How do I calculate a raise percentage from old and new pay?

Subtract old pay from new pay, divide the difference by old pay, and multiply by 100. The calculator’s Old and new pay mode performs those steps for you automatically.

What is a 5% pay raise?

Multiply current gross pay by 1.05. For example, a 5% raise changes 50,000 per year to 52,500 per year before tax and deductions.

How much more is a raise per paycheck?

Divide the annual gross increase by the number of pay periods. The results compare weekly (52), biweekly (26), semimonthly (24), and monthly (12) schedules; use the schedule that matches your employer.

Does this calculator include tax or inflation?

Tax, deductions, and benefits are excluded. You may enter your own inflation rate for a purchasing-power comparison, but Formulexa does not assume or forecast a live inflation rate.

Compensation & Growth Tools

Pay RaiseCalculator

Calculate a percentage or flat pay increase, or compare old and new gross pay to find your exact raise percentage and full paycheck breakdown.

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Gross-pay comparison only. Income tax, inflation, benefit deductions, and local labour regulations are excluded.

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Fill in your details and select Calculate raise to see your new pay and increase.

How it works
Choose your pay frequency, enter a raise, and calculate to see your new pay instantly.
View explanation
Formula used
New pay = current pay × (1 + raise % ÷ 100)
See formula
Worked example
See how an 8% raise changes a $50,000 annual salary.
View example
What's excluded
Gross-pay comparison only — tax, deductions, and benefits are excluded.
Read more

How to calculate a pay raise

This salary increase calculator can work forward from a raise, or backward from an old and new salary. Follow these steps to compare gross pay on the schedule that applies to you.

1Enter your current gross pay.
2Choose a raise percentage, flat pay increase, or old-and-new-pay comparison.
3Choose your pay frequency and currency.
4Click “Calculate raise” to see your new pay and increase.

Formula

New pay = current pay × (1 + raise % ÷ 100)

Increase = new pay − current pay

Three useful ways to compare pay

•Raise percentage: Find new salary after a stated merit or inflation percentage.
•Flat increase: Add a set dollar amount per hour, week, month, or year.
•Old and new pay: Reverse-engineer your exact raise percentage when you know both numbers.

Worked example

An 8% raise on a $50,000 annual baseline salary:

Current Annual Pay: $50,000.00
Raise Percentage: 8%
New Annual Pay: $54,000.00
Annual Increase: $4,000.00
Monthly Increase: $333.33

Results may vary based on exact tax brackets, overtime policies, and employer compensation structures.

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Formulexa Pay Raise Calculation Standard · Last reviewed: August 15, 2026.

Pay RaiseCalculator

Your Details

How it works

Formula used

Worked example

What's excluded

How to calculate a pay raise

Formula

Three useful ways to compare pay

Worked example

Negotiating a pay raise?

Frequently Asked Questions

Why trust this calculator