Pay Rise Calculator
Enter your old and new salary to see the percentage increase, or enter a percentage to find your new salary.
per year (+10.00%)
Ok, so I've been offered a pay rise and I want to know what it really means. I'm on $50,000 a year now, and the new figure is $55,000.
So that's $5,000 more a year, which is 10% more.
Split it up and that's about $417 more a month, $96.15 more a week, and $2.40 more for every hour I work. And on the new pay I'd earn $4,583 a month before tax.
I'm not arguing with that. I'll say yes before anyone changes their mind.
I'd only been looking at the big number. Broken down like this, it's much easier to judge.
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A pay rise sounds good until you ask what it actually adds up to. Enter your old and new salary, or the percentage you were offered, and see the extra you get each year, month, week and hour.
How it's worked out
- The increase is the new salary minus the old salary.
- The percentage is the increase divided by the old salary, times 100.
- The extra each month is the increase divided by 12, each week divided by 52, and each hour divided by 40 hours a week for 52 weeks.
Going from $50,000 to $53,500 is an increase of $3,500. That is 7% of the old salary, or $291.67 more each month.
What a pay rise adds up to
| Salary | 2% rise | 3% rise | 5% rise | 10% rise |
|---|---|---|---|---|
| $30,000 | $600 a year ($50.00 a month) | $900 a year ($75.00 a month) | $1,500 a year ($125.00 a month) | $3,000 a year ($250.00 a month) |
| $40,000 | $800 a year ($66.67 a month) | $1,200 a year ($100.00 a month) | $2,000 a year ($166.67 a month) | $4,000 a year ($333.33 a month) |
| $50,000 | $1,000 a year ($83.33 a month) | $1,500 a year ($125.00 a month) | $2,500 a year ($208.33 a month) | $5,000 a year ($416.67 a month) |
| $60,000 | $1,200 a year ($100.00 a month) | $1,800 a year ($150.00 a month) | $3,000 a year ($250.00 a month) | $6,000 a year ($500.00 a month) |
| $80,000 | $1,600 a year ($133.33 a month) | $2,400 a year ($200.00 a month) | $4,000 a year ($333.33 a month) | $8,000 a year ($666.67 a month) |
| $100,000 | $2,000 a year ($166.67 a month) | $3,000 a year ($250.00 a month) | $5,000 a year ($416.67 a month) | $10,000 a year ($833.33 a month) |
Before tax. The monthly figure is the extra gross pay each month.
Common mistakes
- Judging a rise by the percentage alone. Look at what it is in actual money each month, after tax.
- Forgetting prices have gone up too. A 3% rise when prices went up 3% leaves you where you were.
- Asking for a number without working it out first. Know the new salary you want, and the reasons for it, before the conversation.
- Mixing up percent and percentage points. Going from a 3% rise to a 5% rise is 2 points more, not 2% more.
Questions
Does this account for tax?
No. All figures are gross. How much of your raise you actually see depends on your tax bracket and any changes to deductions. The gross difference is still useful for understanding the size of the raise.
What is a good pay rise percentage?
That depends on inflation, your industry, and your individual situation. A raise below inflation is effectively a pay cut in real terms. As a rough guide, anything above inflation (around 2 to 4% in normal years) is a real increase in buying power.
Can I use this to calculate a pay cut?
Yes. If the new salary is lower than the old one, the tool shows the decrease as a negative number. Useful for working out what a reduced-hours arrangement or role change actually costs you.
How is the percentage worked out?
The increase is divided by your old salary and multiplied by 100. A rise from $50,000 to $53,500 is $3,500, which is 7% of $50,000.
What if I know the percentage and not the new salary?
Switch to the percentage option, enter your current salary and the rise you were offered, and it works out the new salary and what the extra comes to.
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