How to Calculate a Pay Raise
A pay raise increases your compensation. The calculator supports three methods: percentage raise, flat amount, or entering a new rate directly.
Percentage Raise Formula
New Pay = Current Pay × (1 + Raise% ÷ 100)
Example: $22/hr with a 4.5% raise = $22 × 1.045 = $22.99/hr
Flat Amount Formula
New Pay = Current Pay + Raise Amount
Example: $22/hr + $1.50/hr raise = $23.50/hr
Average Raise by Type
| Raise Type | Typical Range |
|---|---|
| Cost of living (COLA) | 2–4% |
| Merit increase | 3–5% |
| Promotion | 10–15% |
| Job change | 10–20% |
| Counter-offer | 10–20% |
Hourly to Annual Quick Reference
| Hourly Rate | Weekly (40 hrs) | Monthly | Annual |
|---|---|---|---|
| $15.00 | $600 | $2,600 | $31,200 |
| $20.00 | $800 | $3,467 | $41,600 |
| $25.00 | $1,000 | $4,333 | $52,000 |
| $30.00 | $1,200 | $5,200 | $62,400 |
| $40.00 | $1,600 | $6,933 | $83,200 |
| $50.00 | $2,000 | $8,667 | $104,000 |
Common Uses
- Salary negotiation: Compare a percentage raise to a flat amount to see which is worth more.
- Job offers: Enter your new rate to see the percentage increase over your current pay.
- Annual reviews: Calculate the dollar impact of a merit raise across all pay periods.
- Budgeting: See how a raise affects monthly take-home for planning purposes.
- Contract work: Convert between hourly and annual rates when evaluating opportunities.
Tips for Negotiating a Raise
- Research market rates for your role and location before negotiating.
- A 3% raise barely keeps pace with inflation — aim for 5%+ for a real increase.
- Consider total compensation: benefits, bonuses, and equity can outweigh base pay differences.
- Time your ask after completing a major project or during annual review cycles.