Work out what a pay raise is really worth
“A 4% raise” sounds fine until you see what it adds to each paycheck, or notice that prices rose faster. Enter your current salary and one of three things: the percent, the amount or the new salary. You get the other two, the change per paycheck, and the raise after inflation if you add it.
The raise: fill in any one, the other two follow
Your country’s published consumer price change for the period.
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Enter your current yearly salary, then the raise as a percent, an amount or the new salary.
How the raise is calculated
amount = current salary × percent ÷ 100percent = (new salary − current salary) ÷ current salary × 100, shown to two decimal placesper paycheck = yearly salary ÷ paychecks a year(12, 24, 26 or 52)real raise = (1 + raise) ÷ (1 + inflation) − 1: what the raise is worth once prices have moved
All figures are before tax and deductions. The inflation figure is yours to enter, from your country’s statistics office, for the time since your pay last changed.
Questions about the pay raise calculator
How do I calculate a raise as a percentage?
Subtract the old salary from the new one, divide by the old salary and multiply by 100. From $72,000 to $80,000 is $8,000 ÷ $72,000 × 100 = 11.11%.
How much is a 5% raise?
It is your current salary multiplied by 0.05. On $60,000 a 5% raise is $3,000 a year, which is $250 a month, or about $115 on a paycheck every two weeks, before tax.
What is a real raise after inflation?
It is the raise measured in what your pay can buy. Divide (1 + raise) by (1 + inflation) and subtract 1. A 3% raise while prices rose 4% is a real change of −0.96%: a pay cut in buying power.
Is the per-paycheck figure what I will take home?
No, it is before tax. Take-home pay depends on tax, pension and other deductions, which differ by country and by person, so the calculator shows gross figures only.
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