A Pay Raise Calculator
A raise has three numbers that matter: the new salary, the extra pay per period, and whether the increase beats inflation. A nominal raise that falls below inflation is a cut in real terms, even though the paycheck is bigger.
New salary
$63,000.00
- Annual increase
- $3,000.00
- Increase per period
- $250.00
- Real raise after inflation
- 194.17%
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
New salary = old salary x (1 + raise%)
- old
- Current salary before the raise
- raise
- Increase as a decimal, such as 0.05 for 5%
- inflation
- Price growth over the same period
- real
- Raise after adjusting for inflation
How to check the result by hand
- 1
Note the current salary
Start from the actual annual figure, including any regular bonuses if you want the comparison to reflect total pay.
- 2
Convert the raise to a decimal
5% becomes 0.05 and 3.5% becomes 0.035.
- 3
Multiply for the new salary
Multiply the old salary by one plus the rate. 60,000 times 1.05 is 63,000.
- 4
Find the per-period increase
Divide the annual increase by the number of pay periods. 3,000 over twelve months is 250 a month.
- 5
Adjust for inflation
Compare the raise with the inflation rate over the same period. Only the amount above inflation is a real gain in purchasing power.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate A Pay Raise page.