1. What is the Salary Increase Formula?

The salary increase formula calculates the new salary after a percentage increase is applied to the original salary. It's commonly used for salary negotiations, raises, and financial planning.

2. How Does the Calculator Work?

The calculator uses the salary increase formula:

Where:

• Old Salary — Current salary amount before increase
• Rate — Percentage increase (e.g., 5 for 5%)

Explanation: The formula calculates the increase amount by multiplying the old salary by the percentage (converted to decimal) and adds it to the original salary.

3. Importance of Salary Calculation

Details: Accurate salary calculations are essential for financial planning, budgeting, and understanding the real impact of raises or cost-of-living adjustments.

4. Using the Calculator

Tips: Enter your current salary and the percentage increase you expect. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I calculate a salary decrease?
A: Use the same formula but with a negative percentage value for the rate.

Q2: Is this before or after taxes?
A: This calculates gross salary before any deductions. Net pay would be lower after taxes and other deductions.

Q3: Can I calculate multiple raises?
A: For multiple raises, you would need to apply the formula sequentially for each raise.

Q4: How does this compare to compound raises?
A: This calculates a single raise. Compound raises would require applying the formula multiple times over different periods.

Q5: What if I get a raise plus a bonus?
A: This calculator only handles percentage increases to base salary. Bonuses would need to be added separately.