Home
Back
Pay Increase Formula:
| From: | To: |
The Pay Increase Percentage measures how much a salary or wage has increased compared to the previous amount. It's expressed as a percentage of the original pay and helps employees understand the relative value of their raise.
The calculator uses the percentage increase formula:
Where:
Explanation: The formula calculates the difference between new and old pay, divides by the old pay to get the relative increase, then converts to a percentage by multiplying by 100.
Details: Understanding your pay increase percentage helps in financial planning, comparing job offers, and negotiating salaries. It provides a clearer picture than just looking at the dollar amount difference.
Tips: Enter both pay amounts in the same currency (dollars in this calculator). For accuracy, use gross pay amounts before deductions. Both values must be positive numbers.
Q1: Should I use gross or net pay for calculations?
A: Typically use gross pay (before taxes/deductions) as this reflects the actual salary increase from your employer's perspective.
Q2: What's considered a good pay increase percentage?
A: This varies by industry and location, but generally 3-5% is standard for cost-of-living adjustments, while 10%+ may indicate a promotion or significant raise.
Q3: How does this differ from percentage point increase?
A: Percentage increase is relative to the original amount, while percentage points refer to absolute difference (e.g., 5% to 7% is a 2 percentage point increase but a 40% increase relative to original).
Q4: Can this calculator be used for hourly wage increases?
A: Yes, it works the same way for hourly wages as for salaries. Just enter your old and new hourly rates.
Q5: How do I calculate the equivalent annual increase from a one-time bonus?
A: Divide the bonus amount by your old annual salary and multiply by 100 to get the equivalent percentage increase.