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Percentage Increase Formula:
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The salary percentage increase measures how much a salary has grown relative to its original amount. It's commonly used to evaluate raises, promotions, or job changes, providing a standardized way to compare salary growth regardless of the actual dollar amounts.
The calculator uses the percentage increase formula:
Where:
Explanation: The formula calculates the difference between the new and old salary, divides by the old salary to get the relative change, then multiplies by 100 to convert to a percentage.
Details: Understanding the percentage increase helps employees evaluate the real value of a raise, compare job offers, and negotiate salaries. It provides context beyond the raw dollar amount, especially when comparing salaries at different levels.
Tips: Enter both salary amounts in dollars (without commas). The old salary should be your previous salary, and the new salary your current or proposed salary. Both values must be positive numbers.
Q1: What's considered a good percentage increase?
A: Typically, 3-5% is a standard annual raise, 10-20% for promotions, and 20%+ for significant role changes or job switches.
Q2: Should I consider inflation when evaluating raises?
A: Yes, a raise below inflation (typically 2-3%) means your purchasing power has decreased despite the nominal increase.
Q3: How does this differ from percentage points?
A: Percentage increase measures change relative to the original amount, while percentage points measure absolute difference between percentages.
Q4: Can this be used for salary decreases?
A: Yes, the formula will show a negative percentage if the new salary is lower than the old salary.
Q5: Should I include bonuses in salary calculations?
A: For comprehensive comparison, include all compensation (salary + bonuses + benefits), but this calculator focuses on base salary.