1. What is a Pay Raise Calculator?

The Pay Raise Calculator helps you determine your new salary after a percentage increase. It calculates both your new pay amount and the actual dollar amount of your raise.

2. How Does the Calculator Work?

The calculator uses the pay raise formula:

Where:

• Old Pay — Your current salary or hourly wage
• Rate — The percentage increase you're receiving

Explanation: The formula converts the percentage raise to a decimal, adds 1 to represent your original pay, then multiplies by your current pay.

3. Understanding Pay Raises

Details: Pay raises can be cost-of-living adjustments, merit increases, promotions, or market adjustments. Understanding the actual dollar impact helps in financial planning.

4. Using the Calculator

Tips: Enter your current pay (annual salary or hourly rate) and the raise percentage you expect to receive. The calculator will show your new pay amount and the dollar increase.

5. Frequently Asked Questions (FAQ)

Q1: How do I calculate a raise from hourly to salary?
A: First calculate annual pay (hourly rate × hours per week × 52 weeks), then apply the percentage raise.

Q2: What's the difference between a raise and a bonus?
A: A raise is a permanent increase to your base pay, while a bonus is a one-time payment.

Q3: How often do pay raises typically occur?
A: Most companies review salaries annually, but this varies by industry and company policy.

Q4: What's a typical pay raise percentage?
A: Average raises are typically 3-5% for cost of living, with higher percentages for promotions or exceptional performance.

Q5: How do I negotiate a higher raise?
A: Research market rates, document your accomplishments, and be prepared to make a business case for your increased value.