1. What is the Pay Increase Calculator?

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

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Old Pay — Your current salary amount
• Rate — The percentage increase (e.g., 5 for 5%)

Explanation: The formula converts the percentage increase to a decimal multiplier (1 + rate/100) and applies it to your current pay.

3. Importance of Pay Increase Calculation

Details: Understanding your pay increase helps with financial planning, budgeting, and evaluating job offers or promotions.

4. Using the Calculator

Tips: Enter your current pay in dollars and the percentage increase. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this calculate compound increases?
A: No, this calculates a single percentage increase. For multiple raises, you would need to apply the formula sequentially.

Q2: How do I calculate a pay decrease?
A: Use the same calculator but enter a negative percentage (though the calculator currently only accepts positive values).

Q3: Is this before or after taxes?
A: The calculator shows gross pay amounts before any deductions.

Q4: Can I use this for hourly wages?
A: Yes, you can use it for any pay amount (salary, hourly, weekly, etc.) as long as you're applying the same percentage increase.

Q5: How accurate is this calculation?
A: The calculation is mathematically precise for the given inputs, but actual take-home pay may vary based on tax brackets and deductions.