1. What is the Pay Increase Calculator?

The Pay Increase Calculator calculates your new salary after a percentage increase. It helps employees and employers understand the impact of raises or cost-of-living adjustments.

2. How Does the Calculator Work?

The calculator uses the pay increase formula:

Where:

• Old Pay — Current salary or wage amount
• Rate — Percentage increase (e.g., 3 for 3%)
• New Pay — Resulting salary after increase

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

3. Importance of Pay Increase Calculation

Details: Understanding pay increases helps with financial planning, comparing job offers, and evaluating compensation adjustments during performance reviews.

4. Using the Calculator

Tips: Enter your current pay and the percentage increase you're expecting or negotiating. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I calculate my pay increase?
A: Multiply your current pay by (1 + [raise percentage]/100). For example, $50,000 with a 5% raise: 50000 × 1.05 = $52,500.

Q2: What's the difference between percentage and dollar amount increases?
A: Percentage increases maintain pay relativity, while flat dollar amounts benefit lower-paid employees more.

Q3: How often should pay increases occur?
A: Typically annually, but varies by company policy, performance, and economic conditions.

Q4: Does this calculator account for taxes?
A: No, it shows gross pay before deductions. Net pay will be lower after taxes and other deductions.

Q5: How do I calculate my real wage increase with inflation?
A: Subtract the inflation rate from your pay increase percentage to see your real wage change.