1. What is the Salary Increase Calculator?

The Salary Increase Calculator helps you determine your new salary after a percentage increase. It calculates both the new salary amount and the actual dollar amount of the increase.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Old Salary — Current salary amount before increase
• Rate — Percentage increase (e.g., 5 for 5%)

Explanation: The formula converts the percentage increase to a decimal, adds 1 to create a multiplier, and applies it to the old salary.

3. Importance of Salary Calculations

Details: Understanding salary increases helps with financial planning, budgeting, and evaluating job offers or promotions.

4. Using the Calculator

Tips: Enter your current salary and the percentage increase you expect or have been offered. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I calculate a salary decrease?
A: Use the same calculator but enter a negative percentage for the rate.

Q2: Does this account for taxes or deductions?
A: No, this calculates gross salary only. Net pay after deductions would be lower.

Q3: What about compounding raises over multiple years?
A: This calculates a single increase. For multiple years, you would need to apply the formula sequentially.

Q4: How accurate is this calculator?
A: It provides mathematically precise results based on the inputs you provide.

Q5: Can I use this for hourly wage increases?
A: Yes, by calculating annual salary (hourly rate × hours per week × 52 weeks).