1. What is the Salary Increase Calculator?

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

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Old Salary — Your current salary before the increase
• Rate — The percentage increase (e.g., 5 for 5%)

Explanation: The formula converts the percentage increase to a decimal (by dividing by 100), adds 1 to represent the original salary, then multiplies by the old salary to get the new amount.

3. Importance of Salary Calculations

Details: Understanding salary increases helps with financial planning, comparing job offers, and negotiating compensation. It provides clear insight into how percentage increases translate to actual dollars.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Should I enter the percentage with or without the % sign?
A: Enter just the number (e.g., for 5% increase, enter 5 not 5%).

Q2: Does this calculator account for taxes or deductions?
A: No, this shows gross salary increase before any deductions.

Q3: Can I use this for hourly wage increases?
A: Yes, enter your annual equivalent hourly wage (hours × wage × 52 weeks).

Q4: What if I get multiple raises in a year?
A: You would need to compound the increases (calculate each one sequentially).

Q5: How do I calculate my monthly increase from this?
A: Divide the annual increase amount by 12 for approximate monthly increase.