How to use this calculator
- Choose what you know: your old and new pay, or your old pay and the percentage you've been offered.
- Enter your pay before tax, as a yearly figure. For a monthly salary, multiply by 12. For an hourly wage, use our hourly to annual calculator first.
- Add inflation if you want to know whether the raise keeps up with rising prices. Use the latest yearly inflation figure for your country, such as CPI.
How it's calculated
Pay rise % = (new pay − old pay) ÷ old pay × 100
New pay = old pay × (1 + rise % ÷ 100)
Extra a month = (new pay − old pay) ÷ 12
Real rise % = (1 + rise %) ÷ (1 + inflation %) − 1
Pay to keep up = old pay × (1 + inflation %)
The real rise divides rather than subtracts: a 5% raise with 3% inflation is a real rise of 1.94%, not 2%.
Worked examples
$50,000 → $53,000 rise 6.00%; $3,000 a year; $250 a month
with 3% inflation real rise 2.91%; $1,500 more than keeping up ($51,500)
£40,000 + 4.5% new pay £41,800; £1,800 a year; £150 a month
5% raise, 3% inflation real rise 1.94%
2% raise, 4% inflation real rise −1.92% (a real-terms pay cut)
Frequently asked questions
What is a real-terms pay cut?
If prices rise faster than your pay, your pay buys less than it did, even though the number went up. A 2% raise in a year when prices rose 4% is a real-terms cut of about 1.9%.
How much of my raise will I take home?
Less than the full amount, because the extra pay is taxed at your top rate. In the UK, our take-home pay calculator shows your pay after tax: try your old and new salaries to see the difference.
Is a percentage or a flat raise better?
It depends on your pay. A flat $2,000 raise is 5% on $40,000 but only 2.5% on $80,000. Compare both ways with this calculator before you negotiate.