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Salary Increase Calculator

Work out a new salary from a percentage rise or a target figure, the real increase after inflation, mid-year pro-rata pay and multi-year compounding.

$60,900
New salary a year
5.00%
Increase
$2,900
Extra per year
1.94%
Real increase after inflation
BasisNowAfter the changeDifference
Per year$58,000$60,900$2,900
Per month$4,833.33$5,075.00$241.67
Per week$1,115.38$1,171.15$55.77
Per hour (37.50 h × 52 wk)$29.74$31.23$1.49
In today’s money$58,000$59,126$1,126
—
Days on the new rate this year
—
Actually paid this pay year
$70,600
Salary in 5 years
$60,900
Same figure in today's money
YearSalaryCumulative rise from todayIn today’s moneyPer month
Now (after the rise)$60,9000.00%$60,900$5,075.00
+1$62,7273.00%$60,900$5,227.25
+2$64,6096.09%$60,900$5,384.07
+3$66,5479.27%$60,900$5,545.59
+4$68,54312.55%$60,900$5,711.96
+5$70,60015.93%$60,900$5,883.32

new = current × (1 + rise%)  ·  implied rise% = (new − current) ÷ current  ·  real rise% = (1 + rise) ÷ (1 + inflation) − 1

Worked example: $48,000 rising to $52,000 is an 8.33% increase. A 5% rise against 3% inflation is a real increase of 1.94%, not 2% — the Fisher relation divides rather than subtracts, and the gap widens as both numbers get larger. $50,000 compounding at 3% for five years reaches $57,964.

Every figure is calculated in your browser and nothing is uploaded. These are gross amounts: income tax, social-security contributions, pension deductions and student-loan repayments all vary by country and by individual, and a rise that crosses a tax threshold keeps less of itself than the headline suggests, so treat the take-home effect separately. The pay-year pro-rata assumes the rise is paid from the effective date on a daily basis; employers who apply it from the start of the next whole month will produce a slightly different number.

What is the Salary Increase Calculator?

This calculator answers the three questions people actually have about a pay rise. What is the new number?

  • Three modes: percentage rise, target salary, or comparing two salaries
  • New salary shown per year, month, week and hour on your own hours basis
  • Real increase after inflation using the Fisher relation, not subtraction
  • Mid-year pro-rata from an effective date, counted in days not months
  • Multi-year compounding projection with a today's-money column
  • Negative percentages supported for modelling a pay cut

How to use the Salary Increase Calculator

  1. 1

    Pick whether you are applying a percentage, working back from a target, or comparing two salaries.

  2. 2

    Choose how the salary is quoted — per year, month, week or hour — and enter the current figure.

  3. 3

    Enter the rise, target or comparison salary, plus your contracted hours a week and paid weeks a year.

  4. 4

    Add an inflation rate to see the real increase and the new salary in today's money.

  5. 5

    Set the pay-year start and effective date for the pro-rata, then project forward with an assumed annual rise.

About the Salary Increase Calculator

This calculator answers the three questions people actually have about a pay rise. What is the new number? What is it worth per hour, per month and per year? And, once inflation is taken into account, is it actually a rise at all? You can work forwards from a percentage, backwards from a target salary, or simply compare two figures to get the percentage between them.

It also handles the awkward middle case: a rise that takes effect part-way through the pay year. Give it the pay-year start and the effective date and it shows how many days sit on each rate, what you are actually paid this year, and the full annual figure that applies from next year. A multi-year projection compounds a rise you expect to keep getting.

The real-terms figure uses the Fisher relation rather than simple subtraction, so a 5% rise against 3% inflation shows as 1.94%, not 2%. Everything is calculated in your browser and nothing is uploaded. These are gross amounts — tax, social security and pension deductions vary by country and by person, so the take-home effect needs looking at separately.

Frequently asked questions

How do you calculate a salary increase percentage?

Subtract the old salary from the new one, divide by the old salary and multiply by 100. Going from 48,000 to 52,000 is 4,000 divided by 48,000 = 8.33%. To go the other way, multiply the current salary by one plus the percentage as a decimal.

What is a real-terms pay rise?

It is the increase left after inflation. The correct calculation divides rather than subtracts: (1 + rise) divided by (1 + inflation), minus 1. A 5% rise with 3% inflation is a real increase of 1.94%, slightly less than the 2% most people assume, and the gap widens as the numbers get bigger.

How does a mid-year pay rise work?

You are paid the old rate up to the effective date and the new rate afterwards, so what you actually receive that year is a blend. A rise effective on 1 October in a January pay year gives you nine months at the old rate and three at the new — the full annual figure only shows up next year.

Will a pay rise push me into a higher tax bracket?

It may, and if so you keep less of the increase than the headline suggests — but only the portion above the threshold is taxed at the higher rate, so you never end up worse off overall. These figures are gross; work out the take-home effect using your own country's tax bands.

How much will my salary be in five years?

Compounding matters more than people expect. A 50,000 salary rising 3% a year reaches 57,963.70 after five years, not 57,500, because each rise applies to the already-increased figure. The projection table here shows every year alongside what it is worth in today's money.

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