How to use the pay rise calculator
- Choose what you know. Pick The raise % if you have been offered, say, a 4% raise and want to see the new pay. Pick The new pay if you know the new figure and want the percentage, for example to compare a job offer with your current pay.
- Choose hourly or yearly pay. For hourly pay, enter the hours you work in a week so the calculator can show the weekly, monthly and yearly difference.
- Enter your current pay before tax and either the percentage or the new pay. For a pay cut, enter a negative percentage or a lower new pay.
- Optional: open Compare with inflation to see whether the raise beats rising prices.
The answer updates as you type. In the US people usually say a raise; in the UK, a pay rise. They mean the same thing, and the sums are identical.
How a raise is worked out
There are two sums, one for each direction:
- New pay = current pay × (1 + raise ÷ 100). A 4% raise on $50,000 is $50,000 × 1.04 = $52,000.
- Raise % = (new pay − current pay) ÷ current pay × 100. Going from $18.00 to $19.50 an hour is $1.50 ÷ $18.00 × 100 = 8.33%.
The percentage is always measured against your current pay, not the new pay. That is why a 10% cut followed by a 10% raise does not take you back where you started: $40,000 cut by 10% is $36,000, and 10% more is only $39,600.
New pay is rounded to the cent, because that is how it is paid. A 3.5% raise on $18.75 an hour is $19.40625, so the new rate is $19.41, and the weekly and yearly differences are worked from $19.41.
What the raise means each month
A percentage is easy to quote but hard to feel. The calculator turns it into money for each pay period, before tax:
| Example | A week | A month | A year |
|---|---|---|---|
| $50,000 a year, 4% raise | +$38.46 | +$166.67 | +$2,000.00 |
| $18.00 to $19.50 an hour, 40 hours | +$60.00 | +$260.00 | +$3,120.00 |
| £28,000 a year, 3% pay rise | +£16.15 | +£70.00 | +£840.00 |
For yearly pay, a month is the yearly difference divided by 12 and a week is divided by 52. For hourly pay, a week is the extra per hour times your weekly hours, a year is 52 of those weeks, and a month is the year divided by 12. Unpaid weeks off, overtime and bonuses are not included.
Your take-home increase is smaller than these figures, because tax and other deductions come out of the extra pay too. How much smaller depends on where you live and your own situation.
Does the raise beat inflation?
If prices rise faster than your pay, a raise can still leave you able to buy less than before. The calculator compares the two with this sum:
Real change % = ((1 + raise) ÷ (1 + inflation) − 1) × 100
You can use the latest official figures or enter your own. In the US, the Bureau of Labor Statistics reported in its August 2026 release that "The all items index rose 3.4 percent for the 12 months ending August". In the UK, the Office for National Statistics reported that "The Consumer Prices Index (CPI) rose by 3.1% in the 12 months to August 2026".
| Raise | Inflation | Real change | Pay that keeps pace |
|---|---|---|---|
| 4% on $50,000 | US CPI 3.4% | +0.58% | $51,700.00 |
| 3% on £28,000 | UK CPI 3.1% | -0.1% | £28,868.00 |
In the UK example, the 3% pay rise is slightly below inflation, so in what it buys it is a very small cut. The last column is what the old pay would need to be to keep pace with prices.
These are national averages over the 12 months to August 2026, the latest data available when this page was checked (US figures released 11 September 2026, UK figures 16 September 2026). Your own costs may rise faster or slower, and a raise usually covers a different 12 months, so treat the result as a rough guide.
Comparing a job offer
Choose The new pay and enter the offer to see it as a percentage of what you earn now. Compare on the same basis: if one job is hourly and the other is salaried, convert first with the hourly to salary calculator. A higher salary with more hours a week can be a smaller raise per hour than it looks, and benefits such as paid vacation or a retirement plan are not in these figures.
Questions and answers
How do I calculate a 3% raise?
Multiply your current pay by 1.03. On $45,000 a year that is $46,350, which is $1,350 more a year or $112.50 more a month before tax.
How do I work out what percentage my pay rise is?
Take the new pay minus the old pay, divide by the old pay and multiply by 100. From £30,000 to £31,500 is £1,500 divided by £30,000, which is a 5% pay rise.
Is a raise worked out on gross or net pay?
Raises are normally quoted on gross pay, before tax. This calculator works on gross pay. Your take-home increase will be smaller once tax and deductions are taken off the extra.
What is a real pay rise?
It is the raise after allowing for inflation. If your pay goes up 4% while prices go up 3.4%, your pay buys about 0.58% more than before. If prices rise faster than your pay, the real change is negative.
Does it work for hourly pay?
Yes. Choose Hourly and enter your hours per week. The calculator shows the difference an hour, a week, a month and a year, and your new pay for a full year.
How current are the inflation figures?
They are the latest official 12-month figures when the page was checked: the US CPI from the Bureau of Labor Statistics and the UK CPI from the Office for National Statistics, both for the 12 months to August 2026. You can also enter your own figure.
Sources
Checked on 7 October 2026. If a rule has changed, please tell us.