Pay raise and wage increase calculator
Compare current and proposed pay to find the percentage raise, increase per hour or pay unit, and annual base pay difference using your paid hours or periods.
Compare a current pay rate with a proposed rate. This free pay raise calculator shows the increase per pay unit, the percentage raise and the annual base pay difference using the number of paid units you supply. Use hourly, weekly, monthly or annual figures, keeping the same basis throughout.
How to use the wage increase calculator
- Enter current pay for one unit, such as one hour or one year. The current amount must be greater than zero.
- Enter proposed pay for that same unit. It must be at least the current amount.
- Enter the number of paid units in a year. For hourly rates, enter paid hours; for monthly pay, enter 12; for annual pay, enter 1.
- Select Calculate to see the rate difference, percentage and annualized figures. Use example loads the worked example below.
The annual multiplier is an assumption you control. For example, 40 paid hours a week × 52 weeks gives 2,080 paid hours. A different schedule needs a different multiplier. Do not enter an hourly amount as current pay and an annual salary as proposed pay.
Pay increase percentage formula
Increase per unit = proposed pay − current pay
Percentage increase = increase per unit ÷ current pay × 100
Annual base pay increase = increase per unit × paid units per year
The percentage uses the old rate as its denominator. A move from $20 to $22 is a 10% raise because $2 ÷ $20 × 100 = 10%. Dividing by the new rate would answer a different question.
Worked example: $20 to $22 an hour
The example assumes 2,080 paid hours in a full year at each rate:
| Result | Amount |
|---|---|
| Current hourly pay | $20 |
| Proposed hourly pay | $22 |
| Increase per hour | $2 |
| Percentage increase | 10% |
| Current annual base pay | $41,600 |
| Proposed annual base pay | $45,760 |
| Additional annual base pay | $4,160 |
The result is an annual base pay increase of $4,160 under those assumptions. It is the difference between two full-year scenarios. A raise starting halfway through a year would not produce the full increase during that first year.
What the result includes
The comparison covers the base amounts you enter at a constant rate and annual multiplier. It does not calculate take-home pay, payroll taxes, employer contributions, benefits, bonuses, overtime premiums or changes in paid hours. The displayed dollar amounts use the same monetary basis throughout; there is no exchange-rate conversion.
Use the staff cost calculator for a separate estimate that includes a percentage for employer costs. For a specific worked week, the timesheet calculator totals hours and its configured overtime rather than annualizing one rate.
Frequently asked questions
Can I compare annual salaries?
Yes. Enter each annual salary and set paid units per year to 1. For example, $50,000 to $55,000 gives a $5,000 increase and a 10% raise.
Can I enter a desired percentage to find the new wage?
This form compares two pay amounts. To prepare a proposed amount yourself, multiply current pay by 1 plus the percentage divided by 100. For example, $20 × 1.05 = $21 for a 5% raise, then enter the two amounts to check them.
What happens if pay is unchanged or reduced?
Equal current and proposed amounts give a zero increase. This wage increase calculator rejects a proposed amount below current pay because its form is intended for raises.
Does it change payroll or save the calculation?
No. It works independently of payroll and employee records. Use Copy result before leaving the page if you want to retain the figures.
Related free tools
Explore Headoffis features for managing your stores, stock and team.