How to calculate a raise percentage
Updated
Raise percentage = (new pay − old pay) ÷ old pay × 100. From $60,000 to $63,000: $3,000 ÷ $60,000 = 5%. The other way: new pay = old pay × (1 + raise), so $60,000 × 1.05 = $63,000.
The formulas
| You know | Formula |
|---|---|
| Old and new pay | Raise % = (new − old) ÷ old × 100 |
| Old pay and the raise % | New pay = old × (1 + raise % ÷ 100) |
| An hourly rate | Yearly pay = hourly rate × 2,080 hours (40 hours, 52 weeks) |
Raise in dollars, by salary
| Salary | +3% | +5% | +10% |
|---|---|---|---|
| $40,000 | $1,200 | $2,000 | $4,000 |
| $50,000 | $1,500 | $2,500 | $5,000 |
| $60,000 | $1,800 | $3,000 | $6,000 |
| $75,000 | $2,250 | $3,750 | $7,500 |
| $100,000 | $3,000 | $5,000 | $10,000 |
| $125,000 | $3,750 | $6,250 | $12,500 |
| $150,000 | $4,500 | $7,500 | $15,000 |
Hourly raises
| Hourly rate | +3% | +5% | Yearly, at +5% |
|---|---|---|---|
| $15.00 | $15.45 | $15.75 | $32,760 |
| $20.00 | $20.60 | $21.00 | $43,680 |
| $25.00 | $25.75 | $26.25 | $54,600 |
| $30.00 | $30.90 | $31.50 | $65,520 |
| $40.00 | $41.20 | $42.00 | $87,360 |
Raises add up
3.5% a year for five years is 18.8% in total, not 17.5%. 5% a year for five years is 27.6%.
The raise that gets you to the median
Gap % = (median − your pay) ÷ your pay × 100. An accountant in the Austin area paid $75,000: the median there is $83,120, a 10.8% raise.
See where your pay stands for your job and city. Takes 30 seconds. Free, no sign-up.
Check my payQuestions
How do I calculate a raise on hourly pay?
Multiply your rate by 1 plus the raise: $20.00 × 1.05 = $21.00. For yearly pay, multiply the hourly rate by 2,080 hours.
How do I calculate my raise percentage?
Subtract your old pay from your new pay, divide by your old pay, multiply by 100. $52,000 to $54,600: $2,600 ÷ $52,000 = 5%.
What is a good raise percentage?
Employers plan 3.5% on average for 2027. Above inflation (3.7%) your pay buys more; below the median for your job and city, ask for the gap.
Sources
- Mercer, US employers stick with moderate pay increases for 2027 (QuickPulse, 1,001 U.S. organizations), August 31, 2026
- Payscale Salary Budget Survey, reported by WorldatWork (1,266 organizations), August 6, 2026
- The Conference Board, U.S. Salary Increase Budgets 2026-2027, September 3, 2026
- Salary.com 2026-2027 report, reported by WorldatWork (818 organizations), October 1, 2026
- U.S. Bureau of Labor Statistics, Consumer Price Index, September 2026, October 14, 2026
- U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025, published May 15, 2026
U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025, www.bls.gov/oes. BLS.gov cannot vouch for the data or analyses derived from these data after the data have been retrieved from BLS.gov.