How to calculate salary increase?

To calculate a salary increase, subtract your old salary from your new salary to find the difference. Then, divide this difference by your old salary and multiply the result by 100 to get the percentage. This method shows exactly how much your pay has grown relative to your previous income.

Formula

Percentage Increase = ((New Salary − Old Salary) ÷ Old Salary) × 100

Worked Example

Suppose you earned $50,000 and now earn $55,000:

1. Find the difference: $55,000 − $50,000 = $5,000 (Absolute Raise)
2. Divide by old salary: $5,000 ÷ $50,000 = 0.10
3. Convert to percentage: 0.10 × 100 = 10%

Result: You received a 10% salary increase.