A pay raise increases your base earnings, meaning every hour you work or every paycheck you receive is larger than before. Unlike a bonus, which is a one-time event, a raise permanently lifts your financial baseline.

Calculating the percentage of your raise is critical for negotiation. If inflation is 4% and your raise is 3%, your "real wage" has actually decreased in purchasing power.

How to Check Your Pay Raise

Check your pay stub or offer letter for your Old Rate.
Confirm your New Rate.
Use the calculator above or the formula: (New - Old) / Old.
Multiply by 100 to get the percentage.

Example: Only a $1 raise? If you were making $10/hr, that is a huge 10% raise. If you were making $50/hr, that is a tiny 2% raise. Context matters.

Types of Pay Raises

Merit Raise: Performance-based, usually annual.
COLA (Cost of Living): Inflation-based, keeps buying power steady.
Market Adjustment: brings you up to current market rates for your role.
Internal Equity: ensures you are paid similarly to peers in the same role.

Recent Raise Examples

$15/hr to $16/hr

Result: 6.67% raise

$20/hr to $25/hr

Result: 25% raise

$50k to $53k

Result: 6% raise

$75k to $85k

Result: 13.33% raise

$30/hr to $31/hr

Result: 3.33% raise

$100k to $115k

Result: 15% raise

$18.50 to $20.00

Result: 8.11% raise

$45k to $46.5k

Result: 3.33% raise

$1200/wk to $1300/wk

Result: 8.33% raise

$60k to $72k

Result: 20% raise

$24/hr to $26.50/hr

Result: 10.42% raise

$90k to $95k

Result: 5.56% raise

$14/hr to $15/hr

Result: 7.14% raise

$200k to $220k

Result: 10% raise

$55k to $57k

Result: 3.64% raise

Pay Raise FAQ

Is pay raise calculated on gross or net pay?

Always calculate raises based on your GROSS pay (before taxes). This is the official number your employer uses for your salary or hourly rate.

How do I calculate an hourly raise?

Subtract old hourly rate from new hourly rate. Divide the difference by the old rate. Multiply by 100. Example: ($22 - $20) / $20 = 0.10, which is 10%.

What is the average pay raise percentage?

Average annual merit increases usually hover around 3%. Inflation adjustments might add another 1-3%. High performers or those getting promotions often see 10-20%.