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Salary Increase Calculator (2025)

Don't just calculate the percentage. Understand what your pay raise actually means for your purchasing power in 2025.

Calculate Your True Pay Raise In Seconds

Quick Answer

To calculate your salary increase percentage, subtract your old salary from your new salary, divide by your old salary, and multiply by 100. This calculator does this instantly and provides a crucial 'Real Value' analysis—comparing your nominal raise against the 2025 projected inflation rate to show if you're actually gaining purchasing power.

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Salary Increase Calculator

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How to Calculate

  1. Enter your current annual salary or hourly wage.
  2. Enter your new offered salary or effective wage.
  3. See your percentage increase and inflation analysis.

The Formula

((New Salary - Old Salary) / Old Salary) * 100

2025 Salary Increase Scenarios

Scenario Raise % Verdict
Cost of Living (COLA) 2-4% Keeps up with bills. Neutral wealth growth.
Strong Merit Increase 5-9% Beats inflation. Real purchasing power gains.
Promotion / Job Hop 15-25%+ Lifestyle changing income shift.
Stagnation 0-2% Likely effectively a pay cut due to inflation.

Projection based on estimated 2025 economic trends.

Inflation Comparison Analysis: The 'Real' Raise

Earning more dollars doesn't always mean you are richer. To understand your true salary increase, you must compare your raise percentage against the Consumer Price Index (CPI) or inflation rate.

The Real Wage Formula

Real Raise % ≈ Nominal Raise % - Inflation %

**Example:**
If you get a **5% raise** but inflation involves a **3% price increase** across the economy, your "Real Raise" is only roughly **2%**.

This calculator automatically highlights this gap. If your raise section shows a neutral or negative "Real Growth" figure, it might be time to negotiate for a higher adjustment or seek a new role.

Country-Specific Logic (US vs EU)

🇺🇸 United States

In the US, salary increases are typically discussed in Gross Annual Terms.

  • ✓ Average merit increase: ~3.8-4.5%
  • ℹ Raises often happen annually (Jan or Fiscal Year).
  • • Health premiums may eat into net raises.

🇪🇺 European Union

In the EU, many negotiate based on Monthly Net or Annual Gross depending on the country.

  • ✓ Indexation (automatic inflation adjustment) exists in countries like Belgium/Luxembourg.
  • ℹ Tax brackets are steeper; a 10% gross raise might only be a 5-6% net raise.

Benchmarks

50k to 55k Raise

Result: 10.0% Increase (+$5,000)

$20/hr to $25/hr

Result: 25.0% Increase (+$5/hr)

COLA Adjustment (3%)

Result: Matches Inflation (Neutral Purchasing Power)

Promotion (20%)

Result: Significant Real Income Growth

Salary Raise FAQ

How do I calculate my salary increase percentage for 2025?

Use the formula: `(New Salary - Old Salary) / Old Salary * 100`. For example, if you go from $50,000 to $55,000: `(55,000 - 50,000) / 50,000 = 0.10`, which is a 10% raise.

What is a good salary increase percentage in 2025?

In 2025, a 'good' raise typically exceeds the inflation rate (projected around 2.5-3.5%). A 4-5% raise maintains purchasing power, while merit increases often range from 5-10%, and promotions can command 15-20%+.

Does this calculator work for hourly wages?

Yes. The math for percentage increase is identical whether you earn a salary or an hourly wage. Simply input your current hourly rate (e.g., $25) and your new rate (e.g., $28) to get the correct percentage (12%).

How does inflation affect my pay raise?

If your salary increase percentage is *lower* than the inflation rate, your 'real' income actually decreases because goods cost more. This calculator estimates your 'Real Growth' by effectively subtracting an estimated inflation factor from your nominal raise.

How do I calculate a raise from a weekly or monthly pay rate?

Ensure both numbers use the same time period. If you compare a *monthly* current pay to a *yearly* new pay, the result will be wrong. Convert everything to the same unit (all annual or all hourly) before calculating.

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