THE MATH, IN THE OPEN

Simple formulas.
Clear assumptions.

All results are estimates of gross pay in US dollars, before taxes and deductions. Calculations run on your device. Displayed amounts are rounded to cents; the underlying calculations keep their precision until display.

1. Calculate a raise

At $60,000 per year, a 5% raise adds $3,000 and produces a new annual salary of $63,000. If you enter a dollar increase instead, we simply add it to your current pay. For hourly inputs, a dollar increase is an increase per hour.

2. Work backward from new pay

Moving from $25 to $27 per hour is an 8% raise. Current pay must be greater than zero. A negative percentage or a lower new pay can model a pay cut; pay cannot fall below zero.

3. Annualize hourly pay

The defaults are 40 hours per week and 52 paid weeks per year (2,080 hours). You can change both. Paid leave belongs in paid weeks; unpaid time does not. Every hour uses the same rate. Overtime premiums, unpaid breaks, variable schedules, bonuses, commissions, and stock compensation are not modeled.

For annual salaries, the schedule affects the hourly equivalent only. The annual salary is not reduced when you change hours or weeks. Changing between annual and hourly input converts the existing amount using your chosen schedule; small rounding differences may result.

4. Split the annual change across paychecks

A $3,000 raise is approximately $115.38 per paycheck over 26 payments, or $125 over 24 payments. Monthly change is the annual change divided by 12; it is an average, not the exact total in a particular calendar month.

We use standard payment counts. An occasional 27-paycheck biweekly year or 53-paycheck weekly year is not modeled. Hourly income is averaged across the selected number of payments, even if the paid schedule is shorter than a full year. The calculation assumes the new rate applies for a full year; midyear raises, retroactive pay, and partial pay periods are not prorated.

5. Optionally compare with inflation

Rates in this formula are decimals: 5% becomes 0.05. With a 5% nominal raise and a 3% inflation assumption, the real change is approximately 1.94%. The calculator’s 3% starting value is an editable hypothetical assumption, not a current inflation statistic. This compares annual rates and does not calculate personal living costs.

What this calculator does not estimate

Federal, state, or local taxes; tax withholding; retirement and insurance deductions; overtime entitlement; minimum-wage compliance; or whether a raise is appropriate for your role. Results are for general planning and are not financial, tax, legal, or employment advice.