Salary Increase Calculator | Estimate New Pay

A salary increase calculator can be used by employees, professionals and employers to work out how much extra you will be earning. This can help you understand how much more money you will be earning whether you’ve been given a promotion, annual pay rise, performance related pay increase or have a new job offer.

A salary increase is usually given as a percentage of your salary. For example, if your salary is $50,000 and you receive a 10% increase, your new annual salary will be $55,000 per annum you’ll be earning an extra $5,000 per year before any deductions.

This can be done manually. However by using a salary increase calculator you can quickly work out how much extra you will be earning. Simply put in the salary you’re currently earning and the increase percentage to get an instant result.

This can help you compare different scenarios, decide if a job offer is worth it, prepare for salary negotiation and understand how much more you’ll be earning per month or year. This can be used by employees in various industries, roles and countries.

How to use a salary increase calculator

A salary increase calculator can be used easily by simply putting in some basic information.

Steps:

1. Current Salary

Put in your salary.

2. Increase Percentage

Enter the percentage you expect your salary to be increased by. For example if you expect a 5% increase enter 5. If you expect a 10% increase enter 10. If you expect a 15% increase enter 15.

3. Salary Type

If there is an option to select put in how your salary is calculated. This could be hourly, weekly, monthly or annually.

4. Calculate

Click ‘calculate’.

5. View Results

You will be shown how much extra you’ll be earning, your new salary and how much of a percentage increase you’ll be earning.

6. Compare

Change the increase percentage to see how much of a difference different salary increases will make.

For example if your current salary is $60,000 per annum you can see what a 5%, 8%, 10% or 15% increase will do.

Salary Increase Calculator Formula

To work out your salary increase you can use the formula below.

1. Salary Increase

Salary Increase = Current Salary x (Increase Percentage / 100)

2. New Salary

New Salary = Current Salary + Salary Increase

3. Percentage Increase

Percentage Increase = (Salary Increase / Current Salary) x 100

This can be used for hourly, weekly, monthly and annual salaries.

Example Calculation

Let’s take a look at how a salary increase calculator works.

An employee earns $60,000 per annum and gets a 10% salary increase.

Information Provided:

Current Annual Salary = $60,000

Salary Increase Percentage = 10%

1. Salary Increase

Salary Increase = $60,000 x (10/100)

Salary Increase = $6,000

2. New Annual Salary

New Salary = $60,000 + $6,000

New Salary = $66,000

Example Results

Current Annual Salary

$60,000

Salary Increase

+ $6,000

Increase Percentage

10%

New Annual Salary

$66,000

Comparison of Monthly Salary

Before Salary Increase = $5,000

After Salary Increase = $5,500

Extra Money Earned Per Month = $500

From this example we can see that the employee will be earning an extra $6,000 annually before taxes and deductions. Their monthly gross salary increases from $5,000 to $5,500.

Understanding Your Results

Once you’ve entered your salary and expected increase percentage you’ll see lots of useful results. Understanding these will help you see how much your new salary is.

Current Salary

This shows how much money you’re currently earning.

Salary Increase

This shows how much extra money you’ll be earning. For example $5,000 increase means your annual gross earnings will be $5,000 extra.

Increase Percentage

This shows how much your salary has increased. For example if you’ve had a 10% increase your new salary will be 10% higher than your current salary.

New Salary

This shows what your new salary will be after the increase.

Monthly/Period Increase

Depending on the calculator you may also see how much extra you’ll be earning per month, week or hour.

These results will generally show your gross salary which means they won’t include any deductions. Your real salary may be less due to tax, insurance, retirement and other deductions.

What Influences Your Salary Increase

There are many factors that will influence how much of a percentage increase you’ll receive. This can help you understand if you’re being paid fairly.

Employee Performance

Employees who consistently meet their goals, show good productivity and help grow the business may receive a higher salary increase.

Industry

Different industries will have different salary increases. Technology, finance, healthcare, manufacturing and more.

Skills and Experience

Employees with specialist skills, professional qualifications and more experience may receive a higher increase.

Promotion

If an employee gets promoted they may have additional responsibilities and therefore a higher salary. This may mean they get a bigger increase than an annual increase.

Company Profitability

If an organisation is profitable, increasing in revenue and financially stable they may have a bigger budget to increase salaries.

Inflation

Employers may increase your salary to help you cope with increasing living costs.

Location

Depending on where you live your salary may be increased differently.

Salary Negotiation

Employees who negotiate effectively using industry salary data, their achievements and competing job offers may receive a better salary.

Benefits of Using a Salary Increase Calculator

There are many benefits of using a salary increase calculator.

Quick Calculation

You won’t need to do any calculations manually.

Preparation for Negotiation

You can work out how much of an increase you’d get for different percentages so you know what to expect when negotiating.

Financial Planning

Knowing what your new salary will be can help you plan how much you’ll be spending per month, saving, investing, paying loans and more.

Compare Job Offers

You can compare what you’re earning currently with what you’d be earning with a new employer.

Consider Promotions

If you’re offered a promotion you can work out whether the new salary will be appropriate for the extra responsibility.

Understand Annual Increases

Employees can use this to work out how much they’ll be earning after their regular annual increase.

Help with Saving

Knowing how much extra money you’ll be earning can help you decide how much to save, invest, pay off debts and spend.

Help with Payroll

Employers and HR can work out how much they’ll be spending on salary increases and what different increases would look like.

Accuracy

A salary increase calculator will provide accurate results if you enter the correct salary and percentage. However your actual salary may be different depending on your employment agreement, payroll and deductions.

It will generally assume your salary is being increased directly from your current salary. This doesn’t automatically include tax, insurance, retirement, bonuses or other adjustments.

Gross vs Net

Gross salary is how much you’ll be earning before any deductions. Net salary is how much you’ll be earning after tax and deductions.

Assumes Uniform Increase

If you’re working out an annual increase based on a full years salary, you may not be earning the extra amount shown.

Inflation

Even though your salary is being increased your buying power may not have improved by the same percentage as your salary if the cost of living has increased.

Doesn’t Show Competitive Increase

This won’t show you if your salary is competitive. You should compare your new salary with current market salary information for similar roles and locations.

Use as a Financial Tool

Use as a financial tool to help with planning.

Frequently Asked Questions

What is a salary increase calculator?

A salary increase calculator is an online tool that can help you work out how much your new salary will be. By entering your current salary and increase percentage you will see how much extra you’ll be earning.

How do I calculate a 10% salary increase?

Multiply your salary by 0.10. For example if your salary is $50,000, your increase will be $5,000 your new salary will be $55,000 per annum.

How much is a 5% increase on $60,000?

A 5% increase on a $60,000 annual salary equals $3,000. Your new salary will be $63,000 per annum (excluding tax and deductions).

How do I calculate my new salary after an increase?

Multiply your current salary by (increase percentage / 100). Add this number to your current salary and you’ll have your new salary.

Can I calculate my hourly and monthly salary increases?

Yes! You can calculate your increases using monthly, weekly, hourly or annual salary. Ensure both your current salary and increase are based on the same period of pay.

Is a salary increase the same as an increase in take-home pay?

No. A salary increase generally means an increase in your gross pay. Your actual take-home pay will depend on how much tax, insurance, retirement and other deductions you have.

What is a good salary increase percentage?

A good salary increase will depend on your industry, experience, responsibilities, company performance and market conditions. A 5-10% increase may be useful to compare hypothetical scenarios. However, salary increases can vary greatly. If you’re getting promoted or have a large change in responsibilities you may get a higher increase.