Raise percentage formulas
- New pay = current pay × (1 + raise % ÷ 100)
- Raise % = (new pay − current pay) ÷ current pay × 100
- Hourly to yearly = hourly rate × hours per week × 52
Worked example: 3% raise on $25 an hour
$25 an hour, 40 hours a week, 3% raise
- Raise
- 3.0%
- Extra per year (gross)
- $1,560
- Extra per month after federal tax
- $104
| Before | After | Difference | |
|---|---|---|---|
| Per year (gross) | $52,000 | $53,560 | $1,560 |
| Per month (gross) | $4,333 | $4,463 | $130 |
| Every two weeks (gross) | $2,000 | $2,060 | $60 |
| Per year after federal tax + FICA | $43,962 | $45,215 | $1,253 |
| Per month after federal tax + FICA | $3,664 | $3,768 | $104 |
Raise vs inflation
To keep the same buying power, a raise has to match the rise in consumer prices over the year. Compare your raise with the latest 12-month CPI change from the Bureau of Labor Statistics before deciding whether it is a real increase.