How to calculate a salary increase percentage
Quick answer
To find the percentage increase: (new salary − old salary) / old salary x 100. To find a new salary from a known percentage raise: old salary x (1 + percentage/100). A 5% raise on $1,000 gives $1,050.
- 1Know old and new salary, want the percentage: (new − old) / old x 100.
- 2Know old salary and the raise percentage, want the new salary: old x (1 + percentage / 100).
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A "salary increase percentage" question is actually two different calculations depending on what you already know. If you have both the old and new salary and want the percentage, that is a straightforward percentage-increase calculation. If you have the old salary and a percentage you have been offered and want to know the resulting new salary, that is the same formula worked the other way.
Both directions are common - the first when checking whether a raise matches what you agreed on, the second when a percentage is offered before the new number is confirmed.
Step by step
Old and new salary known, want the percentage
Use "Percentage increase" mode: enter the original value and the new value.
Percentage CalculatorOld salary and percentage known, want the new salary
Use "What is X% of Y?" mode with X set to 100 plus your raise percentage - for a 5% raise, that is "what is 105% of [old salary]".
Percentage Calculator
Tips
- A $20,000 salary rising to $25,000 is a 25% increase - not 20%, which is the easy mistake of dividing by the new salary instead of the old one.
- The "105% of old salary" trick for a 5% raise works because 100% is the salary you already have, and the extra 5% is what is being added - one calculation instead of two.
Common problems
The percentage looks smaller than it should.
Divide the difference by the OLD salary, not the new one - dividing by the new (larger) salary understates the percentage increase.
Frequently asked questions
- What is the formula for a salary increase percentage?
- (new salary − old salary) / old salary, multiplied by 100.
- How do I find my new salary from a percentage raise?
- Multiply your old salary by (1 + the raise percentage as a decimal) - a 7% raise on $50,000 is $50,000 x 1.07 = $53,500.
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