Quick answer: new pay = current pay x (1 + raise % / 100). A 4% raise on 55,000 is 2,200 more, 57,200 a year. To find the percent of a raise you were given, divide the increase by the old pay: 20.00 to 21.50 an hour is 7.5%.
Common raises on 55,000 a year and 20 an hour
| Raise | Yearly increase on 55,000 | New salary | New rate from 20.00/h |
|---|---|---|---|
| 2% | 1,100.00 | 56,100.00 | 20.40 |
| 3% | 1,650.00 | 56,650.00 | 20.60 |
| 4% | 2,200.00 | 57,200.00 | 20.80 |
| 5% | 2,750.00 | 57,750.00 | 21.00 |
| 6% | 3,300.00 | 58,300.00 | 21.20 |
| 8% | 4,400.00 | 59,400.00 | 21.60 |
| 10% | 5,500.00 | 60,500.00 | 22.00 |
Raises compound
Each raise applies to pay that already includes the last one. Three 4% raises add 12.49% in total, not 12% (1.04 x 1.04 x 1.04 = 1.1249). Use the repeat option in the calculator to see each year. If a raise was backdated, the back pay calculator works out what you are owed for the hours already paid.
Percent or flat amount?
A flat raise (say 1.00 an hour for everyone) is a bigger percentage for lower-paid staff: 6.7% on 15.00 but 3.3% on 30.00. When comparing offers or a raise against inflation, convert both to percent.
Merit increase, cost-of-living raise and pay cut
A merit increase and a cost-of-living adjustment (COLA) are both a percent applied to current pay; enter the percent your employer gives. A pay cut works the same way with a negative percent: a 5% cut on 55,000 is 52,250. To express a one-time bonus as a percentage, divide it by yearly pay: a 2,750 bonus on 55,000 is 5%.
If the raise was backdated, the back pay calculator works out what you are owed. To compare the new pay in every period, use the hourly rate and wage calculator.
Formula and examples checked . Found a problem? Tell us.
Questions
What is a 3% raise on 50,000?
1,500 more a year, for a new salary of 51,500.
What is a 5% raise on 18 an hour?
0.90 more, for 18.90 an hour.
How do repeated raises add up?
They compound: each raise is on the already raised pay. Three 4% raises are 12.49% in total, not 12%. Use the repeat option to see each year.