Raise Calculator

How it is calculated

A raise is a percentage added to the current amount: increase = current × rate / 100 and new amount = current + increase. The rate is typed as a plain percentage number, so 4 means 4 percent. Both the new amount and the increase are shown in currency. The current amount must be zero or higher. A negative rate is accepted and works as a reduction, which is useful for cuts or discounts. The tool applies the percentage once; it does not compound over several years and does not account for tax, so the raise is the gross change in whatever you entered (salary, rent or a price).

Common mistakes

• Typing the rate as 0.04 instead of 4, which gives a raise of only 0.04 percent.
• Mixing percent and percentage points: going from a 3 percent rate to 4 percent is a rise of 1 point but about 33 percent in relative terms.
• Expecting the net pay to rise by the same percent; tax brackets and deductions change the take-home amount.
• Applying two successive raises by adding the percentages: 4 percent and then 5 percent is about 9.2 percent, not 9, because the second applies to the new amount.
• Entering a monthly figure and comparing the result with an annual one.