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Pay & raises · calculator

Pay raise calculator

A raise as a percentage or a dollar amount, hourly or yearly — the new pay, the percent, and what it means per month, per paycheck and per hour.

Current hourly rate
$24.50
Raise
3.5%
Hours a week · weeks
40 · 52

Your raise

Example
3.50% raise$25.36 an hour+$1,783.60 a yearFull result
Your pay is
You know

Like 24.50 or $24.50/hr

%

A pay cut: type a minus, like −2.

The work year
h
weeks

= 2,080 hours a year. Payroll’s usual convention is 2,080 (40 × 52).

After the raise

New pay

$25.36an hour

+$0.86 an hour, a 3.50% raise

3.50%: $24.50 becomes $25.36 an hour.

RuleArithmetic — new pay = old pay × (1 + raise %); raise % = (new − old) ÷ old; payroll year 2,080 hoursSources checked How the math works ↓

Before and after

Pay before and after, per period
PerBeforeAfter (change)Change
Year$50,960.00$52,743.60+$1,783.60+$1,783.60
Month$4,246.67$4,395.30+$148.63+$148.63
2 weeks$1,960.00$2,028.60+$68.60+$68.60
Week$980.00$1,014.30+$34.30+$34.30
Hour$24.50$25.36+$0.86+$0.86

The yearly row applies the raise to the yearly amount (2,080 hours); the hourly rate is rounded to the cent, so $25.36 × 2,080 hours = $52,748.80, a little different. The percentage is rounded to two places.

The raise, step by step

  1. Before$24.50 an hour

    • $24.50your pay now

  2. After$25.36 an hour

    • $24.50the same pay
    • +$0.86the raise, 3.50%
Both bars share one dollar scale. The outlined step is the change; its length is 3.50% of the bar before it.

Zoomed in: $21.92 to $25.36 an hour

Before $24.50, after $25.36: only the last $3.44 of each bar, so the $0.86 step is easy to see. The bars above are to scale.

Calculated with Punch Clock Math · rules checked October 22, 2026 · an estimate, not legal or tax advice · punchclockmath.com

How the math works

Plain arithmetic in whole cents, rounded once per figure.

  1. A percentage raiseNew pay = old pay × (1 + %). $24.50 + 3.5% = $25.36 an hour (25.3575, rounded); $50,960.00 a year + 3.5% = $52,743.60.The yearly figure applies the raise to the yearly pay, so it is exact; the hourly rate is rounded to the cent.
  2. The percentage from two amounts(New − old) ÷ old. $48,000 → $51,000 = 6.25%; $18.00 → $19.25 = 6.94%.
  3. Hourly and yearlyA year = hours a week × paid weeks; payroll’s convention is 2,080 hours (40 × 52).29 CFR 778.113 · Fact Sheet: Computing Hourly Rates of Pay Using the 2,087-Hour Divisor
  4. Every periodMonth = year ÷ 12, two weeks = year ÷ 26, week = year ÷ 52.29 CFR 778.113 · Fact Sheet: Computing Hourly Rates of Pay Using the 2,087-Hour Divisor

What this doesn’t cover

  • Taxes and take-home pay: all figures are gross; a raise can change withholding and benefits.
  • Inflation: the tool doesn’t compare the raise with price changes.
  • Overtime and bonuses: not included; the regular rate calculator handles bonuses and two rates.
  • Raises during the year: a raise that starts partway through a year is not prorated.

  • Guide · Pay & tax

    How to Calculate a Pay Raise Percentage

    Raise % = (new pay − old pay) ÷ old pay × 100. Worked hourly and yearly examples, why two 5% raises aren’t 10%, overtime after a raise and real raises.

    Updated · 4 min read

Page sources

Every rule above comes from these pages, read on the dates shown.

  1. 29 CFR 778.113eCFR (Office of the Federal Register / GPO) · read
  2. Fact Sheet: Computing Hourly Rates of Pay Using the 2,087-Hour DivisorU.S. Office of Personnel Management · read