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Raise / Percentage Increase Calculator
Work out a raise percentage from two salaries, or a new salary from a raise percentage.
How this is calculated
Raise percentage = (new − old) ÷ old × 100. New salary = old × (1 + raise% ÷ 100). Works the same whether you're comparing annual salaries or hourly rates — just be consistent with the units on both sides.
Example: going from $50,000 to $54,000 is an 8% raise. Applying an 8% raise to $50,000 gives $54,000.
A raise that only keeps pace with inflation is a cost-of-living adjustment (COLA) — use the same formula, with the inflation rate as the raise percentage.
For context, Mercer's 2026 compensation survey found employers budgeting a 3.2% average merit increase — one data point on typical employer budgets, not a guarantee. Example: $22.00/hour to $22.66/hour is a 3.0% raise.
The formula is symmetric, so it works for a decrease too — $75,000 to $70,000 comes out to −6.67%. The most common mistake is calculating the percentage against the new number instead of the old one; the base of the percentage is always the starting salary.