1. What is Raise Percentage?

The raise percentage measures how much a salary has increased compared to the original salary. It's expressed as a percentage of the original salary and is commonly used in salary negotiations and compensation planning.

2. How Does the Calculator Work?

The calculator uses the raise percentage formula:

Where:

• New Salary — The proposed or new salary amount
• Current Salary — The original or current salary amount

Explanation: The formula calculates the difference between the new and current salary, divides it by the current salary to get the relative increase, then converts it to a percentage by multiplying by 100.

3. Importance of Raise Percentage

Details: Understanding your raise percentage helps in evaluating job offers, negotiating salaries, and comparing compensation changes over time. It provides a standardized way to compare salary increases regardless of the actual dollar amounts.

4. Using the Calculator

Tips: Enter both current and new salary amounts in dollars. The calculator will automatically compute the percentage increase. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good raise percentage?
A: Typically, 3-5% is considered a standard annual raise. Promotions or job changes might warrant 10-20% or more.

Q2: How does this differ from cost-of-living adjustments?
A: Cost-of-living adjustments maintain purchasing power, while raise percentages reflect actual increases in compensation.

Q3: Should I include bonuses in salary calculations?
A: For consistent comparison, it's best to use base salary. Bonuses can be calculated separately.

Q4: How do I calculate the reverse (salary from percentage)?
A: New Salary = Current Salary × (1 + (Raise Percentage/100))

Q5: Does this work for pay cuts too?
A: Yes, the formula will show a negative percentage if the new salary is lower than the current salary.