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Salary Raise Percentage Calculator

Raise Percentage Formula:

\[ \text{Raise Percentage} = \left( \frac{\text{New Salary} - \text{Old Salary}}{\text{Old Salary}} \right) \times 100\% \]

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1. What is Salary Raise Percentage?

The salary raise percentage measures how much a salary has increased compared to its previous amount. It's expressed as a percentage of the original salary and helps employees understand the relative value of their raise.

2. How Does the Calculator Work?

The calculator uses the raise percentage formula:

\[ \text{Raise Percentage} = \left( \frac{\text{New Salary} - \text{Old Salary}}{\text{Old Salary}} \right) \times 100\% \]

Where:

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

3. Importance of Calculating Raise Percentage

Details: Understanding your raise percentage helps you evaluate job offers, negotiate salaries, and assess whether your salary growth keeps pace with inflation and industry standards.

4. Using the Calculator

Tips: Enter both old and new salary amounts in dollars. The calculator will show 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 standard for cost-of-living adjustments, while 10%+ may indicate a promotion or significant role change.

Q2: How does this differ from absolute raise amount?
A: Percentage shows relative change, while absolute amount shows dollar difference. A $5,000 raise means more to someone earning $50,000 (10%) than $100,000 (5%).

Q3: Should bonuses be included in this calculation?
A: For base salary comparisons, exclude bonuses. For total compensation analysis, include all forms of compensation.

Q4: What if my salary decreased?
A: The calculator will show a negative percentage, indicating a pay cut rather than a raise.

Q5: How often should I calculate my raise percentage?
A: Annually, or whenever your compensation changes. Tracking over time helps assess career progression.

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