Raise Percentage Formula:
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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.
The calculator uses the raise percentage formula:
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.
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.
Tips: Enter both old and new salary amounts in dollars. The calculator will show the percentage increase. Both values must be positive numbers.
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.