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How To Calculate Raise Percentage Increase

Raise Percentage Formula:

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

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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 and helps employees understand the relative value of their salary increase.

2. How Does the Calculator Work?

The calculator uses the raise percentage formula:

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

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 Raise Percentage

Details: Understanding your raise percentage helps you evaluate job offers, negotiate salaries, and track career progression. It provides a standardized way to compare raises regardless of salary level.

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 raise percentage differ from absolute raise?
A: Percentage shows relative increase (better for comparison), while absolute shows dollar amount (better for budgeting).

Q3: Should bonuses be included in this calculation?
A: Only if comparing total compensation. For base salary comparisons, use base salary amounts only.

Q4: What if my salary decreased?
A: The formula 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 salary changes significantly to track your career progression.

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