/Free Pay Rise Calculator
Not financial advice. Free tools for general information only. Speak to a qualified financial adviser before making significant financial decisions.

Free Pay Rise Calculator

Enter your current and new salary to instantly see the monthly and annual difference and your percentage increase. Note: actual take-home will depend on your tax situation.

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Pay Rise Calculator

Mr BudgetingMr B says: Before you spend the extra, decide where it goes. Increase your savings rate first, then use a portion for lifestyle. Future you will thank present you.
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Pay rise summary
Annual increase (gross)โ€”
Monthly increase (gross)โ€”
Percentage increaseโ€”

Note: actual take-home increase will be lower after tax. Check with your payroll team or a tax adviser for your exact net figure.

โš ๏ธ This tool is for general guidance only and is not financial advice.

Why the percentage can be misleading

A 5% pay rise sounds identical whether it's applied to a $50,000 salary or a $150,000 salary, but the dollar impact is completely different โ€” $2,500 versus $7,500 a year. When comparing offers or negotiating, it's worth looking at both figures: the percentage tells you how the increase compares to your current pay, while the dollar amount tells you what actually lands in your account.

Gross increase versus take-home increase

A pay rise is quoted in gross (pre-tax) terms, but what you actually notice in your bank account is the after-tax increase, which is smaller โ€” sometimes significantly smaller if the rise pushes part of your income into a higher tax bracket. This calculator shows the gross change; for a full picture of what lands in your account, run the new salary through your local tax calculator or payroll estimator alongside it.

Using the numbers in a negotiation

Framing a request in dollar terms rather than percentage terms often lands better in a negotiation, because it's concrete rather than abstract โ€” "an extra $400 a month" is easier to evaluate than "an 8% increase." Knowing both figures going in means you can present whichever framing suits the conversation, and quickly sanity-check any number an employer proposes.

Common questions

Pay rise questions

Subtract your old salary from your new salary, divide by your old salary, and multiply by 100. For example: ($75,000 โˆ’ $70,000) รท $70,000 ร— 100 = 7.14% increase. This calculator does it instantly once you enter both figures.
Anything above the rate of inflation preserves your purchasing power. In most years, 3โ€“5% is considered a reasonable cost-of-living adjustment. A merit-based rise for strong performance typically ranges from 5โ€“15%. Anything less than inflation is effectively a pay cut in real terms.
A higher salary may push some of your income into a higher tax bracket, which applies only to income above the bracket threshold โ€” not to your total income. Your overall effective tax rate will increase slightly. Use a tax calculator specific to your country or speak to a tax adviser for your exact take-home figure.
Before spending it, increase your savings rate or superannuation / pension contribution first. A common approach: use 50% to increase savings or pay off debt faster, and treat the other 50% as lifestyle improvement. The best time to automate a larger savings transfer is the day the new salary starts.