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.
Pay Rise Calculator
Mr 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)—
Monthly increase (gross)—
Percentage increase—
Note: actual take-home increase will be lower after tax. Check with your payroll team or a tax adviser for your exact net figure.
⚠️ This tool is for general guidance only and is not financial advice.
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 − $70,000) ÷ $70,000 × 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, 3–5% is considered a reasonable cost-of-living adjustment. A merit-based rise for strong performance typically ranges from 5–15%. 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 — 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.