How the raise is calculated

The dollar increase is new annual gross pay minus current annual gross pay. The raise percentage divides that change by current pay. Monthly and weekly changes are annual equivalents divided by 12 and by the entered paid weeks. Hourly equivalents divide annual pay by paid weeks and weekly hours.

Gross pay is not take-home pay

The calculator does not estimate federal, state, local, payroll, or other taxes. Retirement contributions, health premiums, bonuses, commissions, equity, paid leave, and employer benefits can also change the value of an offer. Use the output to compare gross base pay, then review the complete compensation package and applicable withholding.

Inflation changes the real increase

The real raise compares the salary growth factor with the entered inflation factor. Subtracting inflation directly from the raise percentage is only an approximation. A nominal raise can still represent a loss of purchasing power when prices rise faster than pay.

Hours and paid weeks matter

An annual salary may look higher while requiring more hours, fewer paid weeks, a longer commute, or unpaid availability. The hourly equivalent helps normalize scheduled time but does not value workload intensity, job security, flexibility, travel, training, or career growth.

Compare recurring and one-time compensation separately

A signing bonus or temporary differential is not the same as a permanent base-pay increase. Base pay can affect future raises, overtime rules, retirement contributions, and benefits, while variable compensation may depend on targets or continued employment. Model guaranteed annual pay here and document other compensation separately.

This calculator provides general educational arithmetic, not employment, financial, tax, benefits, negotiation, or legal advice. It does not determine fair pay or predict future inflation.