Pay rise calculator
What a raise really means, as a percentage and in money per year.
Calculator inputs
Results
Enter your values and press “Calculate” to see the result.
In short
- What it calculates
- What a raise really means, as a percentage and in money per year.
- Formula used
Increase % = (new − current) / current × 100- Example
- From £2,000 to £2,200:
Pay rise calculator
It works both ways: give the new salary and it returns the percentage, or give the percentage and it returns the new salary. The annual difference is the figure worth keeping in mind when negotiating.
How it works
Fill in either the new salary or the percentage, not both. The percentage increase is always calculated against the current salary.
Formula
Increase % = (new − current) / current × 100
New salary = current × (1 + increase/100)
Annual difference = monthly difference × 12
Worked example
From £2,000 to £2,200:
Increase: 10%
Monthly difference: £200
Annual difference: £2,400
Explanation
A rise below inflation is a cut
If you get two per cent and prices have risen three, your purchasing power has fallen one per cent. The payslip says more money and the weekly shop says fewer goods. When negotiating, start from inflation accumulated since your last review, not last month's figure.
Gross and net do not rise equally
A gross increase can push you into a higher income tax band, so the net increase is smaller than the announced percentage. Only the part falling into the new band is taxed at the higher rate, so you never take home less for earning more, but the net percentage does end up below the gross.
What the percentage does not show
Holiday days, remote working, paid training, health insurance, pension contributions or flexible hours all carry real economic value. A three per cent rise with two extra holiday days can be worth more than five per cent with nothing.
The base matters more than the percentage
Ten per cent on a low salary can be less money than three per cent on a high one. When comparing offers, compare full annual amounts, not percentages.
Frequently asked questions
Is a rise below inflation a real increase?
No. If inflation is 3% and your rise is 2%, your purchasing power falls by 1%.
Should I compare gross or net?
Negotiations happen in gross terms, but check the net figure too: tax bands can absorb part of the rise.
Can a pay rise leave me with less net pay?
No. Only the portion of salary entering the higher band is taxed at that rate, so more gross always means more net, even if the net percentage rise is smaller.
Which inflation figure should I compare against?
The one accumulated since your last salary review, not the monthly figure. If you have gone two years without a rise, it is those two years.
Need to calculate something else?
These tools are often used alongside this calculator.
Annual salary
Convert your monthly pay into an annual figure, extra payments included.
Percentage increase
Apply a percentage rise to any amount and see the exact difference.
Inflation
What your money will be worth in a few years at a given inflation rate.
Hourly rate
Turn your monthly salary into the real value of every hour you work.
Overtime
What your overtime hours should pay given the uplift that applies.