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How to Calculate a Salary Increase

📅 Last Updated: August 2026 • ✍️ By ResumeMetric Engineering & HR Specialists

Whether you are negotiating a raise or evaluating a new job offer, you need to know exactly how much your salary is changing. Don't just look at the lump sum—calculate the percentage change to see if it truly beats inflation.

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How do you calculate a salary increase percentage?

To calculate a salary increase percentage, subtract your old salary from your new salary to find the difference. Divide that difference by your old salary, then multiply by 100.

Percentage Increase = ((New Salary - Old Salary) / Old Salary) * 100

Example: If you move from $60,000 to $75,000, the difference is $15,000. Divide $15,000 by $60,000 (0.25) and multiply by 100. Your raise is 25%.

What is a good annual salary increase?

A standard annual raise to keep up with inflation is typically 3% to 5%. However, if you are changing jobs or getting promoted, a 10% to 20% increase is standard. Anything below 3% is effectively a pay cut when adjusted for inflation.

How do I calculate the monthly difference of a raise?

Simply divide your annual salary difference by 12. Use our Salary Increase Calculator to instantly see how your new annual salary impacts your monthly take-home pay.

RM

Written by ResumeMetric Engineering & HR Team

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