How to Calculate a Pay Rise as a Percentage
Whether you have just received a pay rise and want to know what percentage it represents, or you are preparing for a salary negotiation and need to work backwards from a target, the calculation is the same: it is a percentage change from your old salary to your new one. Enter the two figures below for an instant result.
Enter your current salary in the first field and your new salary in the second. The result is your pay rise as a percentage.
The formula
- Subtract your old salary from your new salary to find the cash increase.
- Divide the cash increase by your old salary.
- Multiply by 100 to express as a percentage.
Example: Your salary rises from £32,000 to £34,560.
Difference = £34,560 − £32,000 = £2,560
Divided by old salary: £2,560 ÷ £32,000 = 0.08
Result = 0.08 × 100 = 8% pay rise
Worked examples
| Current salary | New salary | Cash rise | % rise |
|---|---|---|---|
| £25,000 | £26,250 | £1,250 | 5% |
| £32,000 | £33,600 | £1,600 | 5% |
| £40,000 | £42,000 | £2,000 | 5% |
| £55,000 | £58,850 | £3,850 | 7% |
| £70,000 | £76,300 | £6,300 | 9% |
| $50,000 | $53,500 | $3,500 | 7% |
| $75,000 | $81,000 | $6,000 | 8% |
| $100,000 | $110,000 | $10,000 | 10% |
| €45,000 | €47,250 | €2,250 | 5% |
| €60,000 | €64,800 | €4,800 | 8% |
How to calculate your new salary from a percentage rise
If you have been offered a 6% pay rise and want to know your new salary, multiply your current salary by (1 + percentage / 100).
| Current salary | Rise offered | New salary |
|---|---|---|
| £28,000 | 3% | £28,840 |
| £35,000 | 5% | £36,750 |
| £45,000 | 7% | £48,150 |
| £60,000 | 10% | £66,000 |
| $65,000 | 4% | $67,600 |
| $90,000 | 8% | $97,200 |
Is your pay rise keeping up with inflation?
A pay rise only improves your standard of living if it exceeds the rate of inflation. If prices rise by 4% and your salary rises by 3%, you are effectively taking a 1% real-terms pay cut — your purchasing power has fallen.
To find out whether your rise beats inflation:
- Calculate your pay rise percentage using the formula above.
- Look up the current inflation rate (CPI or RPI in the UK; CPI in the US and EU).
- Subtract the inflation rate from your pay rise percentage.
A positive result means a real-terms increase. A negative result means your buying power has fallen despite the rise.
| Pay rise | Inflation | Real-terms change | What it means |
|---|---|---|---|
| 7% | 3% | +4% | Good real rise |
| 5% | 5% | 0% | Standing still |
| 3% | 5% | −2% | Real-terms pay cut |
| 2% | 7% | −5% | Significant cut in buying power |
| 10% | 4% | +6% | Strong real increase |
What is a good pay rise percentage?
There is no single right answer, but here are the benchmarks most employers and employees use:
- Cost-of-living adjustment (1–3%) — the minimum most employers offer to keep pace with inflation in a low-inflation environment. In a high-inflation period this may still represent a real-terms cut.
- Merit or performance rise (3–6%) — awarded for solid performance. This is the most common range in annual pay reviews in the UK and US.
- Above-average performance (6–10%) — reserved for top performers or roles where the employer is keen to retain the employee.
- Promotion rise (10–20%+) — a step up in seniority or responsibility typically warrants a double-digit increase. Below 10% for a genuine promotion is generally considered low.
- New-job jump (10–25%) — moving to a new employer is the most reliable route to a large percentage increase. Most people change jobs for between 10% and 25% more than their current salary.
Negotiating a pay rise: what percentage to ask for
When preparing a negotiation, anchor high to give yourself room to settle. These are common-sense guidelines, not guarantees:
- Research first. Know the market rate for your role, level, and location. Salary survey sites, job postings for equivalent roles, and professional networks all give data points.
- Ask for more than you expect. If you want 8%, ask for 10–12%. Employers rarely offer the first figure as a final answer; they expect to negotiate.
- Express the number in percentage and cash. “I am asking for a 10% increase, which would take my salary from £40,000 to £44,000” is clearer and harder to dismiss than a percentage alone.
- Time it well. Ask after a visible win, during or just before annual review season, or when you have a competing offer.
- Know your walkaway point. Decide in advance the minimum percentage you will accept before the conversation starts.
FAQ
How do I calculate a pay rise percentage?
Subtract your old salary from your new salary, divide by your old salary, then multiply by 100. For example, from £30,000 to £31,500: (1,500 ÷ 30,000) × 100 = 5%.
What is a 5% pay rise on £30,000?
£30,000 × 1.05 = £31,500. The cash rise is £1,500.
What is a 5% pay rise on £35,000?
£35,000 × 1.05 = £36,750. The cash rise is £1,750.
What is a 10% pay rise on $60,000?
$60,000 × 1.10 = $66,000. The cash rise is $6,000.
Is a 3% pay rise good?
It depends on inflation. If inflation is running at 2%, a 3% rise represents about 1% real growth in buying power — reasonable but modest. If inflation is 5%, a 3% rise is a real-terms pay cut of around 2%.
What percentage rise do you get when changing jobs?
Research consistently shows that changing employers yields a larger pay rise than staying. Most people who switch roles move for a 10–25% increase. The precise figure depends on your sector, seniority, and the strength of the job market at the time.
My employer gave me a cash rise but not a percentage. How do I convert it?
Divide the cash rise by your old salary and multiply by 100. If your salary goes from $52,000 to $54,600, the cash rise is $2,600. $2,600 ÷ $52,000 × 100 = 5%. Use the calculator at the top of this page to do this instantly.
How is a pay rise different from a bonus?
A pay rise permanently increases your base salary, so it compounds over time — future rises and pension contributions are calculated on the higher figure. A bonus is a one-off payment and does not change your base salary. A 5% bonus this year is worth less over a career than a 5% permanent salary increase.
Use the Percentage Change Calculator to check any salary figures instantly.