Salary Increase Calculator
This salary increase calculator works three ways: from the percentage, from the raise amount or from the new salary. It shows the new pay, the yearly difference and the hourly rate. With the inflation rate you also see what is really left after prices have risen.
Example: Current salary 3,500 · The raise is given as: a percentage · Raise in percent 5 % · Salary payments per year: 12 monthly payments · Projection over 5 years → New salary per month: 3,675.00. Source: Statistisches Bundesamt (Destatis) (Federal Statistical Office of Germany) – consumer price index and inflation rate (basis of the purchasing power calculation). Updated: .
How it is calculated
A raise in percent is (new salary − old salary) ÷ old salary × 100. If a monthly salary goes from 3,500 to 3,675, that is 175 more, or 5 percent. In reverse, the new salary is the old salary times (1 + percentage ÷ 100): 3,500 × 1.05 = 3,675.
What the tool calculates
- Three inputs: you give the percentage, the amount or the new salary; the other two values are calculated.
- Yearly pay: with 12, 13 or 14 payments, so that bonus months are included in the yearly total.
- Hourly rate: yearly pay divided by 52 weeks times hours per week, before and after.
- Real raise: with 2 percent inflation, 5 percent more pay is about 2.9 percent more purchasing power, using (1 + raise) ÷ (1 + inflation) − 1. If the raise is lower, your purchasing power falls despite higher pay.
- Projection: if you got the same raise every year, the table shows pay and purchasing power over the years you choose.
Gross and net
All amounts are gross. How much of a raise arrives after taxes and contributions depends on your tax situation. To work out an hourly rate from a monthly salary use the hourly rate to salary calculator, to price extra hours the overtime calculator, and for percentages in general the percentage calculator. The effect of inflation over the years is shown by the inflation calculator.
Frequently asked questions
How do I calculate a salary increase in percent?
New salary minus old salary, divided by the old salary, times 100. From 3,500 to 3,675 that is 175 ÷ 3,500 × 100 = 5 percent.
What is a 3 percent raise on 3,000?
3,000 × 1.03 = 3,090, so 90 more per month and 1,080 more per year with twelve payments.
What does real raise mean?
The raise after deducting inflation. With 4 percent more pay and 3 percent inflation, only about 0.97 percent gain in purchasing power remains.
How big a raise do I need to offset inflation?
At least the inflation rate. If prices rise 2.5 percent, pay must grow 2.5 percent to keep your purchasing power the same.
Is the raise gross or net?
Gross here. Because taxes and contributions rise with higher income, the net gain is usually smaller than the percentage suggests.
Sources and legal basis
- Statistisches Bundesamt (Destatis) (Federal Statistical Office of Germany) – consumer price index and inflation rate (basis of the purchasing power calculation)
- Wikipedia – Real wages (reale Veränderung = (1 + nominal) ÷ (1 + Inflation) − 1)
- Wikipedia – Percentage change (Veränderung in Prozent)
As of: · Editorial policy
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