Pay Rise Calculator: work out a percentage pay rise in pounds
This pay rise calculator shows what a percentage rise is worth each year, month, week and hour, before tax. You can also work backwards from a new salary or a target salary to find the percentage.
All figures are gross, which means before income tax, National Insurance, pension contributions and student loan deductions. Nothing you enter leaves this page.
For HR teams: apply one percentage to several salaries
Enter or paste up to 20 salaries to see each new salary and the total annual cost of the rise. This is useful for costing a pay review for a team.
How the percentage pay rise calculator works
The tool uses three short formulas. Each mode is the same sum arranged a different way.
New salary = current salary × (1 + pay rise percentage ÷ 100)
Pay rise percentage = (new salary − current salary) ÷ current salary × 100
Rise needed = target salary − current salary
The monthly figure is the annual figure divided by 12. The weekly figure is the annual figure divided by 52. The hourly figure is the weekly figure divided by the hours you work in a week. Employers can use slightly different divisors, such as 52.143 weeks or 260 working days, so a payslip may differ by a few pence.
Worked example: a 4% pay rise on £32,000
Take a salary of £32,000 and a pay rise percentage of 4%. The rise is £32,000 × 0.04 = £1,280 a year, so the new salary is £33,280. That is £106.67 more each month and £24.62 more each week, before tax. On a 37.5 hour week the hourly rate moves from £16.41 to £17.07, a rise of £0.66 an hour. If the rise is backdated by three months, the gross back pay owed is 3 × £106.67 = £320.00. Enter the same numbers in the calculator above and you will see the same results.
Real-terms pay: comparing a rise with inflation
A rise is a real-terms increase when it is higher than inflation over the same period. If you enter an inflation rate, this salary increase calculator shows whether your rise is above or below it and gives the real-terms change. The real-terms change is (1 + pay rise) ÷ (1 + inflation) − 1. For example, a 4% rise set against an inflation rate of 3% is a real-terms rise of about 0.97%. The tool does not store an inflation rate because the figure changes every month. The Office for National Statistics publishes the CPI annual rate in its consumer price inflation bulletin.
Backdated pay
When a pay award is agreed late, the employer normally pays the difference for the months already worked. The calculator multiplies the monthly gross difference by the number of months you enter. Back pay is taxed when it is paid, so the amount that reaches your bank account will be lower than the gross figure.
This page gives general information and gross arithmetic. It is not tax or financial advice.
Questions about pay rise percentages
How do I calculate a pay rise percentage?
Subtract your old salary from your new salary, divide the answer by your old salary, then multiply by 100. For example, a move from £32,000 to £33,280 is a rise of £1,280. £1,280 divided by £32,000 is 0.04, which is a 4% pay rise. The pay rise calculator on this page does this in the second mode.
What is a 5% pay rise on £30,000?
A 5% pay rise on £30,000 is £1,500 a year, which gives a new salary of £31,500. That is £125.00 more each month and £28.85 more each week, before tax.
How much is a 3% pay rise per month?
It depends on your salary. Multiply your annual salary by 0.03 and divide by 12. On £28,000 a 3% rise is £840 a year, which is £70.00 a month before tax. On £40,000 it is £1,200 a year, which is £100.00 a month before tax.
Is my pay rise above inflation?
Your rise is above inflation when the percentage is higher than the inflation rate for the same period. A 4% rise when inflation is 3% is a real-terms rise of about 0.97%. A 2% rise when inflation is 3% is a real-terms fall of about 0.97%. Check the current CPI annual rate on the Office for National Statistics website and enter it in the calculator.
How is backdated pay calculated?
Work out the monthly difference between your old and new gross pay, then multiply it by the number of months the rise is backdated. A 4% rise on £32,000 is £106.67 a month, so three months of back pay is £320.00 before tax.
Does this calculator show take-home pay?
No. It shows gross pay only. Your take-home pay after a rise depends on your tax code, National Insurance, pension contributions and any student loan, so the increase you see in your bank account will be smaller than the gross figure.
Related tools
Use this pay rise calculator to see what a percentage pay rise is worth each year, month, week and hour. It compares your rise with inflation and works out backdated pay, and it shows the working.