Money & FinanceSeptember 12, 20263 min read
How do you calculate a 20% raise?
Find your new salary and the yearly difference in three steps.
A raise adds a percentage of your current salary on top of it. Divide the percentage by 100 and add 1, and you can turn the old salary into the new one with a single multiplication.
The formula
New salary = Salary × (1 + Raise ÷ 100) Raise amount = Salary × Raise ÷ 100
A 20% raise on a 40,000 salary: 40,000 × 1.20 = 48,000. The raise is 8,000, and over 12 months that is 96,000 more.
Worth knowing
- Raises are usually applied to the gross salary; the change in take-home pay depends on your tax bracket.
- A 20% raise followed by a 10% raise is 32% in total, not 30%: 1.20 × 1.10 = 1.32.
- Enter a net salary in the calculator and the result is net; enter a gross one and it is gross.