Salary Increase Calculator
What a pay rise is worth per month and per year, before and after tax.
A raise is quoted as a percentage and felt as a monthly figure. A 4% rise on a large salary is worth more than a 10% rise on a small one, and tax decides how much of either actually arrives.
Enter your current salary, the rise and your effective tax rate, and this calculator shows the new salary, the increase per month and what you keep of it.
At a glance
- What you enter
- Current gross annual salary, Rise, Effective tax rate, Monthly essential expenses (optional)
- What you get
- New salary, Annual increase, Net increase per month, Net increase per year, New net monthly pay
- Formula shown
- Yes - every step, right below your results.
- Cost and privacy
- Free, no account needed, and nothing you type is stored.
See worked examples ↓ Read the FAQ ↓ Share this calculator ↓
Results are estimates for general information only - always verify with a professional or official source before acting on them.
How to use the Salary Increase Calculator
- 1 Enter Current gross annual salary
- 2 Enter Rise
- 3 Enter Effective tax rate - Tax and contributions as a share of gross pay.
- 4 Enter Monthly essential expenses (optional) - Used to show what the rise covers. Enter 0 to skip.
- 5 Press Calculate. You get New salary, Annual increase, Net increase per month, Net increase per year, New net monthly pay, and every intermediate step stays visible under “How is this calculated?”
- 6 Change one number at a time to see what moves the result - that is usually the most useful thing a calculator can tell you.
Worked examples
Real numbers run through this calculator. Open any example to load it into the form above and change it.
A 6% rise on $48,000 with a 28% effective tax rate
A standard annual increase for someone with modest monthly essentials.
You enter
- Current gross annual salary
- $48,000.00
- Rise
- 6%
- Effective tax rate
- 28%
- Monthly essential expenses (optional)
- $2,800.00
You get
- New salary
- $50,880.00
- Annual increase
- $2,880.00
- Net increase per month
- $172.80
- Net increase per year
- $2,073.60
- New net monthly pay
- $3,052.80
The new salary is $50,880, an increase of $2,880 a year or $240 a month before tax. Tax at 28% takes $806.40 of that, so you keep $2,073.60 a year, which is $172.80 a month in the hand. Take-home pay rises by 4.3% rather than 6%, and the net increase covers 6.2% of the $2,800 of monthly essentials. The new net monthly pay is $3,052.80.
A 3.5% rise on $92,000 with a 36% effective tax rate
A larger salary and a higher tax rate, where the percentage understates the money.
You enter
- Current gross annual salary
- $92,000.00
- Rise
- 3.50%
- Effective tax rate
- 36%
- Monthly essential expenses (optional)
- $5,200.00
You get
- New salary
- $95,220.00
- Annual increase
- $3,220.00
- Net increase per month
- $171.73
- Net increase per year
- $2,060.80
- New net monthly pay
- $5,078.40
The new salary is $95,220, up $3,220 a year or $268.33 a month gross. After tax of $1,159.20 you keep $2,060.80 a year, which is $171.73 a month, so the rise in take-home pay is 2.2% rather than 3.5%. The net increase covers only 3.3% of $5,200 of monthly essentials, because the tax rate is higher and the essentials are larger.
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Frequently asked questions
Should I use my marginal tax rate or my average rate?
Use an effective rate that reflects your whole situation, not the rate that applies to your last dollar. The rise is taxed at the margin in most systems, but it can also move an allowance, a credit or a benefit, and the calculator can only see the single number you give it.
A practical approach is to run it twice, once with your average rate and once with your marginal rate. The two answers bracket what the rise is likely to be worth, and the gap between them is the part that depends on rules this page does not model.
Why is the rise in take-home pay smaller than the headline percentage?
Because tax is taken from the increase as well as from the rest of the salary. A 6% rise on $48,000 is $2,880, and at a 28% effective rate you keep $2,073.60 of it, which is 4.3% of your take-home pay rather than 6%.
The rise in take-home line is the number to quote to yourself when you are deciding whether the extra work is worth it. A 3.5% rise at a 36% rate is worth 2.2% in the hand, and that is the figure that turns up in the bank each month.
Can I enter more than one rise to see the effect of a promotion?
Yes. The rise field accepts values well above a normal annual increase, so entering 15 or 25 shows what a promotion is worth on the same salary. A 15% rise on $48,000 is $7,200 a year, and at a 28% effective rate that is $432 a month rather than $600.
Keep in mind that a promotion usually changes other things as well: a bonus, a car allowance, a different pension rate or a move into a higher contribution band. Enter the total change to gross pay, not only the basic salary increase, or the answer will understate the difference.
What does the share of monthly expenses covered mean?
It divides the net monthly increase by the essential monthly expenses you enter, which shows how much of a month of essentials the rise pays for. On $2,800 of expenses a net increase of $172.80 covers 6.2% of them.
It is a reading, not a target. A rise that covers nothing on that line can still be worth taking for the salary it leads to later, and a rise that covers the whole month is unusual outside a large promotion. Treat it as a way of sizing the change rather than a verdict on it.