Calculate your pay rise
Enter your current salary and choose how you want to calculate the increase. You can work from a percentage rise, a fixed annual increase or a proposed new salary.
How the pay rise calculator works
A pay rise can be calculated from a percentage, a fixed amount or a target salary. The calculator works backwards or forwards depending on the value you enter.
The result is based on gross pay, so it does not automatically show tax, National Insurance, pension or student loan deductions. For an after-tax estimate, use the take-home pay calculator after you know the new salary.
percentage rise:
increase = current salary × percentage
new salary = current salary + increase
fixed increase:
new salary = current salary + increase
new salary:
increase = new salary - current salary
percentage change = increase ÷ current salary × 100
Pay rise vs inflation
A salary can rise in pounds but still lose spending power if prices rise faster. The real-terms comparison adjusts your pay rise for the inflation rate you enter.
For example, if salary rises by 4% but inflation is 5%, your pay is higher in cash terms but lower in spending-power terms. This is why a pay rise should be checked against inflation as well as the headline percentage.
real-terms change =
((new salary ÷ old salary) ÷ (1 + inflation rate)) - 1
Compare salary against inflation
Use the salary inflation calculator for a more focused real-terms salary comparison over time.
Example pay rise calculations
These examples show how percentage increases, fixed increases and target salaries translate into annual and monthly changes.
| Current salary | Change | New salary | Annual increase | Monthly increase |
|---|---|---|---|---|
| £30,000 | 5% | £31,500 | £1,500 | £125 |
| £45,000 | New salary £50,000 | £50,000 | £5,000 | £416.67 |
| £35,000 | £2,000 increase | £37,000 | £2,000 | £166.67 |
Gross pay rise vs take-home pay rise
A gross pay rise is not the same as your take-home increase. Once Income Tax, National Insurance, pension contributions and student loan repayments are applied, the amount reaching your bank account can be lower than the headline increase.
If you are comparing a new job offer, use this calculator first to work out the gross increase, then use the take-home pay calculator to estimate the monthly net change.
Check your new take-home pay
Enter the new salary into the take-home calculator to estimate the after-tax result.
What to check before accepting a new salary
- Monthly net pay: check the after-tax amount, not just the annual salary.
- Pension contribution: a better pension can make a lower salary more valuable.
- Hours worked: a higher salary can be less attractive if hours are much longer.
- Travel costs: commuting can reduce the real value of a pay rise.
- Inflation: compare the pay rise against price rises to understand spending power.
- Bonus structure: guaranteed salary and discretionary bonus are not the same.
Convert salary to hourly value
Compare the new salary against working hours to see the hourly equivalent.
Related salary glossary terms
These terms help explain salary changes, gross pay and real take-home income.
Pay rise FAQs
Is the pay rise result before tax?
Yes. This calculator shows gross salary change. Use the take-home pay calculator to estimate what reaches your bank account after deductions.
How do I work out a 5% pay rise?
Multiply your current salary by 0.05, then add that amount to your salary. For £30,000, a 5% rise is £1,500, giving £31,500.
Can I calculate a pay cut?
Yes. Enter a new salary below your current salary, or enter a negative fixed amount. The calculator will show a negative change.
What inflation rate should I use?
Use a rate that matches the period you are comparing. For a rough estimate, use the annual inflation figure you want to test against.