1. What is Raise Percentage?

Raise percentage is a financial metric that calculates the percentage increase in salary from an old salary to a new salary. It helps employees and employers understand the magnitude of salary changes during promotions, annual reviews, or job changes.

2. How Does the Calculator Work?

The calculator uses the raise percentage formula:

Where:

• \( \text{New Salary} \) — The updated or proposed salary amount
• \( \text{Old Salary} \) — The original or current salary amount

Explanation: The formula calculates the relative increase as a percentage of the original salary, providing a standardized way to compare salary changes across different income levels.

3. Importance of Raise Percentage Calculation

Details: Understanding raise percentage is crucial for career planning, salary negotiations, and financial forecasting. It helps employees assess whether salary increases keep pace with inflation and career growth expectations.

4. Using the Calculator

Tips: Enter both old and new salary amounts in the same currency. Ensure both values are positive numbers. The calculator will automatically compute the percentage increase.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good raise percentage?
A: A good raise percentage typically ranges from 3-5% for cost-of-living adjustments, while promotions may offer 10-20% or more depending on the role and industry.

Q2: How does raise percentage differ from absolute raise amount?
A: Raise percentage shows relative increase, while absolute amount shows the actual dollar increase. Percentage is better for comparing across different salary levels.

Q3: Can the calculator handle salary decreases?
A: Yes, if the new salary is lower than the old salary, the calculator will show a negative percentage indicating a salary reduction.

Q4: Should bonuses be included in salary calculations?
A: For accurate year-over-year comparisons, include consistent compensation elements. Some analyses separate base salary from variable compensation like bonuses.

Q5: How often should I calculate my raise percentage?
A: Calculate after each salary change, during annual reviews, or when considering job offers to track your career progression and market value.