Hourly Raise Calculator
Enter your hourly rate and the raise you are getting — in dollars or as a percentage — and see your new rate, weekly pay, annual salary and take-home increase.
Compare another percentage, dollar increase or new salary with the pay raise calculator.
How an hourly raise becomes an annual salary
An hourly increase can be converted to annual pay by multiplying it by the paid hours and weeks. Use your own schedule rather than assuming every worker earns 2,080 hours of pay.
Annual pay = hourly rate × hours per week × 52
At 40 hours a week that is 2,080 hours a year, so every extra dollar an hour is worth $2,080 before tax. A 50-cent raise is $1,040; $2.50 an hour is $5,200. Going from $20.00 to $21.00 takes you from $41,600 to $43,680 — a 5% raise, even though it sounds like "just a dollar".
The number that matters is your usual week. If you are scheduled for 40 hours but regularly get 34, use 34: the calculator will show the annual figure you will actually see, not the one on the offer letter.
Hourly raise chart
New hourly rate and new annual pay at 40 hours a week:
| Current rate | +$0.50/hr | +$1.00/hr | +$1.50/hr | +$2.00/hr | +$3.00/hr | +$5.00/hr |
|---|---|---|---|---|---|---|
| $15.00/hr | $15.50 $32,240/yr | $16.00 $33,280/yr | $16.50 $34,320/yr | $17.00 $35,360/yr | $18.00 $37,440/yr | $20.00 $41,600/yr |
| $18.00/hr | $18.50 $38,480/yr | $19.00 $39,520/yr | $19.50 $40,560/yr | $20.00 $41,600/yr | $21.00 $43,680/yr | $23.00 $47,840/yr |
| $20.00/hr | $20.50 $42,640/yr | $21.00 $43,680/yr | $21.50 $44,720/yr | $22.00 $45,760/yr | $23.00 $47,840/yr | $25.00 $52,000/yr |
| $25.00/hr | $25.50 $53,040/yr | $26.00 $54,080/yr | $26.50 $55,120/yr | $27.00 $56,160/yr | $28.00 $58,240/yr | $30.00 $62,400/yr |
| $30.00/hr | $30.50 $63,440/yr | $31.00 $64,480/yr | $31.50 $65,520/yr | $32.00 $66,560/yr | $33.00 $68,640/yr | $35.00 $72,800/yr |
- $1 raise calculator
- $2 raise calculator
- $3 raise calculator
- $5 raise calculator
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What hourly workers keep after tax
In the example of $20 an hour, 40 hours a week and 52 weeks, a $1 raise adds $2,080 gross. For Single filing with no other income, no state tax and no retirement contribution, the estimated extra federal income tax is $249.60 and employee Social Security and Medicare are $159.12. The estimated cash increase is $1,671.28 per year, or $64.28 per bi-weekly check. Caps, thresholds and individual circumstances can change those amounts.
Two things hourly workers should check that salaried workers do not. First, a higher rate can change eligibility for income-tested benefits, which sometimes claws back more than the raise adds. Second, if your employer responds to a rate rise by trimming your hours, the annual number falls even though the rate went up — run the calculator at your new likely hours to see the real effect. Open Show take-home impact above, or use the raise after taxes calculator.
Hourly vs salaried: which raise is bigger?
Compare them as percentages, not as dollars. A $1.50/hour raise on $25/hour is 6%; a $3,000 raise on a $75,000 salary is 4%. The hourly raise is bigger even though the dollar figure is smaller. Convert both to annual pay first, then divide by the old annual pay.
When comparing hourly and salaried offers, check overtime eligibility and expected hours separately. Being paid a salary alone does not settle eligibility. If one arrangement includes extra paid hours or a premium, include those amounts in your comparison; the calculator does not model overtime premiums.
Hourly raise FAQ
How much is a $1 an hour raise per year?
$2,080 a year at 40 hours a week: 1 × 40 × 52 = 2,080. At 35 hours it is $1,820, at 30 hours $1,560 and at 20 hours $1,040. The raise only pays on hours you actually work, so overtime and short weeks both change the annual figure.
How do I calculate a percentage raise on an hourly wage?
Multiply your rate by (1 + the percentage ÷ 100). A 4% raise on $22.50 an hour is 22.50 × 1.04 = $23.40, which is 90 cents more an hour, or $1,872 a year at 40 hours.
What percentage is a $2 an hour raise?
It depends on your current rate: $2 on $20 is 10%, on $25 it is 8%, and on $40 it is 5%. Divide the raise by your current rate and multiply by 100. Switch the calculator to "New pay" mode and it works this out for you.
How much is a 50 cent raise per year?
$1,040 a year at 40 hours a week (0.50 × 40 × 52). Per bi-weekly paycheck that is $40 before tax, or roughly $32 after federal tax and FICA for a typical single filer.
Does overtime change my raise?
If applicable rules pay eligible overtime at 1.5 times the updated base rate, a base increase also raises that overtime rate. Eligibility and the regular-rate calculation depend on the arrangement. The calculator excludes overtime premiums; check your payroll rules before adding them.
How many hours a year is full-time?
2,080 — 40 hours × 52 weeks. That is the standard used here and by most US employers when converting an hourly rate to an annual salary. It counts paid holidays and paid time off as worked hours; unpaid leave reduces it.
Related calculators
- Pay Raise CalculatorNew salary, per paycheck, take-home and real raise.
- Raise After TaxesHow much of your raise you actually keep.
- Cost of Living Raise CalculatorCompare your raise with inflation and find the break-even.
- Salary Increase Over TimeCompound annual raises over 5, 10 or 20 years.
Estimates are for planning only. This is not tax, legal or financial advice.