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.
How an hourly raise becomes an annual salary
Hourly raises are quoted in cents and dollars, which makes them feel small. Annualised they rarely are. The conversion is one line:
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
- 3% raise
- 4% raise
- 5% raise
- 10% raise
What hourly workers keep after tax
An hourly raise is taxed exactly like a salaried one: your marginal federal bracket plus 7.65% for Social Security and Medicare, plus state income tax where it applies. On a $1/hour raise at 40 hours — $2,080 a year — a single filer earning $41,600 typically keeps around $1,660 of it, or about $64 per bi-weekly paycheck.
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 you move from hourly to salaried, remember that salaried roles usually have no overtime. If you currently work 46 hours a week with 6 at time-and-a-half, your effective annual pay is well above rate × 2,080 — and a salary that matches your base rate is a pay cut in practice.
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?
Yes, and in your favour. Overtime is normally paid at 1.5× your rate, so raising the base rate raises the overtime rate too. This calculator uses your regular hours, so if you work steady overtime the real annual gain is larger than shown.
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.