Compensation Increase Calculator
Compensation increase calculator works out Raise amount and New pay from Current pay, Increase and Raise amount. The default figures on this page give new pay of 55,000.00; change any entry and the result, the working and the sources update together.
Your figures
Updates as you typeHow this is worked out
3 steps
- Raise = current pay x percent / 100 = 50000 x 10 / 100
- Raise = 5000
- New pay = 50000 + 5000 = 55000
Its 5 worked examples are re-run on every release, last on 15 September 2026. What changed
Sources and references
3 sources
Keep this result
Save it, change one figure, then compare the two
The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.
What the compensation increase calculator calculates
Works out the raise amount, the new rate of pay and the percentage increase from any two of them, including a CPI-style cost-of-living adjustment derived from two index readings.
How to use this compensation increase calculator
Enter Current pay, Increase, Raise amount and New pay. Raise amount updates as you type, and “Use a worked example” loads checked figures you can adjust. Change one figure at a time to see what drives the result.
How the result is worked out
Open “How this is worked out” beside the result for the step-by-step calculation behind Raise amount, New pay and Increase applied.
The method follows U.S. Bureau of Labor Statistics, "Using the Consumer Price Index for escalation" - an amount is escalated by the ratio of the index in the two periods, 42 U.S.C. 415(i) - the Social Security cost-of-living increase is the rise in the CPI-W between third-quarter averages, rounded to the nearest one-tenth of one percent and U.S. Social Security Administration, Latest Cost-of-Living Adjustment - publishes the third-quarter CPI-W averages behind each COLA.
Research R1180-GT-1: 50,000 with a 10% raise example
With Current pay: 50000, Increase: 10, the calculator returns Raise amount: 5000, New pay: 55000. This example is checked against an independent source in the test suite.
What you can compare
Change one input at a time to see how it affects Raise amount, New pay and Increase applied. The inputs you can vary are Current pay, Increase, Raise amount, New pay, Index in the base period and Index in the measuring period.
Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.
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Frequently asked questions
Is a 3% increase a good raise?
Works out the raise amount, the new rate of pay and the percentage increase from any two of them, including a CPI-style cost-of-living adjustment derived from two index readings. On the figures this page opens with — current pay 50,000 and increase 10% — the new pay is 55,000. Put your own figures in their place and the working updates beside the result.
Is a 4% raise per year good?
It needs Current pay, Increase, Raise amount, New pay, Index in the base period and Index in the measuring period. Nothing else is required, and the figures stay in your browser.
Is a 2.5 percent raise good?
The result gives Raise amount, New pay, Increase applied, New pay as a multiple of current pay and Index change, each labelled with its unit so the figure can be read on its own.
Is a 3.5% raise good in 2026?
The page opens with worked default figures: new pay of 55,000.00. Replace them with your own and every figure updates as you type.
What information do I need for the compensation increase calculator?
You need Current pay, Increase, Raise amount, New pay, Index in the base period and Index in the measuring period. The page opens with default figures that give new pay of 55,000.00, so you can see the scale before entering your own.
What does this compensation increase calculator show?
It shows Raise amount, New pay, Increase applied, New pay as a multiple of current pay and Index change, with the working and any warnings for your entries.