How to use this result
Compare the new rate against the old one to get the percentage change. Moving from $30 to $32 is a 6.67% raise and adds $4,160 across 40 paid hours for 52 weeks.
The annual figure assumes your hours remain the same. A higher rate with fewer hours can still reduce yearly earnings, so use the offer or part-time comparison when the schedule changes too.
The formula
Worked example
Using the example inputs loaded above:
6.67%
Pay change.
Common questions
Can I calculate a pay cut?
Yes. Enter a lower new rate. The percentage and income changes will be negative.
Why not enter zero as my current rate?
A percentage increase from zero is undefined. Compare absolute dollar income instead.
Assumptions & references
Amounts use USD. Results are planning estimates using your entries, with dollars rounded only for display. Each tool covers the model described here; it does not determine payroll or tax obligations. Read the calculation methodology.
This is arithmetic based on user-supplied assumptions; it does not use external wage or price data.
Formula version 1.0 · Reference check: September 7, 2026 · Report a calculation issue