This free online pay raise calculator will not only calculate your pay raise or cost of living (COL) raise, but will also translate the raise into every common and not-so-common time period -- including how much the raise will add up to between now and when you plan to retire!
Before we use the pay raise calculator, let's first be sure you understand who is ultimately responsible for how much you earn from the time you spend serving an employer. If you're not sure, here's a clue. It's NOT your employer.
First of all, having been an employer myself, I can tell you that your employer would love nothing better than to pay you what your time, talents and skills are worth to the company. After all, your employer is competing for employees just as much as you are competing with everyone who desires your job. If the employer is not paying you what you believe you are worth, there are only three possible explanations.
Contrary to what you might think, your employer is not continuously scheming for ways to make you work harder for less money.
If your employer is profitable, they are certainly smart enough to realize that if they don't compensate their best employees with competitive wages, they will lose their best employees. They are also smart enough to realize that if they lose all of their best employees, they will likely no longer be profitable.
So the first part of the "increase your pay" formula is to make sure you are, and continue to be, one of your employer's best employees. This will insure that you are paid as much as the employer can afford to pay you based on their earnings.
And if you want to help your employer increase their earnings, encourage your co-workers to become "best" employees as well.
What many employees fail to realize is that their employer is the goose that lays golden eggs.
Because each dollar you receive from your employer comes with built-in earning potential. If you invest a portion of each dollar you earn, you will continue to earn income from each hour's work ... for the rest of your life. Viola, Golden Eggs!
However, if you fail to invest any portion of the dollars your employer is paying you, and instead spend them all on non-appreciating purchases, you have effectively turned the potential Golden Eggs into Perishable Eggs.
So the second part of the "increase your pay" formula depends on what you do with what your employer is paying you.
Find a full length mirror, position yourself squarely in front of it, and then make the following demands to the person staring back at you:
Bottom line? Don't be one of those employees who is waiting to work harder until they get a pay raise. Because that's as ridiculous as telling a wood stove "Give me heat first, then I will put wood in."
With that, let's use the pay raise calculator to calculate the effects of an increase in how much your employer is paying you.
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Current pay rate: The amount you are currently being paid per increment of time (hour, day, week, bi-weekly, semi-monthly, monthly, etc.).
Time period your pay rate applies to: The time period that corresponds to the pay rate you entered in the first line. The following time period conversion chart lists the number of periods per year used by the pay raise calculator.
|Time Period Conversion Chart|
Pay raise type: The type of raise you are entering. If you know the new pay rate amount, select New pay rate. If you want to enter the dollar amount of only the raise itself (getting a $1 per hour raise), select Dollar amount increase. If the pay raise is a percentage increase, select Percentage increase (for .10 enter 10%). Once you have selected the type of raise you are entering, enter the corresponding amount in the right-hand column.
Number of hours you work each week: The number of hours you work per work week. This figure will be used to calculate hourly pay for those entering pay period rates other than hourly (hours per week X 52 weeks = annual hours).
Your current age: The calculator will use your current age to calculate potential earnings on your raise if you choose to invest it rather than spend it.
Age you plan to retire at: The calculator will use your retirement age to calculate potential earnings on your raise if you choose to invest it rather than spend it.
Expected annual return on investments (ROI): The percent return on your investment you believe you could earn between now and when you plan to retire. The calculator will use your ROI to calculate potential earnings on your raise if you choose to invest it rather than spend it.
New pay rate: Your new pay rate based on your pay raise calculator entries.
Percentage increase: The percentage increase of your pay rate dollar-amount increase.