Effective Raise Calculator





Formula

To calculate the Effective Raise Percentage (R):

\[ R = \left( \frac{S_n - S_o}{S_o} \right) \times 100 \]

Where:

What is an Effective Raise?

An effective raise is the percentage increase in salary from an old salary to a new salary. It is a measure of how much an individual's salary has increased over a period, typically expressed as a percentage. This calculation helps employees and employers understand the impact of salary adjustments on overall compensation. An effective raise can result from promotions, annual salary reviews, or other adjustments to an employee's pay.

Example Calculation 1

Let's assume the following values:

Step 1: Use the formula:

\[ R = \left( \frac{60,000 - 50,000}{50,000} \right) \times 100 = \left( \frac{10,000}{50,000} \right) \times 100 = 20\% \]

The Effective Raise Percentage is 20%.

Example Calculation 2

Let's assume the following values:

Step 1: Use the formula:

\[ R = \left( \frac{75,000 - 70,000}{70,000} \right) \times 100 = \left( \frac{5,000}{70,000} \right) \times 100 = 7.14\% \]

The Effective Raise Percentage is 7.14%.