How Do I Calculate A Percentage Of Increase In My Salary Or Investment?

Hank, I just got a raise at work from $35,000AUD to $42,000AUD – what is that percentage of increase, more so, how do I calculate it? - Gerald from Perth

Hey Gerald – good question, people wonder that more than you think. So the way to calculate a percent increase between two numbers:

1. Take the difference between two numbers (this can be a subtracted either way because the number will just be a negative) $42,000 – $35,000 = $7,000
2. Take the difference ($7,000) and divide by the original number: $7,000/$35,000 = 0.20
3. Finally, multiply the number above by 100. (0.20*100 = 20%)

You’ve gotten a 20% raise! Which is far better than the standard “cost of living increase” of about 3.1%! Nice job!

(Thanks to OnFinancialSuccess for the typo fix resolve.  )

Photo by: hasmil

Filed Under: adviceCompensationReaders Requests

  • http://iluvcontest.blogspot.com Sherry

    About increase in salary, over here in Malaysia its based on the boss whether they will give you a raise or not. Sometimes you don’t get any raise in 3 years.

  • dan

    my salary is £23,540 p.a
    i work a 35 hour week
    my question is ?
    if i wanted a 75 pence an hour increase, what is the overall percentage increase on my annul salary ?
    thank you

  • Elke

    to Dan: $23450yearly pay/52weeks/35hours=12.89(current hourly pay)+0.75(increase)=13.64(new hourly pay).
    For the percentages: 0.75/12.89*100=5.82%

    I hope this helps.

  • Ibrahimchakingal

    Selling price $80
    Gross Margin 247.82%
    i want to get cost price

    thank you

  • ri

    if I make 16.04 an hr. and am getting a 2.5% raise what will be my new hourly rate?

  • Rainforest29

    16.441

  • Rainforest29

    5.35% salary increase or 14.76 per hour on a 35 hours per week

  • http://forexgrowthbotreview.info/ jack

    Salary increment should always be in step with the increase of cost of living.  Where I am living, it hasn’t been and this has given rise to a lot of hardship.

  • john

    Wrong…a 2.5% increase would be 16.45/ hr  16.04 divided by 97.5 gives an increase of 2.5 %  You took 2.5% OF 16.04 and added it back to the 16.04
    That’s not an increase, its a percentage of.

  • http://thaiprepaidcard.com/ Bryan

    Working backwards, the percentage increase from 16.04 to 16.45 is 2.5561%  and  16.04 to 16.441 is 2.49999%.  The first poster is more correct.  http://percentageincrease.com  

  • http://rodger-liverich.hpage.com/ Eric Ledbetter

    Understanding increases in your salary as percentages can dramatically
    improve your ability to manage your personal finances. Statistics about
    economic growth, inflation rates, and cost of living are often expressed
    in percentages, so understanding the rate at which your salary is
    increasing will help you to determine your “real” compensation – that
    is, your compensation adjusted for changes in inflation and cost of
    living. Learning how to work out a salary increase percentage will also
    help you to compare your compensation against others in your field.

  • http://darin-chilton.spruz.com/ David Leon

    1 Determine the absolute difference between your old salary and new
    salary . Begin by subtracting your old salary from your new one to
    determine the increase in absolute terms.

  • http://curtis-ashton.webnode.com/ CharlesNava

    Understanding increases in your salary as percentages can dramatically improve your ability to manage your personal finances.

  • underpaid overworked

    so i make $1080 a week and now i just got a raise to $1100 a week a difference of $20.00  So $20 divided by $1080 = 0.0185185 multiply by 100 = 1.85185 so this means i got 1.8% raise…..!!!! almost 2 percent… And my boss tells me now i can take my girlfriend to Mc’D… gee thank you sir  

  • Judy

    how much is a 1.8% increase to $787.00

  • Sophia Davis

    Ours is a collective investment scheme of money investment alongside other investors in order to benefit from the inherent advantages of working as part of a group.

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    Ours is a collective investment scheme .Take a look at this http://www.welikeinvesting.com/. It is a money investment alongside other investors in order to benefit from the inherent advantages of working as part of a group.

  • Liz

    my boyfriend and i are trying to work out the percentage difference between our two salaries – in order to calculate the amount of rent we should each pay.
    using ficticious figures, say he earns 92700 and i earn 83000 – how do we calculate the difference between our salaries please?
    can anyone help.
    Thanks! :)

  • Sam

    In 1996 I paid annual rent of 1200 and am now paying anual rent of 8000. What is the formula ( I assume there is one ) to determine the actual percentage increase each year.

  • http://www.facebook.com/ejikeme.princely Ejikeme Princely

    This is a very nice article on how to calculate percentage increase . i like this article

  • pleasehelp

    last year nikita’s wage was $280 per week. this year she received a 30% increase and has been told next year there will be another increase of 20% what will her weekly wage be next year?

  • Linda

    I invested $55,000 with an investment company 3 years ago and now have $62,000 in it. What interest has my money made in the 3 years?

  • ulfric

    Liz I figured that dividing 92700 by 12 and likewise with 83000 ( based upon annual monthly salary) they I deduct the lower figure (83000 from 92700) there is an 8% gap so he should pay 8% more than you toward the rent – plus any extra supplimentary

  • Bubba

    That is CAGR: compounded annual growth rate. There’s lots of info in the web (and calculators) for that.