Minimum Wage Increase Calculator: Percentage Change Between Two Wages
Work out the percentage increase between an old and new minimum wage — and the hourly and annual dollar difference — useful for understanding wage-law changes as a worker, or labor-cost impact as an employer.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Wage increase | Hourly increase |
|---|---|---|
| $7.25 to $15 (+106.9%) | 106.90% | 7.75 |
| $12 to $15 (+25%) | 25.00% | 3 |
| $15 to $16.50 (+10%) | 10.00% | 1.5 |
| $10 to $11 (+10%) | 10.00% | 1 |
How This Calculator Works
Enter the old hourly wage and the new hourly wage. The calculator finds the percentage increase and the hourly dollar difference. To estimate the annual impact, multiply the hourly increase by the hours worked per year (full-time is about 2,080 hours).
The Formula
Percentage Change
Old is the starting value, New is the ending value
Worked Example
Going from $7.25 to $15 an hour is a 106.9% increase — $7.75 more an hour. For a full-time worker (2,080 hours/year), that's about $16,120 more in annual gross pay. For employers, the same change roughly doubles the wage cost of minimum-wage staff, which is why minimum-wage debates weigh higher worker incomes against employer cost pressures, potential price increases, and effects on hiring — economists disagree on the magnitude of each.
Key Insight
Minimum-wage changes are a percentage-change calculation with outsized real-world stakes on both sides. For workers, the headline is the raise in take-home pay, but the real value depends on local cost of living and whether prices rise in response — a wage increase that's matched by higher local prices delivers less than the percentage suggests. For employers, a minimum-wage hike raises labor cost directly for affected staff and can ripple upward (workers earning just above the old minimum often expect raises too), prompting responses like price increases, reduced hours, automation, or slower hiring. The economic evidence is genuinely mixed: studies find modest increases often raise incomes with limited employment loss, while very large or rapid increases carry more risk — context (local wage levels, industry, speed of the increase) matters enormously. This calculator gives the clean arithmetic: the percentage jump and the per-hour and annual dollar change. Use it to ground the discussion in concrete numbers, then layer in cost-of-living, ripple effects, and the specific labor market for the full picture.
Frequently Asked Questions
How is the minimum wage increase calculated?
Subtract the old wage from the new wage, divide by the old wage, and multiply by 100. From $7.25 to $15 is ($15 − $7.25) / $7.25 = 106.9%, an increase of $7.75 an hour.
What's the annual impact of a wage increase?
Multiply the hourly increase by annual hours worked. At full-time (about 2,080 hours/year), a $7.75/hour increase is roughly $16,120 more in gross annual pay. Part-time workers see a proportionally smaller annual change based on their hours.
How does a minimum wage increase affect employers?
It raises labor cost directly for minimum-wage staff and often ripples upward, since workers earning just above the old minimum may expect raises too. Employers may respond with price increases, reduced hours, automation, or slower hiring — the magnitude depends on the industry and the size of the increase.
Does a higher minimum wage mean more real income?
Usually, but not by the full percentage. If local prices rise in response, or if the worker's hours are cut, the real gain is smaller than the headline increase. Cost of living and any price effects determine how much the raise actually improves purchasing power.
What does the research say about minimum wage increases?
It's mixed and context-dependent. Studies often find modest increases raise incomes with limited employment loss, while very large or rapid increases carry more risk to jobs and hours. Local wage levels, industry, and the speed of the increase all matter, which is why economists debate the effects.
Related Calculators
Methodology & Review
The increase is the difference between the new and old hourly wage divided by the old wage, multiplied by 100. It compares two hourly rates directly; annual impact depends on hours worked and does not account for taxes or benefits.
Written by Ugo Candido · Last updated May 22, 2026.