Promotion Raise Calculator: Percentage Increase in Salary
Work out the percentage raise from a promotion between your old and new salary — and the dollar increase per year — so you can judge whether the offer matches the added responsibility and the market rate for the role.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Raise | Annual increase |
|---|---|---|
| $68k to $82k (+20.6%) | 20.59% | 14,000 |
| $55k to $60k (+9.1%) | 9.09% | 5,000 |
| $100k to $130k (+30%) | 30.00% | 30,000 |
| $72k to $75k (+4.2%, merit only) | 4.17% | 3,000 |
How This Calculator Works
Enter your old salary and your new salary. The calculator finds the percentage raise between them and the annual dollar increase. Use base salary for both, then consider bonus, equity, and benefits separately.
The Formula
Percentage Change
Old is the starting value, New is the ending value
Worked Example
A promotion from $68,000 to $82,000 is a 20.6% raise — $14,000 more a year. Promotion raises vary widely: a typical merit raise is often just 3% to 5%, while a true promotion to a higher level commonly brings 10% to 20%, and a big jump in scope or a counter-offer can be more. The key question is whether the new salary matches the market rate for the new role — companies sometimes under-pay internal promotions relative to what they'd offer an external hire for the same job.
Key Insight
A promotion raise is one of the highest-leverage moments in a career, and the most common mistake is anchoring on your old salary instead of the market rate for the new role. Internal promotions are frequently under-paid relative to external hires for the same title — companies count on loyalty and the friction of leaving. Three things to check: benchmark the new title's market range (not just a percentage bump on your old pay), look at total compensation (a promotion may add bonus target, equity, or better benefits that the base-salary percentage misses), and recognize that this is a rare window to negotiate, since the company has already decided they value you enough to promote you. A 20% raise sounds great in isolation but may still lag the market for the new responsibilities — compare against the role's going rate, and remember that the compounding effect of a higher base carries through every future raise.
Frequently Asked Questions
How is the promotion raise calculated?
Subtract the old salary from the new salary, divide by the old salary, and multiply by 100. From $68,000 to $82,000 is ($82,000 − $68,000) / $68,000 = 20.6%, a $14,000 annual increase.
What's a typical raise for a promotion?
It varies. A standard merit raise is often just 3% to 5%, while a genuine promotion to a higher level commonly brings 10% to 20%. Larger jumps happen with big increases in scope, a competing offer, or correcting prior underpayment. There's no fixed rule — the right figure is the market rate for the new role.
Should I compare to my old salary or the market?
The market. Anchoring on a percentage bump from your old pay is the most common way internal promotions get underpaid. Benchmark the new title's market salary range and aim for that, since companies sometimes pay internal promotions less than they'd offer an external hire for the same job.
Does base salary tell the whole story?
No. A promotion may also change your bonus target, equity grant, and benefits, which the base-salary percentage misses. Compare total compensation before and after, not just base pay — a modest base raise can come with a meaningful jump in bonus or equity that changes the real value.
Why does the raise percentage matter long-term?
Because future raises usually build on your new base. A higher promotion raise compounds — every percentage merit increase and future promotion starts from the larger number. Negotiating well at promotion time pays off for years, which is why it's worth ensuring the new salary matches the role's market rate.
Related Calculators
Methodology & Review
The raise is the difference between the new and old salary divided by the old salary, multiplied by 100. It compares two salary figures directly and does not account for changes in bonus, equity, benefits, or taxes.
Written by Ugo Candido · Last updated May 22, 2026.