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Calculate hourly wage rises and contractor payrises: enter current hourly or salary pay and raise % to see new pay and yearly difference.
Calculate hourly wage rises and contractor payrises: enter current hourly or salary pay and raise % to see new pay and yearly difference.
Enter values above and click Calculate — results will appear here with the formula explained.
New pay is current times one plus percent; increase is new minus current. This calculator's edge over salary-only tools is the hourly mode: for hourly workers the yearly gain is the hourly increase times actual hours (2080 for full-time, fewer for part-time or contractors), so $30/hour plus 5% is $31.50/hour and +$3,120 yearly at full-time hours.
Contractor payrise math differs from salaried raises: contractors should price the uplift against billable hours, not 2080 — at 1,200 billable hours a $2/hour rise is $2,400 yearly, and unpaid bench time, holidays and admin dilute headline rates. Enter your real billable hours mentally alongside this result; the calculator shows gross pay change, while take-home depends on tax structure (umbrella, limited company or sole trader).
'Payrise' (UK) versus 'raise' (US) is spelling, not arithmetic — but UK contractors should also check IR35 implications and umbrella margins, which take a cut before the rise reaches you. A 5% client-rate rise through a 15%-margin umbrella nets less than the same rise as a direct employee's salary bump.
Real raise subtracts inflation: 5% nominal minus 3% inflation is ~2% purchasing-power gain. Hourly workers feel inflation fastest because overtime and shift differentials rarely index automatically — renegotiate the base rate, not just hours.
Raises compound: 5% yearly for 3 years totals 15.76%, not 15%. For hourly staff that compounds on every overtime hour too (1.5× the new rate), so a $1.50 base rise is worth $2.25 per overtime hour — meaningful across a year of extra shifts.
Calculate hourly wage rises and contractor payrises: enter current hourly or salary pay and raise % to see new pay and yearly difference. Formula: New = pay*(1+pct/100). Example: With $65k salary and 5% rise: new $68,250, increase $3,250/year, $270.83/month.
New pay is current times one plus percent; increase is new minus current. This calculator's edge over salary-only tools is the hourly mode: for hourly workers the yearly gain is the hourly increase times actual hours (2080 for full-time, fewer for part-time or contractors), so $30/hour plus 5% is $31.50/hour and +$3,120 yearly at full-time hours.
Contractor payrise math differs from salaried raises: contractors should price the uplift against billable hours, not 2080 — at 1,200 billable hours a $2/hour rise is $2,400 yearly, and unpaid bench time, holidays and admin dilute headline rates. Enter your real billable hours mentally alongside this result; the calculator shows gross pay change, while take-home depends on tax structure (umbrella, limited company or sole trader).
'Payrise' (UK) versus 'raise' (US) is spelling, not arithmetic — but UK contractors should also check IR35 implications and umbrella margins, which take a cut before the rise reaches you. A 5% client-rate rise through a 15%-margin umbrella nets less than the same rise as a direct employee's salary bump.
Real raise subtracts inflation: 5% nominal minus 3% inflation is ~2% purchasing-power gain. Hourly workers feel inflation fastest because overtime and shift differentials rarely index automatically — renegotiate the base rate, not just hours.
Raises compound: 5% yearly for 3 years totals 15.76%, not 15%. For hourly staff that compounds on every overtime hour too (1.5× the new rate), so a $1.50 base rise is worth $2.25 per overtime hour — meaningful across a year of extra shifts.
With $65k salary and 5% rise: new $68,250, increase $3,250/year, $270.83/month. Hourly case: $30/hour plus 5% is $31.50/hour, +$3,120 yearly at 2080 hours — or +$2,400 at 1,200 contractor billable hours.
Formulas are standard public references (see our methodology). External standards are cited in the text where they apply.
Last reviewed: September 2026 · Report an error