How to Calculate Annual Percentage Salary Raises
- 1). Write down your annual salary. This may be found on your paycheck stubs or last year's W-2.
- 2). Write down the percentage your raise will be and convert it to a decimal notation. For example, a 3 percent raise would translate to 0.03 while an 11 percent raise would be 0.11.
- 3). Multiply the decimal notation of your raise by your annual salary. For example, a 4 percent raise on $40,000 per year would be 0.04 times 40,000.
- 4). Write down the product of Step 3, which equals the amount of the raise you are getting. Add it to your old salary to equal your new salary. For example, a 4 percent raise on $40,000 would equal $1,600 more per year for a new annual salary of $41,600.
- 5). Repeat Steps 1 through 4 for each subsequent year for which you need to calculate the annual percentage raise.
