Raise Guide

How to Calculate a Pay Raise From an Hourly Rate

Subtract the old hourly rate from the new hourly rate, then multiply the difference by expected hours to estimate weekly, monthly, and annual gross raise value. An hourly raise feels clear per hour, but the real value depends on how many paid hours you actually work. This page targets the search phrase "calculate pay raise hourly rate" with a direct answer first, then a calculator-backed check.

Full explanation Step-by-step details Open only when the direct answer is not enough.

Direct answer

Subtract the old hourly rate from the new hourly rate, then multiply the difference by expected hours to estimate weekly, monthly, and annual gross raise value.

Working formula: Raise value = new hourly rate minus old hourly rate, multiplied by paid hours.

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A realistic workplace example

Moving from $20/hour to $22/hour is a $2/hour raise. At 40 hours per week, that is about $80 more gross per week and about $4,160 more gross per year before taxes.

Old rate: $20; new rate: $22; difference: $2/hour; weekly gross increase at 40 hours: $80; annual gross increase: $4,160.

Comparison table
InputCheckResult
Search questioncalculate pay raise hourly rateSubtract the old hourly rate from the new hourly rate, then multiply the difference by expected hours to estimate weekly, monthly, and annual gross raise value.
FormulaRaise value = new hourly rate minus old hourly rate, multiplied by paid hours.Moving from $20/hour to $22/hour is a $2/hour raise. At 40 hours per week, that is about $80 more gross per week and about $4,160 more gross per year before taxes.
Copyable resultKeep assumptions visibleOld rate: $20; new rate: $22; difference: $2/hour; weekly gross increase at 40 hours: $80; annual gross increase: $4,160.
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How to check it without overthinking

Key checks
  • Write the old rate and new rate.
  • Calculate the hourly difference.
  • Multiply by realistic weekly paid hours.
  • Convert weekly increase to annual increase if needed.
  • Estimate taxes separately before budgeting take-home change.

Mistakes that change the answer

Do not assume the net paycheck rises by the full gross raise.

Do not use 40 hours if your schedule is usually lower or variable.

Do not ignore lost overtime, shift premiums, or benefit changes.

Copy this note

Old rate: $20; new rate: $22; difference: $2/hour; weekly gross increase at 40 hours: $80; annual gross increase: $4,160.

If you send the result to payroll, HR, a manager, or a client, include the inputs and the rule you used. That makes the number easier to verify.

Useful next pages

Related page: /guides/how-much-is-a-3-percent-raise/

Related page: /guides/how-to-check-if-a-raise-is-real-after-hours-change/

Related page: /tools/annual-income-calculator/

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Best use

Use this when someone searches for "calculate pay raise hourly rate" and needs a practical answer before opening a calculator.

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Calculation

Raise value = new hourly rate minus old hourly rate, multiplied by paid hours. Example: Moving from $20/hour to $22/hour is a $2/hour raise. At 40 hours per week, that is about $80 more gross per week and about $4,160 more gross per year before taxes.

Next step

Run the numbers in Pay Raise Calculator and keep the copyable result with your assumptions.

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Next guides

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Pay Guide

3 Percent Raise

A 3 percent raise equals current pay multiplied by 0.03. Add that amount to current pay to find the new gross rate or salary. Use the matching calculator to test the

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Raise Timing Guide

Mid-Year Pay Raise

Mid-Year Pay Raise: practical answer, detailed scenario, copyable result, step-by-step calculation, mistakes to avoid, and related calculator for calculate pay raise

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Turn this guide into a working calculator path.

Start with the main calculator, then open nearby tools when the decision needs another estimate.

FAQ Hourly Pay Raise questions Open for common follow-up questions after the direct answer.

Hourly Pay Raise questions

How to Calculate a Pay Raise From an Hourly Rate

Subtract the old hourly rate from the new hourly rate, then multiply the difference by expected hours to estimate weekly, monthly, and annual gross raise value.

Which number should I copy?

Old rate: $20; new rate: $22; difference: $2/hour; weekly gross increase at 40 hours: $80; annual gross increase: $4,160.

Which calculator should I use next?

Use Pay Raise Calculator to test the exact inputs and avoid mixing gross pay, net pay, hours, and policy rules.