Calculate How Much of a Pay Raise You Keep
Compare current and proposed monthly salary using the same entered tax and retirement rates. The result separates the gross increase from the estimated net increase and shows the share retained.
Gross raise: 10.0%
- Gross monthly increase
- $500
- Current estimated net
- $3,850
- New estimated net
- $4,235
- Net retention of raise
- 77.0%
Compare ordinary payslips after the change and exclude arrears, reimbursement and unusual overtime.
Estimate how much of a pay raise reaches you
Compare current and proposed salary to estimate the monthly net increase after adjustable tax and payroll deductions.
Interpret the result with the pay-raise take-home guide and verify recurring cash through the gross and net pay bridge.
Compare ordinary recurring months under the same assumptions
Use recurring salary
Compare ordinary old and new months without arrears or one-off awards.
Remove first-month noise
Wait for a stable payslip before changing fixed household spending.
- Change measured
- New estimated monthly net pay minus current estimated monthly net pay.
- Use the increase for
- Promotion, annual-review and job-change salary scenarios.
- Remove from the comparison
- Arrears, one-off allowances, bonus and changed working costs.
Why gross and net raises differ
The calculator runs the old and new salary through the same entered tax and retirement contribution rates. The net increase shows how much of the gross raise remains under those assumptions.
The retention rate is the estimated net increase divided by the gross increase. It is not a tax rate.
Remove unusual first-month amounts
A backdated raise can create arrears, while promotion allowances and bonus can make the first payslip unusually high. Compare ordinary recurring months and check whether hours, travel or benefit thresholds changed with the role.
After three complete payslips, replace the estimate with the realised recurring net difference.
Plan the increase
Verify the recurring change after payroll
Save the old ordinary payslip, the written effective date and the first three complete payslips after the raise. Remove arrears, reimbursements, overtime and one-off allowances before comparing recurring net pay. If the realised increase differs from the estimate, identify whether gross salary, tax withholding, retirement contribution or another deduction moved. That bridge is more useful than treating the first changed bank credit as the permanent monthly gain.
Questions about the gross and net value of a raise
Why is the net raise smaller than the gross raise?
The higher recurring salary can increase employee contributions and estimated progressive income tax.
Should I use the first payslip after a raise?
Not by itself. Arrears and one-off adjustments can distort the first month, so compare ordinary recurring payslips.
Does the calculator value a promotion's new benefits or costs?
No. Add changed hours, travel, allowances, bonus conditions and benefits outside the net-pay calculation.
Check how the raise changes compensation and cash flow
Compare salary, benefits, employer-funded value, working time and personal employment costs before choosing an offer or raise.