Salary Raise Calculator

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successive salary raises compound percentage

Successive raises: why 5% + 3% is not 8%

When there are two or more raises in the same period, each one applies to the already raised salary. The calculator below lists the percentages, shows the salary after each, the compound total against the plain sum and, if you give the month, the total received over 12 months.

Why percentages compound

Each raise is a multiplication: the total is the product of the factors minus 1. With 5% and 3%, 1.05 x 1.03 = 1.0815, or 8.15%. The extra 0.15 percentage point is the 3% applying to the 5% already added to the salary. On R$ 3,000, the first raise leads to R$ 3,150 and the second to R$ 3,244.50. The gap against the plain sum (R$ 3,240) looks small, but it grows fast with larger percentages: three 10% raises give 33.1%, and R$ 1,000 becomes R$ 1,331.
The same holds for rises and falls: rising 10% and then falling 10% does not bring you back, it leaves you 1% below (R$ 1,000 becomes R$ 1,100 and then R$ 990). When the changes have opposite signs, the plain sum misleads even more. To compare several raises with a single rate, use the geometric mean: the constant rate that, repeated the same number of times, reaches the same total.
With the month of each raise you can work out what lands in your pocket during the year, not just the final salary. A 4.5% annual adjustment in May and a 3% merit raise in October, on R$ 3,000, add up to 7.635% and leave the salary at R$ 3,229.05, but the total received over 12 months is R$ 37,362.15, against R$ 36,000 with no raise: R$ 1,362.15 more, because the final salary only applies for part of the year. The calculation counts monthly salaries only, with no 13th-month pay or vacation.

Worked examples

5% and then 3% on R$ 3,000

Input: R$ 3.000, +5%, +3%
Expected output: 8,15% acumulado, R$ 3.244,50

The plain sum would give 8% and R$ 3,240: a R$ 4.50 monthly difference.

Three 10% raises on R$ 1,000

Input: R$ 1.000, +10%, +10%, +10%
Expected output: 33,1% acumulado, R$ 1.331

The geometric mean is 10% per raise; the plain sum (30%) underestimates by 3.1 points.

10% rise followed by a 10% fall

Input: R$ 1.000, +10%, -10%
Expected output: -1% acumulado, R$ 990

Rising and falling by the same percentage never gets you back to the start.

Annual adjustment in May and merit raise in October

Input: R$ 3.000, +4,5% (maio), +3% (outubro)
Expected output: 7,635% acumulado, R$ 3.229,05, R$ 37.362,15 no ano

Four months at R$ 3,000, five at R$ 3,135 and three at R$ 3,229.05.

Full tool FAQ

How do I calculate a salary raise in percent?

Multiply the salary by 1 plus the percentage divided by 100. For R$ 3,000 with 5%: 3,000 x 1.05 = R$ 3,150, a difference of R$ 150 per month. For a cut, use a negative percentage: R$ 5,000 with -10% gives R$ 4,500.

How do I find out what raise percentage I got?

Is 5% plus 3% equal to 8%?

Did my raise beat inflation? How do I check?

Should I use IPCA or INPC?

How much of a raise should I ask for to keep my purchasing power?

Does a raise change the 13th-month pay and vacation?

What are dissídio and data-base?

Why is the net raise smaller than the gross raise?

Where does the inflation data come from, and why does it not reach the current month?

Frequently asked questions

Can I add up the raise percentages?

Only as an approximation, and only with small percentages. The correct way is multiplying the factors: (1 + p1) x (1 + p2) - 1. With 5% and 3% that is 8.15%, not 8%.

How do I find the average percentage of several raises?

Use the geometric mean: raise the accumulated factor to 1 divided by the number of raises and subtract 1. For 5% and 3%, the square root of 1.0815 is 1.03995, about 3.995% per raise, slightly below the plain average of 4%.

Does the yearly total change if the raise comes later?

Yes. The final salary is the same, but the later the raise, the fewer months you receive the new amount. Enter the month of each raise in the calculator to see the total received over 12 months.

Next steps

Equivalences (44 h per week)
Unit	Before	After
Per hour	R$13.64	R$14.32
Per day (month / 30)	R$100.00	R$105.00
Per month	R$3,000.00	R$3,150.00
Per year (12 salaries)	R$36,000.00	R$37,800.00
Per year with 13th and vacation	R$40,000.00	R$42,000.00

Equivalences (44 h per week)

Unit

Before

After

Per hour

R$13.64

R$14.32

Per day (month / 30)

R$100.00

R$105.00

Per month

R$3,000.00

R$3,150.00

Per year (12 salaries)

R$36,000.00

R$37,800.00

Per year with 13th and vacation

R$40,000.00

R$42,000.00

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successive salary raises compound percentage

Successive raises: why 5% + 3% is not 8%

Why percentages compound

Each raise is a multiplication: the total is the product of the factors minus 1. With 5% and 3%, 1.05 x 1.03 = 1.0815, or 8.15%. The extra 0.15 percentage point is the 3% applying to the 5% already added to the salary. On R$ 3,000, the first raise leads to R$ 3,150 and the second to R$ 3,244.50. The gap against the plain sum (R$ 3,240) looks small, but it grows fast with larger percentages: three 10% raises give 33.1%, and R$ 1,000 becomes R$ 1,331.

The same holds for rises and falls: rising 10% and then falling 10% does not bring you back, it leaves you 1% below (R$ 1,000 becomes R$ 1,100 and then R$ 990). When the changes have opposite signs, the plain sum misleads even more. To compare several raises with a single rate, use the geometric mean: the constant rate that, repeated the same number of times, reaches the same total.

With the month of each raise you can work out what lands in your pocket during the year, not just the final salary. A 4.5% annual adjustment in May and a 3% merit raise in October, on R$ 3,000, add up to 7.635% and leave the salary at R$ 3,229.05, but the total received over 12 months is R$ 37,362.15, against R$ 36,000 with no raise: R$ 1,362.15 more, because the final salary only applies for part of the year. The calculation counts monthly salaries only, with no 13th-month pay or vacation.

Worked examples

5% and then 3% on R$ 3,000

Input: R$ 3.000, +5%, +3%
Expected output: 8,15% acumulado, R$ 3.244,50

The plain sum would give 8% and R$ 3,240: a R$ 4.50 monthly difference.

Three 10% raises on R$ 1,000

Input: R$ 1.000, +10%, +10%, +10%
Expected output: 33,1% acumulado, R$ 1.331

The geometric mean is 10% per raise; the plain sum (30%) underestimates by 3.1 points.

10% rise followed by a 10% fall

Input: R$ 1.000, +10%, -10%
Expected output: -1% acumulado, R$ 990

Rising and falling by the same percentage never gets you back to the start.

Annual adjustment in May and merit raise in October

Input: R$ 3.000, +4,5% (maio), +3% (outubro)
Expected output: 7,635% acumulado, R$ 3.229,05, R$ 37.362,15 no ano

Four months at R$ 3,000, five at R$ 3,135 and three at R$ 3,229.05.

Full tool FAQ

How do I calculate a salary raise in percent?

How do I find out what raise percentage I got?

Is 5% plus 3% equal to 8%?

Did my raise beat inflation? How do I check?

Should I use IPCA or INPC?

How much of a raise should I ask for to keep my purchasing power?

Does a raise change the 13th-month pay and vacation?

What are dissídio and data-base?

Why is the net raise smaller than the gross raise?

Where does the inflation data come from, and why does it not reach the current month?

Frequently asked questions

Can I add up the raise percentages?

Only as an approximation, and only with small percentages. The correct way is multiplying the factors: (1 + p1) x (1 + p2) - 1. With 5% and 3% that is 8.15%, not 8%.

How do I find the average percentage of several raises?

Does the yearly total change if the raise comes later?

Yes. The final salary is the same, but the later the raise, the fewer months you receive the new amount. Enter the month of each raise in the calculator to see the total received over 12 months.