How to Calculate Percentages
Real-world example: Your boss offers you a 5% raise on your $60,000 salary. How much is that? 5% of $60,000 = ($60,000 × 5) ÷ 100 = $3,000 raise. Your new salary is $63,000.
Four Essential Percentage Calculations
1. What is X% of Y?
Formula: (X ÷ 100) × Y
Example: What is 20% of $50,000?
(20 ÷ 100) × 50,000 = $10,000
2. X is what % of Y?
Formula: (X ÷ Y) × 100
Example: $15,000 is what % of $50,000?
(15,000 ÷ 50,000) × 100 = 30%
3. Percentage Increase
Formula: ((New - Old) ÷ Old) × 100
Example: Salary goes from $50k to $55k
((55,000 - 50,000) ÷ 50,000) × 100 = 10% raise
4. Percentage Decrease
Formula: ((Old - New) ÷ Old) × 100
Example: Overtime cut from $1,000 to $800
((1,000 - 800) ÷ 1,000) × 100 = 20% decrease
Common Percentage Calculations at Work
Salary Raise Calculations
When your employer offers a percentage raise, you need to know the dollar amount. For example:
- 3% raise on $50,000: (3 ÷ 100) × 50,000 = $1,500 increase → New salary: $51,500
- 5% raise on $75,000: (5 ÷ 100) × 75,000 = $3,750 increase → New salary: $78,750
- 10% raise on $40,000: (10 ÷ 100) × 40,000 = $4,000 increase → New salary: $44,000
Bonus Calculations
If your company offers a bonus as a percentage of your salary:
- 10% annual bonus on $60,000: (10 ÷ 100) × 60,000 = $6,000 bonus
- 5% quarterly bonus on $80,000: (5 ÷ 100) × (80,000 ÷ 4) = $1,000 per quarter
Pay Cut or Furlough Calculations
Unfortunately, you may need to calculate pay reductions:
- 10% pay cut on $55,000: (10 ÷ 100) × 55,000 = $5,500 reduction → New salary: $49,500
- 20% furlough on $70,000: (20 ÷ 100) × 70,000 = $14,000 reduction → New salary: $56,000
Comparing Percentage vs. Dollar Amounts
A 5% raise means different dollar amounts at different salary levels:
| Current Salary | 5% Raise | New Salary |
|---|---|---|
| $40,000 | $2,000 | $42,000 |
| $60,000 | $3,000 | $63,000 |
| $80,000 | $4,000 | $84,000 |
| $100,000 | $5,000 | $105,000 |
Percentage Tips for Job Negotiations
- Know the percentage: When negotiating, ask for a specific % (e.g., "I'm seeking a 10% increase") rather than just a dollar amount
- Compare to inflation: In 2026, inflation is ~3-4%. A raise below that is effectively a pay cut
- Industry standards: Annual raises typically range from 3-5% for good performance, 7-10% for promotions
- Calculate total compensation: Include bonuses and benefits when calculating your true percentage compensation change
Related Calculators
Salary to Hourly
Convert annual salary to hourly rate
Hourly to Salary
Convert hourly wage to annual salary
Overtime Calculator
Calculate overtime pay with custom rates
Time and a Half
Calculate 1.5× overtime pay
Frequently Asked Questions
How do I calculate what percentage one number is of another?
Divide the first number by the second, then multiply by 100. Example: 25 is what % of 100? (25 ÷ 100) × 100 = 25%.
How to calculate percentage increase for a raise?
Subtract old salary from new, divide by old salary, multiply by 100. Example: $60k to $63k = ($3k ÷ $60k) × 100 = 5% raise.
What's the difference between percentage and percentage points?
Percentage points measure absolute change. If your raise went from 3% to 5%, that's a 2 percentage point increase, but a 66.67% relative increase ((5-3)÷3×100).
How do I calculate a percentage decrease?
Subtract new value from old, divide by old, multiply by 100. Example: Pay drops from $1000 to $800: ((1000-800)÷1000)×100 = 20% decrease.
Is a 3% raise good in 2026?
With inflation around 3-4%, a 3% raise barely keeps pace with cost of living. A "good" raise is typically 5-7% for solid performance, 10%+ for promotions.