Enter the hourly pay rate ($/hr), the lump sum merit percentage increase (%), and the number of weeks of pay (weeks) into the Lump Sum Merit Increase Calculator. The calculator will evaluate the Lump Sum Merit Increase. 

Lump Sum Merit Increase Formula

The following formula is used to calculate the Lump Sum Merit Increase. 

LSMI = (HR*PI/100) * W*40

Variables:

  • LSMI is the Lump Sum Merit Increase ($)
  • HR is the hourly pay rate ($/hr) 
  • PI is the lump sum merit percentage increase (%) 
  • HR is the number of weeks of pay (weeks) 

How to Calculate Lump Sum Merit Increase?

The following steps outline how to calculate the Lump Sum Merit Increase.

  1. First, determine the hourly pay rate ($/hr).
  2. Next, determine the lump sum merit percentage increase (%). 
  3. Next, determine the number of weeks of pay (weeks). 
  4. Next, gather the formula from above = LSMI = (HR*PI/100) * W*40.
  5. Finally, calculate the Lump Sum Merit Increase.
  6. After inserting the variables and calculating the result, check your answer with the calculator above. 

Example Problem:

Use the following variables as an example problem to test your knowledge.

hourly pay rate ($/hr) = 20

lump sum merit percentage increase (%) = 5

number of weeks of pay (weeks) = 30

LSMI = (HR*PI/100) * W*40 =  ?