Enter the new salary amount and original salary amount into the calculator to determine the percent salary increase.

Percent Salary Increase Formula

The following formula is used to calculate the percent salary increase.

PSI = ((NS - OS) / OS) * 100


  • PSI is the percent salary increase (%) NS is the new salary amount ($) OS is the original salary amount ($)

To calculate the percent salary increase, subtract the original salary amount from the new salary amount. Divide the result by the original salary amount. Multiply the quotient by 100 to get the percent salary increase.

What is a Percent Salary Increase?

A percent salary increase refers to the percentage by which an individual’s salary is raised. This is typically determined by an employer and can be based on factors such as performance, promotion, or cost of living adjustments. The increase is calculated by taking the difference between the new salary and the old salary, dividing it by the old salary, and then multiplying by 100 to get the percentage increase.

How to Calculate Percent Salary Increase?

The following steps outline how to calculate the Percent Salary Increase (PSI).

  1. First, determine the new salary amount (NS) ($).
  2. Next, determine the original salary amount (OS) ($).
  3. Next, use the formula PSI = ((NS – OS) / OS) * 100.
  4. Finally, calculate the Percent Salary Increase (PSI).
  5. 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.

New salary amount (NS) ($) = 50000

Original salary amount (OS) ($) = 40000