In this short tutorial, I will show you how to calculate salary increase percentage (%) in Excel from your recent raise. Also, you will learn how to calculate the amount of raise from the salary increase percentage (%). In every calculation, you will be able to see the amount of difference made in your per paycheck.
Download Practice Workbook
Download the Excel template that I have made while writing this article.
2 Different Methods to Calculate Salary Increase Percentage in Excel
Whenever our salary is increased, we usually have either of the two situations below.
- We have the Amount of Raise but want to find out the Percentage Increase in salary.
- We have Percentage increase in salary but want to find out the Amount of Raise in salary.
In our template, we have shown both of the cases.
So let’s learn how to deal with the first case.
1. Salary Increase Percentage (%) Calculation from the Raise
From your Paycheck Stub, you will take the Gross Salary. Don’t deduct anything from the Gross Salary like Medical Tax, Social Security Tax, Fed Tax or anything else. Normally Gross Salary and Deductions are shown in different columns. So, it will be easy for you to find out the Gross Wages from the paycheck stub.
A sample Paycheck stub.
In the following image, you’re seeing the whole process I have used to calculate the Salary Increase Percentage from the Salary Raise.
Input / Output values in the Excel Template:
- Gross Income (Per Paycheck): Input your Gross Income value in cell C4.
- You Get Paid: This is a drop-down list. Input your payment frequency. Though I have input a lot of values in the list, normally employees gets paid Weekly, Bi-weekly, and Monthly.
- Number of Payments/Year: This is the value you will get from a VLOOKUP table. In the Payments worksheet (a hidden worksheet), you will get a range named as payment_frequency. We have applied the VLOOKUP function to get the Payment Frequency in a year.
- Annual Salary: This is also an output. We got it by multiplying the Gross Income (Per Paycheck) by the Number of Payments per Year:
- Amount of Raise: It will be input by you. Input the raise you got from your company in cell C8.
- New Salary: Your new salary will be the sum of your old Annual Salary and Raise:
=C7 + C8
- Salary Increased (/Decreased): We will calculate using this formula:
=(New Annual Salary – Old Annual Salary)/Old Annual Salary
We use Percentage format to format this cell.
- New Gross Income: To get the New Gross Income (per paycheck), you have to divide your new annual income by the total number of payments per year:
- Change Per Paycheck: Just subtract your new Per Paycheck from the old Per Paycheck:
Read More: How to Create a Monthly Salary Sheet Format in Excel (with Easy Steps)
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2. New Salary and Raise Calculation from the Salary Increase Percentage (%)
In this case, the dataset will provide your Salary Increase Percentage, we shall calculate your new Gross Income and Raise.
Now, check out the following image. You should notice that this time we give the Salary Increase Percentage instead of the Raise amount.
Input / Output values in the Excel Template:
- Gross Income (Per Paycheck): Input your Gross Income.
- You Get Paid: Select your payment frequency from the drop-down list.
- Number of Payments/Year: We used Excel VLOOKUP formula to get this value. See the above explanation.
- Annual Salary: We calculated annual Salary by multiplying the Gross Income by the Total Number of Payments per Year.
- Salary Increased (/Decreased): Previously, in this place, we have used the Amount of Raise This time, we are using the percentage increase. You will input this value into the template.
- New Salary: Calculate new Salary using this formula:
= Old Salary x (1 + Percentage Increase)
- Amount of Raise: It is the subtraction of New Annual Salary and Old Annual Salary:
- New Gross Income: Division of the New Annual Salary and the Total Number of Payments per Year:
- Change Per Paycheck: Difference of the New Per Paycheck and the Old Per Paycheck:
Read More: How to Create Salary Slip Format with Formula in Excel Sheet
This is how to calculate the salary increase percentage (%) in Excel from Gross Pay and Raise. I have also shown how to calculate the raise from the percentage increase. Hope this article and the Excel template help you. Moreover, if you have any further queries, please let us know by commenting in the post.
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