Free compensation planning tool
Employee Raise Budget Calculator
Estimate the salary pool and true employer cost of raises across a workforce, including payroll burden, bonus changes and salary-linked benefits.
Simple raise budget
Annual run rateApply one raise percentage to the workforce
Workforce
Employer cost
Simple methodAnnual raise pool = employees × average salary × raise %. Employer cost adds the entered payroll burden and salary-linked benefit rate. Partial-year budget impact uses the number of months remaining from the selected effective month through December.
Advanced raise budget
5 compensation groupsPlan raises by employee group
Compensation groups
GroupEmployeesAvg salaryMerit raiseMarket adj.Promotion adj.
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Employer compensation costs
Timing & additional budget
Advanced methodEach group’s salary increase is the sum of merit, market and promotion adjustments. The calculator then adds payroll burden, salary-linked benefits and the increase in modeled bonus cost caused by higher salaries. One-time retention/adjustment dollars are included in current-year cash impact but excluded from recurring annual run rate.
Group breakdown
Annualized recurring costRaise budget by employee group
| Group | Employees | Current payroll | Total raise % | Salary raise pool | Employer cost increase | Avg raise / employee |
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Raise sensitivity
All group raise components scaled togetherBudget impact if raises are higher or lower
| Raise scale | Weighted raise | Salary raise pool | Annual employer cost | Monthly run rate | Current-year cash impact |
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Effective-date sensitivity
Annual run rate unchangedCurrent-year cost by effective month
| Effective month | Months impacted | Prorated recurring cost | One-time pool | Current-year cash impact |
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Workforce-size sensitivity
Group mix held constantBudget impact as headcount changes
| Headcount scale | Approx. employees | Current payroll | Salary raise pool | Annual employer cost increase | Current-year cash impact |
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Scope
Raise budgets depend on the employer costs you include
This calculator estimates compensation-budget impact from the assumptions entered. Payroll taxes, benefit structures, bonus plans, overtime effects, equity compensation, salary caps, union agreements and location-specific requirements can materially change actual cost. The tool does not recommend individual compensation decisions or substitute for payroll, HR, tax or legal review.