Your current salary
$
Your pay cut
%
Your new annual salary
| New pay per hour | |
| New pay per week | |
| New pay per month | |
| New pay per year | |
| You lose per month | |
| You lose per year |
How to use this calculator
Choose your currency, enter your current pay and whether it is hourly, monthly or annual. Then enter the cut as a percentage or a fixed amount in the same period as your pay. Hourly figures assume 2,080 paid hours a year.
How to calculate a pay cut
- Take your current annual salary (e.g. $60,000)
- Multiply it by the cut percentage divided by 100 (e.g. 10% = 0.10, so $6,000)
- Subtract that from your salary: $60,000 − $6,000 = $54,000
- Monthly impact: $6,000 ÷ 12 = $500 less per month
To find the cut percentage from two salaries, divide the difference by your old salary and multiply by 100. Going from $60,000 to $54,000 is a 10% cut.
Before you accept a pay cut
Check whether the cut is temporary and when pay will be restored, whether your hours or duties change with it, and how it affects benefits tied to salary such as pension contributions or bonuses. A pay cut also lowers the base for future raises, so a 10% cut followed by a 10% raise leaves you 1% below where you started.
Frequently asked questions
How do I calculate a pay cut percentage?
Subtract your new salary from your old salary, divide by your old salary, then multiply by 100. A drop from $50,000 to $45,000 is a 10% pay cut.
How much is a 10% pay cut on $50,000?
A 10% cut removes $5,000 a year, leaving $45,000, or about $417 less per month.
Does a 10% raise undo a 10% pay cut?
No. A 10% cut takes $50,000 to $45,000, and a 10% raise on $45,000 only brings you to $49,500. You need about an 11.1% raise to get back to $50,000.
Is a pay cut the same as a reduction in hours?
Not always. A pay cut lowers your rate for the same work, while reduced hours keep your rate but pay you for fewer hours. Both lower your total pay.