PortioOpen appGuides · By the Portio team ·
Pay raise calculator: what to do with a raise
Decide where the raise goes before the first larger salary arrives: keep your bills where they are, keep a part to enjoy, and send the rest to savings and debt. Because your bills did not rise with your pay, a raise of 10% grows the money for your goals by more than 10%. Type your old pay and your new pay to see where the difference lands.
- Giving5%15
- Savings24%71.25
- Investment19%57
- Trips14%42.75
- Debt38%114
Your pay rose 10%. Your bills did not, so the money you split rose 16%, from 1,800 to 2,085.
Read the full guide
Why does a raise disappear?
Because spending rises to meet income. No single change is large: a better phone plan, more meals delivered, a slightly nicer flat. Six months later the new salary feels as tight as the old one.
Living better is the point of earning more. The problem is when it happens without a decision.
Why is a raise worth more than its percentage?
Your bills take a fixed amount, so every extra unit lands after them. Take a salary that goes from 3,000 to 3,300, with 5% giving and 1,050 of bills:
| Before | After | Change | |
|---|---|---|---|
| Salary | 3,000 | 3,300 | +10% |
| Giving, 5% | 150 | 165 | +15 |
| Bills | 1,050 | 1,050 | 0 |
| Left to split | 1,800 | 2,085 | +16% |
Pay rose by 10%. The money for savings, debt and enjoyment rose by 16%.
It works the other way too. Move to a home that costs 285 more and the whole raise is gone. So the first decision about a raise is about your bills.
How much of a raise should I keep for myself?
A simple rule: half for now, half for later. Of the 285 extra each month, about 140 makes your life better today and about 145 goes to savings or debt. You feel the raise, and so do your goals.
Lean further toward later if you have debts that charge interest or no emergency fund yet: a quarter for now and three quarters for later, until they are dealt with. Both are covered in debt or savings first.
If you already split by percentages, the raise is divided for you. With savings at 25%, investment at 20%, trips at 15% and debt at 40%, the extra 285 becomes 71.25, 57, 42.75 and 114.
What should I do in the first month?
- Wait for the first real payslip. Tax and deductions can take more than you expect. Plan on what arrives.
- Update your plan before payday, with the new amount.
- Raise your savings transfer the same day. You cannot miss money you never got used to.
- Choose one upgrade you really want. Skip the ones you would not notice.
- Leave your bills alone for three months. Decide on a larger cost once you know what the new salary really leaves.
What about a bonus or a one-time payment?
It is not a raise, so do not raise a monthly cost because of it. Money that comes once cannot pay a bill that comes twelve times.
Use the same order as any payday: giving first, then what is missing in your emergency fund or your debts, then a part to enjoy. Your salary already covers the month's bills, so all of a bonus can go to those three.
Should I change my percentages?
Not because of the raise. Percentages follow your income by themselves.
It is a good moment to review them, though. If a debt is gone or your emergency fund is full, move that share to the next goal. The steps are in how much of your salary to save.