Enter an old and new salary to see the percent change, and the exact percent needed to reverse it back to the original.
A 10% raise and a 10% pay cut don’t cancel each other out, because each percentage is calculated from a different base amount. This tool shows the percent change from old to new, and the exact (different) percent that would be needed to get back to the original number.
Old salary ($):
New salary ($):
Why a Raise and Its Reversal Aren’t Equal Percentages
A 10% raise and a 10% pay cut don’t cancel each other out, because each percentage is calculated from a different base amount. This tool shows the percent change from old to new, and the exact (different) percent that would be needed to get back to the original number.
How to Use This Calculator
- Enter the old salary.
- Enter the new salary.
- Click Calculate to see the percent change and the percent needed to reverse it.
This same math applies to any before-and-after percentage change, not just salaries, including prices, discounts, or investment values.
The Formulas
- Percent change = (new − old) ÷ old × 100
- Percent to reverse = (old − new) ÷ new × 100
Worked example (raise): a salary goes from 50,000 to 55,000. That is a 10% raise. To reverse it, you would need to lose 5,000 out of the new 55,000, which is 9.09%. A 9.09% cut takes you back to exactly 50,000.
Worked example (cut): a salary drops from 50,000 to 45,000, a 10% cut. To get back to 50,000, you need 5,000 out of 45,000, which is an 11.11% raise.
Quick Reference
| If it goes up by | It must fall by | If it falls by | It must rise by |
|---|---|---|---|
| 10% | 9.09% | 10% | 11.11% |
| 20% | 16.67% | 20% | 25% |
| 25% | 20% | 25% | 33.33% |
| 50% | 33.33% | 50% | 100% |
Where This Matters in Real Life
This asymmetry shows up whenever a starting amount changes and then changes back. If a store raises a price by 25% and later “reduces it 25%,” the customer pays more than the original price. If an investment falls 50%, it needs to double to recover. If you accept a temporary 10% pay reduction, you will need an 11.1% raise, not a 10% one, to return to where you started. Understanding this makes it easier to negotiate, check advertised deals, and judge headlines about gains and losses.
Did You Know?
- A 50% pay cut requires a 100% raise (doubling the new, lower salary) to get back to the original amount.
- This asymmetry is the same reason a stock that drops 50% needs to gain 100% to return to its starting price.
Frequently Asked Questions
Why isn’t reversing a 10% raise just another 10% cut?
Because a raise is calculated on the old, smaller salary, while reversing it is calculated on the new, larger salary; the same dollar amount is a smaller percentage of a bigger number.
Does this work for pay cuts too?
Yes. Enter the smaller number as the new salary, and this tool will show the raise percentage needed to fully reverse the cut.
Why isn’t a 10% cut undone by a 10% raise?
The second percentage applies to a different base. A 10% cut leaves 90% of your pay, and 10% of that smaller amount is only 9, so you end at 99%. You need an 11.11% raise to get back to 100%.
Does this include taxes or benefits?
No. It works on the gross figure you enter. Taxes, deductions, and benefits change take-home pay separately.