Use this free raise calculator to see exactly what a pay increase means for you. Enter your current salary and either a percentage or a dollar amount, and it shows your new annual, monthly, biweekly and hourly pay.
Figures are before tax. Your take-home increase will be lower after federal, state and payroll taxes.
How to calculate a raise
Raise as a percentage
New salary = current salary × (1 + raise % ÷ 100)
Example: $60,000 with a 5% raise = $60,000 × 1.05 = $63,000, an increase of $3,000 a year or $250 a month.
Raise percentage from two salaries
Raise % = (new salary − old salary) ÷ old salary × 100
Example: going from $60,000 to $66,000 = $6,000 ÷ $60,000 × 100 = 10%.
Hourly to annual
Annual pay = hourly rate × hours per week × 52
Example: $25/hour × 40 hours × 52 = $52,000 a year.
What is a good raise?
- Cost-of-living adjustment: usually in line with inflation, often around 2–4%.
- Standard merit raise: typically about 3–5% for solid performance.
- Strong performance or market correction: 6–10% or more.
- Promotion: often 10–20%, depending on the new level.
- Changing jobs: a new employer often pays 10–20% more than your current salary.
If your raise is lower than inflation, your pay is falling in real terms even though the number went up.
How to use your result
Know your number before you ask. Use the calculator to test a few scenarios (say 5%, 8% and 12%), then compare them with market salary data for your role. When you’re ready, follow our step-by-step guide on how to ask for a raise, including scripts you can adapt.
Thinking about a bigger move? Read about post-30 career change bottlenecks and unlocks.
FAQ
How do I calculate a 3% raise?
Multiply your salary by 1.03. For example, $50,000 × 1.03 = $51,500, which is $1,500 more a year.
How much is a 5% raise on $20 an hour?
$20 × 1.05 = $21 an hour. At 40 hours a week, that’s about $2,080 more a year before tax.
Is a 10% raise good?
Yes. A 10% raise is well above a typical merit increase and usually reflects strong performance, a promotion or a market adjustment.
Does a raise put me in a higher tax bracket?
Only the part of your income above a bracket threshold is taxed at the higher rate. A raise never lowers your take-home pay because of brackets.
