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Pay Raise Calculator

Enter your current pay and the raise you were offered. See the new figure, the dollar difference, and what it is worth after inflation.

Pay Raise Calculator

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Used for the hourly figures. Leave it at 40 if you are not sure.

What do you know about the raise?

%

The percentage you were offered, or the one you plan to ask for.

New salary per year

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Raise per year

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Increase

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Enter your current pay and the raise to see every figure update as you type.

PeriodNowAfter the raiseDifference
Per year---
Per month---
Every two weeks---
Per week---
Per hour---
Guide

How do you calculate a pay raise percentage?

A raise percentage is the increase divided by what you earn now. Written out, the formula is:

The formula

Raise percentage = (new pay minus current pay) divided by current pay, multiplied by 100

Both figures have to cover the same period. Compare a yearly salary with a yearly salary, or an hourly rate with an hourly rate, never one against the other.

Worked example

Take someone on $85,000 who is offered $88,400. The increase is $3,400. Divide 3,400 by 85,000 and you get 0.04, and multiplying by 100 gives a 4 percent raise. To run it the other way, multiply your current pay by 1 plus the percentage as a decimal: 85,000 times 1.04 is 88,400.

That is the whole calculation, and it is worth doing by hand once so you can sanity check any number an employer gives you. The calculator above then handles the parts people actually get wrong: converting between hourly, weekly, biweekly, monthly and yearly pay, and working out the difference per paycheck rather than per year.

For scale, the national median wage across all US occupations in the federal data behind our career pages is $50,980 a year. A 4 percent raise on that figure is about $2,039 a year, or roughly $78.43 in each biweekly paycheck before tax.

What is a typical pay raise?

There is no single correct number, and anyone quoting one without context is guessing. What does exist is a set of ranges that come up consistently in employer salary budget surveys and in the advice built on them:

3 to 5%

Annual merit raise, same role

Commonly cited at around 3 to 5 percent. This is the standard cost of living and performance adjustment most companies budget for each cycle.

10 to 20%

Promotion or a genuine step up in scope

Often described as around 10 to 20 percent, because the job itself has changed rather than the year having passed.

Biggest jump

Moving to a new employer

Frequently the largest single jump available, which is why people who never leave can drift below the market rate for their own job.

Treat those as reference points, not entitlements. The real answer depends on your industry, your location, how your employer is performing, and how far your current pay sits from the market rate for the work you are doing today. A 3 percent raise in a strong year at a profitable company reads very differently from 3 percent during a hiring freeze.

Is a raise below inflation still a raise?

Not in the way that matters. If your pay rises 2 percent while prices rise 3 percent, you can buy less at the end of the year than you could at the start. The rough real terms calculation is simple: subtract the inflation rate from your raise percentage. A 4 percent raise against 3 percent inflation is about 1 percent of real progress.

This is why the phrase cost of living adjustment matters. An adjustment that only matches inflation keeps you where you are. It is not a reward for a strong year, and it should not be presented as one. Check the current 12 month change in the Consumer Price Index published by the Bureau of Labor Statistics before your review, so you know which conversation you are actually having.

The gap compounds year after year

Over several years the gap compounds. Three consecutive years of a raise one point below inflation leaves you meaningfully worse off, even though your salary went up every single year. Run each year through the calculator above and compare the percentage with inflation for the same period rather than looking only at the dollar figure.

How does a raise show up in your paycheck?

The annual number is the one people quote and the paycheck number is the one they feel. A $3,400 raise sounds substantial, and across 26 biweekly paychecks it is about $130 each time before tax. Neither figure is more honest than the other, but you should know both before you accept or push back.

Pay schedules vary. Biweekly means 26 paychecks a year, semi monthly means 24, and monthly means 12. The breakdown table above splits the difference across every period so you can see the change at the scale you experience it. Every figure there is gross, before withholding, so the amount that lands in your account will be smaller.

How do you turn the number into an ask?

Knowing the figure is the easy half. Asking well is the part that decides whether you get it. Anchor on a specific number rather than a vague request, come with evidence of what you have delivered since your last increase, and raise it early enough in the budget cycle that your manager can still do something about it.

If you are not sure how to open the conversation, our guide on how to ask for a raise walks through the timing, the framing, and the case to make. When you need it in writing, the salary negotiation email generator drafts the message around your own numbers, including a counter offer after a job offer.

Two habits make the ask stronger. Ask for a range with your target at the bottom of it, so the compromise still lands where you wanted. And separate the raise conversation from the performance review where you can, since review meetings are usually held after the budget has already been set.

Pay raise questions

Is a 3% raise really a raise?

It depends entirely on what prices did over the same year. A 3 percent raise while inflation runs at 2 percent leaves you slightly better off in real terms. The same 3 percent while inflation runs at 5 percent is a pay cut of about 2 percent, even though the number on your contract went up. Look up the current 12 month CPI figure from the Bureau of Labor Statistics before you decide whether to accept it quietly.

Is a 5% raise per year good?

Five percent sits at the top of the range commonly quoted for annual merit increases, so in a normal year at a normal employer it is a good outcome for staying in the same role. It is a weaker outcome if it came with significantly more responsibility, a new title, or a market rate that has moved further than that. Judge it against the size of the job you are doing now, not the job you were hired into.

Is a 4% pay increase good?

Four percent is around the middle of the range usually cited for merit raises and is a solid result for a year without a promotion. On an $85,000 salary it is $3,400 a year, or about $130 in each biweekly paycheck before tax. Whether it is enough depends on inflation over the same period and on what the same job pays elsewhere.

How do I calculate a raise on an hourly wage?

The percentage works the same way. Multiply your current rate by the raise percentage and add it on, so $22 an hour with a 4 percent raise becomes $22.88. To see the yearly effect, multiply the increase by your hours a week and by the weeks you work, or set the frequency above to per hour. The hourly to salary calculator converts the whole rate for you.

Does this calculator show take-home pay after taxes?

No. Every figure here is gross pay, before federal and state tax, Social Security, Medicare, insurance, and retirement contributions. That is deliberate, because withholding depends on your state, your filing status, and your benefit elections. Your take-home increase will be smaller than the gross increase shown above, and a raise never pushes your whole income into a higher bracket, only the dollars above the threshold.

How do I work out the percentage difference between two salaries?

Subtract the old salary from the new one, divide the result by the old salary, then multiply by 100. Going from $60,000 to $67,500 is 7,500 divided by 60,000, which is 0.125, so 12.5 percent. Use the same method to compare a job offer against your current pay, as long as both figures are for the same period.

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