Pay Raise Calculator
A Pay Raise Calculator is a tool that shows your new salary after a percentage, dollar, or target-pay increase. Enter your current annual pay and raise details to see your new gross salary, monthly pay, and biweekly pay instantly. A 3% raise is standard at most companies, while 5 to 10% signals strong performance.
A bigger raise starts with a stronger case
Update your resume with quantified wins before your next compensation conversation.
How to Calculate a Pay Raise (Formula + Examples)
The most common way to calculate a pay raise is with a percentage. Multiply your current annual salary by the raise percentage, then add that amount to your current pay. The formula is straightforward:
Example 1 — percentage raise: You earn $75,000 and receive a 5% raise. Multiply $75,000 by 0.05 to get $3,750. Add that to your base: $75,000 + $3,750 = $78,750 per year. Your monthly gross pay becomes $78,750 ÷ 12 = $6,562.50.
Example 2 — dollar raise: Your manager offers a $4,000 annual increase on a $68,000 salary. New salary = $72,000. To find the percentage: $4,000 ÷ $68,000 = 0.0588, or about 5.9%.
Example 3 — target salary: You want to reach $90,000 from $82,000. The increase is $8,000 (9.76%). Use the calculator above with "New salary" mode to see monthly and biweekly pay at your target.
For take-home pay after taxes and deductions, pair this tool with our paycheck calculator. For market benchmarks before you negotiate, use the salary calculator.
What's a Good Raise?
Context matters — industry, location, company size, and your performance all shape what counts as a "good" raise. Still, these ranges help you benchmark offers and annual reviews:
| Raise range | Typical meaning |
|---|---|
| 3–5% | Standard cost-of-living or merit increase in many corporate environments |
| 5–10% | Strong performance, expanded scope, or retention adjustment |
| 10–20% | Excellent — often tied to promotion, critical skills, or correcting underpayment |
| 20%+ | Rare without a title change; common when switching employers |
SHRM and many employers have budgeted roughly 3–4% for annual merit pools in recent cycles. If inflation runs higher than your raise, your real purchasing power can shrink even when your paycheck grows. That is why comparing your pay to market medians — and knowing your numbers before the conversation — matters.
If your raise feels low relative to peers, document your impact and explore whether a title change, bonus, or equity could close the gap. Our negotiation guide walks through scripts and timing.
How to Negotiate a Raise (5 Steps)
- Research your market value. Use BLS wage data, salary surveys, and our salary calculator to know the range for your role and city. Enter your role and state in the calculator above to see how your pay compares to estimated medians.
- Document achievements with numbers. Revenue influenced, costs saved, projects shipped, team size led — quantified wins are harder to dismiss. Refresh your resume builder so your internal profile and external materials stay aligned.
- Pick the right moment. Annual review cycles, after a major deliverable, or when you have taken on responsibilities above your level are natural openings. Avoid asking during layoffs or budget freezes unless you have a competing offer.
- Ask for a specific number. Lead with data: "Based on market rates and my contributions this year, I am requesting a move to $X." Use this pay raise calculator to show the percentage equivalent of your target.
- Follow up in writing. Summarize what you agreed to, or send a brief recap if the answer was "not now." Ask what milestones would support a raise at the next review. Read the full salary negotiation guide for email templates and counter-offer tactics.
Negotiation is a skill, not a confrontation. Managers who understand your market value and see clear evidence of impact are more likely to advocate for you in compensation committees.
Pay Raise Calculator Examples
These examples use the same math as the calculator above — percentage raises on common US salary levels.
| Current salary | Raise % | New salary | Increase | New monthly (gross) |
|---|---|---|---|---|
| $50,000 | 3% | $51,500 | $1,500 | $4,292 |
| $75,000 | 5% | $78,750 | $3,750 | $6,563 |
| $100,000 | 10% | $110,000 | $10,000 | $9,167 |
A 3% raise on $50,000 adds $1,500 per year — about $125 per month before tax. A 10% raise on $100,000 adds $10,000 annually, or roughly $833 per month gross. After federal, state, and FICA withholding, your net increase will be smaller; use the paycheck calculator to model deposits.
Percentage vs Dollar vs New Salary: Which Input to Use
HR often communicates raises as a percentage during annual reviews. If your manager says "you are getting 4%," use percentage mode. If they name a dollar figure — "we are adding $6,000 to your base" — switch to dollar amount mode. If you have a target compensation number from a job offer or market research, enter it as the new salary and let the tool compute the implied percentage.
Biweekly pay assumes 26 pay periods per year, which is standard for many US employers. Semi-monthly schedules (24 periods) would show slightly different per-check amounts. Monthly figures divide annual gross by 12. None of these figures include overtime, bonuses, commissions, or benefits — only base salary math.
When evaluating a new job, compare total compensation: base, bonus target, equity, 401(k) match, and health premiums. A 5% raise at your current employer might be beaten by a lateral move with a 15% base bump. Run your resume against target postings with job match score before you apply externally.
Cost-of-Living Raises vs Merit Raises
A cost-of-living adjustment (COLA) is meant to preserve purchasing power when prices rise. Employers may apply a flat percentage across the workforce — often in the 2–4% range. A merit raise rewards individual performance and can stack on top of COLA or replace it, depending on company policy.
If you receive only a COLA while taking on a senior workload, you are effectively accepting a real pay cut relative to responsibility. Use market data to show the gap between your new salary and role medians in your state. The comparison callout in our calculator estimates how far above or below typical pay you sit before and after the raise.
Median estimates draw on national occupational wage patterns adjusted for state wage indexes. They are directional benchmarks, not offers of employment or guarantees. For role-specific ranges, cross-check BLS Occupational Employment and Wage Statistics (OEWS) tables for your metro area.
Methodology
Raise calculations use integer cents to avoid floating-point rounding errors. Percentage raises multiply current annual pay by the raise rate and round to the nearest cent. Dollar and new-salary modes derive the implied percentage from the change divided by current pay. Monthly gross divides annual salary by 12; biweekly gross divides by 26.
Market comparison medians use approximate national occupational medians adjusted by a simplified state wage index. Sources include BLS OEWS wage data and SHRM salary increase budget surveys. Figures are updated periodically and rounded for readability.
Frequently Asked Questions
Multiply your current salary by the raise percentage, then add that amount to your current pay. Formula: New salary = Current salary × (1 + raise % ÷ 100). Example: $75,000 with a 5% raise → $75,000 × 1.05 = $78,750. You can also work backward from a target salary or a fixed dollar increase.
In typical corporate environments, 3% is a standard cost-of-living adjustment, 5–7% signals strong performance, and 10% or more is excellent or tied to a promotion. SHRM and many employers budget roughly 3–4% for annual merit pools in recent years. Industry, location, and tenure all shift what counts as good.
A 3% raise on $50,000 is $1,500 per year ($125 per month before tax). On $75,000 it is $2,250 ($187.50 per month). On $100,000 it is $3,000 ($250 per month). Use this pay raise calculator to see your exact numbers.
Document achievements with metrics, research market pay for your role, schedule a dedicated conversation (not a surprise hallway ask), present your case calmly, and propose a specific number or range. Follow up in writing. See our salary negotiation guide for scripts and timing.
A raise can push more of your income into a higher marginal tax bracket, but only the dollars above each threshold are taxed at the higher rate — not your entire salary. A modest 3–5% raise rarely changes your bracket dramatically unless you are near a bracket edge.
Many employers review compensation annually. High performers may negotiate outside the cycle after major wins. If you have not had a meaningful increase in 18–24 months while taking on more responsibility, it is reasonable to ask.
You can negotiate before you start if the offer is still open, but after signing it is harder. Focus on a six-month review clause, performance bonus, or title upgrade written into your offer. Once employed, use your review cycle to make the case.
A cost-of-living adjustment (COLA) is meant to keep pay pace with inflation and living costs. It is often 2–4% and may apply broadly across employees rather than rewarding individual performance. It is different from a merit raise tied to your results.
Sources
Disclaimer
Estimates only. Not financial advice.
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Last updated: September 2026
By Peter Miller