DollarMath

Home › Calculators › Pay Raise Calculator

Pay Raise Calculator

See your new salary, what the raise adds to each paycheck after tax, and whether it beats inflation.

Example: a 5% raise on $60,000

Your salary rises by $3,000 to $63,000, or from $28.85 to $30.29 an hour on a 40-hour week. Before tax that is $250 more a month. After federal tax and FICA in a state with no income tax, a single filer keeps about $2,400 of the $3,000, roughly $92 more per biweekly paycheck.

Prices rose about 2.6% from 2024 to 2025 (CPI-U annual average), so the real raise is (1.05 ÷ 1.026) − 1 ≈ 2.3%.

Raise formulas

  • New salary = Old salary × (1 + raise %)
  • Raise % = (New − Old) ÷ Old × 100
  • Real raise = (1 + raise %) ÷ (1 + inflation) − 1

Negotiating a raise

  • Know your market rate from job listings and salary surveys for your role and city.
  • List concrete results: revenue won, costs saved, projects delivered.
  • Ask for a specific number a little above your target.
  • If the salary budget is fixed, ask about a bonus, extra paid time off, a title change, or a review date in six months.

Frequently asked questions

How do I calculate a raise percentage?

Divide the raise by your old pay and multiply by 100. Going from $60,000 to $63,000 is a $3,000 raise, and 3,000 ÷ 60,000 = 5%.

What is a normal raise?

US employers have budgeted average merit raises of around 3% to 4% a year recently. Promotions and job changes often bring 10% to 20%.

What is a real raise?

Your raise after inflation. If prices rose 2.6% over the year, a 5% raise increases your buying power by only about 2.3%. A raise smaller than inflation is a pay cut in real terms.

Related calculators