Pay Raise Calculator
Work out exactly what a raise means for your pay. Enter your current pay in any pay period, then a raise percentage, a flat increase, or your new pay, and see the new figure broken down per hour, week, two weeks, month and year. An optional inflation check shows the real value of the raise.
Formula
Worked example
A 5% raise on $60,000: increase = 60,000 x 0.05 = $3,000, so new pay is $63,000 a year, about $5,250 a month. Solving in reverse, a jump from $60,000 to $63,000 is a (63,000 - 60,000) / 60,000 = 5% raise. At 3% inflation the real raise is (1.05 / 1.03) - 1 = 1.94%.
How a pay raise is calculated
A percentage raise increases your pay by that fraction of its current value. Multiply your current pay by the raise written as a decimal to find the increase, then add it back to get the new pay. Equivalently, multiply by one plus the raise, so a 5% raise means multiplying by 1.05. If instead you know the flat amount of the increase, the raise percentage is the increase divided by your current pay, times 100. And if you already know your new pay, the raise is simply the new pay minus the old pay. This calculator handles all three: a percentage, a flat amount, or a new pay figure, and solves for whatever is missing.
Any pay period, converted automatically
Pay can be quoted by the hour, week, two weeks, twice a month, month or year, and a raise looks very different depending on which you use. Enter your pay in whichever period is natural to you and the calculator converts everything to a yearly figure using the standard counts: 52 weeks, 26 fortnights, 24 semi-monthly periods and 12 months in a year. For an hourly rate it multiplies by your hours per week and then by 52. The breakdown table then shows your before, after and increase side by side for every pay period, so you can see the same raise as both a small change per hour and a larger change per year.
Gross pay, tax, and the real value after inflation
The figures here are gross, meaning before tax. Because income tax is usually progressive, part of a raise can fall into a higher bracket, so your take-home increase is smaller than the headline number. Only income above each threshold is taxed at the higher rate, so a raise never reduces your overall take-home pay, a common myth. A raise also lifts only your nominal pay; its real value depends on inflation. Turn on the inflation check to divide your raise by price growth: a 5% raise during 3% inflation is worth about 1.9% in real terms, while a raise below the inflation rate means your buying power actually shrinks even though your paycheck is larger.
How US pay raises typically compare
| Raise size | What it usually means |
|---|---|
| 1-2% | Below typical inflation; often a real pay cut |
| 3-4% | Around the long-run average cost-of-living raise |
| 5-7% | Above average; common with a promotion or strong year |
| 10%+ | Large; usually a role change, counteroffer or job switch |
Rough guide to annual raises; actual figures vary by year, industry and role.
Frequently asked questions
How do I calculate a 5% raise?
Multiply your current pay by 0.05 to get the increase, then add it to your pay. On $60,000 that is 60,000 x 0.05 = $3,000, giving $63,000. You can also multiply directly by 1.05. This works for any pay period: do it on the hourly, weekly or monthly figure and the result is the same percentage.
How do I find the percentage raise if I only know the new pay?
Subtract your old pay from the new pay, divide by the old pay, then multiply by 100. For example, going from $60,000 to $63,000 is (63,000 - 60,000) / 60,000 x 100 = 5%. Switch the calculator to "New pay" mode and it solves this for you automatically.
Is this my take-home pay after the raise?
No. These figures are gross, before income tax and payroll deductions. Your actual take-home increase will be smaller, since part of the raise is taxed and some may go to retirement or benefit contributions. Tax brackets are marginal, though, so a raise always increases your total take-home pay.
What is a real raise after inflation?
It is your raise measured in buying power rather than dollars. Divide one plus your raise by one plus inflation, then subtract one. A 5% raise with 3% inflation is a real raise of about 1.9%. If your raise is below the inflation rate, your real pay falls even though the number on your payslip went up. Turn on the inflation check to see this.