Pay Raise Calculator

To calculate your new salary after a raise, multiply your current pay by 1 plus the raise percent divided by 100. A 5% raise on a $60,000 salary gives a new salary of $63,000: an extra $3,000 a year, about $250 a month, or roughly $30.29 an hour. This pay raise calculator works in both directions: percent to dollars, or a dollar amount back to a percentage.

Doing business math instead of salary math? The Margin and Profit Margin calculators turn cost and price into a profit percentage, the Markup calculator marks a cost up to a selling price, and the Freight Class calculator finds an NMFC shipping class from density. Use this pay raise tool when the percentage you care about is a change to someone's wage or salary.

How a pay raise is calculated

The core formula is short. Your new pay is your current pay multiplied by one plus the raise percentage:

The raise amount on its own is simply Current pay × (Raise% ÷ 100). If instead you know the dollar raise and want the percentage, flip the formula:

Those three relationships are all this calculator needs. Everything else (your new hourly, monthly and annual pay) comes from converting between pay periods, which is just multiplying or dividing by how many of each period there are in a year.

A worked example with percentages

Suppose you earn $60,000 a year and your manager approves a 5% merit raise. The raise amount is $60,000 × 0.05 = $3,000, so your new salary is $63,000. Spread over 12 months, that is an extra $250 per month before tax. Converted to an hourly rate at 2,080 hours a year, your pay rises from about $28.85 to about $30.29 per hour. Keep in mind these are gross figures: after federal, state and payroll taxes, the amount that actually reaches your paycheck will be less (see the after-tax example below).

A worked example from a dollar amount

Now flip it around. Say you are offered a $5,000 raise on the same $60,000 salary and want to know how that stacks up as a percentage. Divide $5,000 by $60,000 to get 0.0833, or an 8.33% raise, well above the 3.2% average growth in wages and salaries over the year to June 2026 (BLS Employment Cost Index). Your new salary becomes $65,000, about $417 more per month. Expressing a dollar raise as a percentage is the quickest way to judge whether an offer is generous relative to your current pay.

How much is a 3%, 5%, or 10% raise? New salary by starting pay

This matrix applies the formula above to the raise sizes and salaries people search for most. Each cell shows the new annual salary, with the yearly increase in gray beneath it. Read down your raise percentage and across to your current salary.

Gross (pre-tax) figures. New salary = starting pay × (1 + raise% ÷ 100); the gray value is the annual increase.

Step by step: a 5% raise on $60,000

Here is the full calculation broken into the exact steps the tool runs, so you can reproduce any raise by hand.

Assumes 2,080 paid hours a year (40 hours × 52 weeks). Figures are gross, before taxes and deductions.

Worked example: an hourly raise

Raises are not only for salaried roles. If you make $22.00 an hour and receive a $1.50 raise, your new rate is $23.50, a 6.82% increase. At 40 hours a week, that is about $60 more per week, roughly $3,120 more per year. Because FLSA overtime is paid at no less than 1.5 times your regular rate, a higher base also quietly bumps up your overtime pay. Set the calculator to "per hour" and enter your weekly hours to see the weekly, monthly and annual totals; the Hourly to Salary Calculator does the same conversion if you only want the annual figure.

How to use this pay raise calculator

You only need two or three numbers. Work through the fields in order:

1. Current pay: enter your existing pay and choose the period it is measured in: hourly, weekly, biweekly, monthly or yearly.
2. Hours per week: set your typical weekly hours. For hourly pay they convert your rate to weekly, monthly and annual pay; for other periods they set the hourly figure.
3. Raise type: pick "by percentage" if you know the percent, or "by dollar amount" if you know the dollar figure of the raise.
4. Raise value: type the percentage (e.g. 5) or the dollar amount (e.g. 3000) in the same period as your current pay.

The result updates as you type and shows your new pay in large type, the raise amount, and the raise percentage. A negative entry is treated as a pay cut and labeled as one. Below that, the "new pay across periods" table converts everything to hourly, weekly, biweekly, monthly and annual so you can read whichever number fits your situation.

How much more is my raise per paycheck?

Once you know the yearly increase, this quick reference splits it across pay periods so you can see the raise the way it actually lands in your paycheck. Find your annual raise on the left and read across.

Monthly ÷ 12, biweekly ÷ 26, weekly ÷ 52, hourly ÷ 2,080. Gross amounts before tax; your take-home increase will be smaller after withholding.

Who this calculator is for

Anyone trying to translate a raise into real money will find a use for it. That includes:

• Employees who just got a raise and want to know their new salary and monthly pay.
• Job seekers comparing an offer's raise against their current pay before they accept.
• Hourly workers checking what a new rate means per week, month and year.
• Anyone negotiating who wants to convert between a percentage ask and a dollar figure on the spot.
• Managers and HR sanity-checking a proposed increase across pay periods.

How fast is U.S. pay rising? Official benchmarks

There is no official "standard raise," but the Bureau of Labor Statistics measures how fast pay and prices are rising. Its Employment Cost Index tracks wages for a fixed set of jobs, so it shows pay growth for the same work rather than raises from promotions or job changes. Compare your raise with these figures:

Sources: BLS Employment Cost Index news release of July 31, 2026, and Consumer Price Index news release of September 11, 2026 (not seasonally adjusted). Both are updated regularly; check the latest release for your year.

Different kinds of raise serve different purposes. A merit raise rewards individual performance. A cost-of-living adjustment aims to keep buying power level with inflation. A promotion pays for a bigger role, and a job change resets your pay to a new employer's offer. Whatever the label, the test is the same: a raise above inflation increases what your pay can buy; a raise below it does not.

Gross vs. take-home: what you actually keep

This calculator shows gross pay, the figure before anything is withheld. A raise increases your taxable income, so the extra money is reduced by federal income tax, state income tax (in most states), and the payroll taxes for Social Security and Medicare. For example, for a single filer whose salary rises from $60,000 to $63,000 in 2026, federal income tax goes up by $360.00 (the extra pay stays in the 12% bracket) and Social Security and Medicare take $229.50, so about $2,410.50 (80%) of the $3,000 raise remains before any state income tax. The share you keep is lower in higher brackets and in states with an income tax. To see the real after-tax figure, drop your new salary into the Paycheck Calculator. A higher salary can push part of your income into a higher tax bracket, but only the dollars above each threshold are taxed at the higher rate; your whole income is never taxed at the top rate.

Why raises compound over a career

Each raise is applied to your new pay, not your original salary, so increases compound. Starting at $60,000, three consecutive 5% raises give $63,000, then $66,150, then $69,458, about $458 more than if each 5% were taken on the original $60,000. Over decades, the gap between someone who negotiates a slightly larger raise early and someone who does not can grow into tens of thousands of dollars, because every future raise builds on a higher base.

Key terms explained

• Base pay: your fixed wage or salary, before bonuses, overtime or commissions. A raise normally changes base pay.
• Gross pay: total pay before taxes and deductions, which is what this calculator reports.
• Net (take-home) pay: what lands in your bank account after withholding.
• Merit raise: an increase tied to individual performance.
• Cost-of-living adjustment (COLA): a raise meant to offset inflation and preserve buying power.
• Real vs. nominal raise: a "nominal" raise is the headline percentage; a "real" raise subtracts inflation. A 3% raise in a 4% inflation year is a real pay cut.

Tips for getting the most from a raise

• Negotiate in dollars and percent: know both so you can respond to either framing in a conversation.
• Compare against inflation: if your raise is below the inflation rate, your buying power fell, so aim higher.
• Direct part of it to savings: raising your 401(k) contribution by the size of the raise lets you save more without feeling a budget squeeze.
• Look at total compensation: a smaller raise with better benefits or bonus potential can beat a larger raise without them.
• Think long-term: because raises compound, a slightly larger increase now pays off for years.

Limitations and assumptions

This tool is a planning estimate, not payroll advice. Keep these assumptions in mind:

• All figures are gross; taxes and deductions are not modeled.
• Hourly conversions assume 2,080 hours a year (40 x 52) unless you change the weekly hours; unpaid time off or variable schedules will differ.
• It covers a raise to base pay only, not bonuses, overtime, commissions or equity.
• It does not account for inflation; compare your raise to the current inflation rate to judge real gains.

How to negotiate a raise with numbers

The strongest raise conversations are built on figures, not feelings, and this is where running the math in advance pays off. Before you ask, decide on a specific target, both as a percentage and as a dollar amount, so you can respond no matter how your manager frames the offer. If the budget is described in percent ("we have 4% to work with"), you already know that on a $70,000 salary 4% is $2,800; if it is framed in dollars ("I can do another $2,500"), you can instantly recognize that as a 3.6% raise. Anchoring slightly above your true target leaves room to settle in the middle, and tying the request to documented results (revenue you brought in, costs you cut, projects you led) gives the number a reason to exist. When a cash raise is not available, the same math helps you value alternatives: an extra week of paid time off, a larger bonus target, a remote-work allowance, or a title change that raises your future earning floor. Whatever the form, convert it into an annual dollar figure so you are comparing like with like.

It also helps to know the timing. Many companies set raise budgets during an annual review cycle, so a request that lands a month after budgets are locked has little room to move. If you have just taken on a materially bigger role, an off-cycle adjustment is a fair ask, and the gap between your old and new responsibilities is exactly the kind of evidence that justifies a number above the economy-wide pace of wage growth (3.2% in the year to June 2026, according to the BLS Employment Cost Index).

What changes your raise the most

If you experiment with the inputs, you will see that two levers dominate the result, while the rest mostly reshape how it is displayed:

• The raise percentage (or amount): the single biggest driver. The difference between a 3% and a 6% raise on $60,000 is $1,800 a year, and because raises compound, that gap widens every year afterward.
• Your starting pay: the same percentage is worth far more on a higher base. A 5% raise is $2,500 on $50,000 but $5,000 on $100,000, which is why high earners often guard their percentage closely.
• The pay period you compare in: a "$200 raise" feels small per month and large per week. The period only changes the framing, not the annual total, so always convert to a yearly figure before judging an offer.
• Weekly hours (hourly roles): annual pay scales directly with hours worked, so a higher hourly rate on fewer hours can total less than a lower rate on full-time hours.
• Taxes and inflation: these do not change the gross number this tool shows, but they decide how much of the raise you actually keep and whether it improves your standard of living.

How the result is used in real life

The new-salary figure from this calculator is a starting point for several real decisions, not just a curiosity. When you are weighing a job offer, converting both the old and new pay to an annual number tells you the true size of the jump and reminds you to weigh benefits, retirement match, and commute cost alongside the headline. When you are budgeting, the per-month increase is the figure to plan around, ideally the after-tax version rather than the gross. And when you are planning for the long term, the compounding effect means even a one-time decision to push for an extra percentage point today quietly raises the base for every future raise, every bonus calculated as a percentage of salary, and often your retirement contributions too. Treating a raise as a recurring, compounding change rather than a one-off bump is what separates a small short-term win from a meaningful long-term gain.

How it compares to related calculators

This page answers "what is my new pay after a raise?" If your question is different, a sister tool fits better:

• To convert between an hourly wage and an annual salary, use the Hourly to Salary Calculator, or break a yearly figure down by period with the Salary Calculator.
• To work out overtime at time-and-a-half on your new base rate, use the Overtime Calculator.
• To see what your raise looks like after withholding, run the new salary through the Paycheck Calculator or estimate the bite with the Income Tax Calculator.
• To check whether your raise beats rising prices, compare it with the Inflation Calculator.
• For business pricing math, see the Margin, Markup and Profit Margin calculators.

Sources

• U.S. Bureau of Labor Statistics: Employment Cost Index news release (July 31, 2026: wages and salaries up 3.2% for civilian workers over the year to June 2026) and the ECI home page.
• U.S. Bureau of Labor Statistics: Consumer Price Index news release (September 11, 2026: all items up 3.4% over the year to August 2026).
• Internal Revenue Service: Revenue Procedure 2025-32 (2026 tax brackets and standard deduction used in the after-tax example) and Tax withholding.
• Social Security Administration: Contribution and benefit base (6.2% Social Security and 1.45% Medicare tax rates).