This pay raise calculator helps you see exactly how a percentage-based salary increase affects your earnings across different time periods. Whether you're evaluating a job offer, preparing for your annual review, or deciding whether a raise offer is competitive, this tool breaks down the real dollar impact on your hourly, weekly, monthly, and annual pay.

Understanding your raise in concrete terms empowers you to make informed career decisions and negotiate from a position of knowledge rather than guesswork. The calculator instantly shows you what a 3%, 5%, or 10% raise actually means for your paycheck—helping you evaluate whether it's time to accept an offer, ask for more, or explore other opportunities.

A pay raise is an increase in your compensation, typically expressed as a percentage of your current pay. While your employer might say "we're offering you a 4% raise," it's not always immediately clear what that means for your actual take-home earnings.

Here's why understanding the numbers matters: a 4% raise sounds modest, but on a $70,000 salary, that's $2,800 more per year—or about $233 extra each month. On the other hand, if you're earning $30,000, that same 4% is only $1,200 annually, or $100 per month. The percentage alone doesn't tell the whole story.

Percentage vs. Flat Amount Increases

Most raises are percentage-based rather than flat dollar amounts, and there's a good reason for this. Percentage raises scale with your current compensation and compound over time. If you receive a $2,000 flat raise this year and another $2,000 next year, you'll have gained $4,000 total. But if you receive a 3% raise two years in a row, the second year's 3% is calculated on your higher post-raise salary, meaning you actually earn more than if you'd received two equal flat amounts.

This compounding effect is why percentage raises—even modest ones—can significantly boost your earning potential over the course of your career.

The calculator uses a straightforward formula to convert your percentage raise into actual dollar amounts:

New Pay = Current Pay × (1 + Raise Percentage ÷ 100)

For example, if you currently earn $25 per hour and receive a 5% raise:

• New Pay = $25 × (1 + 5 ÷ 100)
• New Pay = $25 × 1.05
• New Pay = $26.25 per hour

The calculator then breaks this down across multiple time periods so you can see the impact in the format that's most relevant to you—whether you think in terms of hourly wages, weekly paychecks, monthly budgets, or annual earnings.

How to Use This Calculator

1. Enter Your Work Details: Start by entering how many hours you work per week. The standard full-time schedule is 40 hours, but if you work part-time or have a different arrangement, adjust accordingly.
2. Input Your Current Pay: Enter your current hourly rate. If you're salaried, you can convert your annual salary to an hourly rate by dividing by 2,080 (the approximate number of working hours in a year for full-time employment).
3. Enter Your Raise Percentage: Input the percentage increase you're receiving or evaluating. This might be 3%, 5%, 10%, or any other amount.
4. Review Your Results: The calculator instantly displays your current pay, the raise amount, and your new pay across hourly, weekly, monthly, and annual timeframes.

This breakdown helps you understand exactly what your raise means for your budget, savings goals, and overall financial situation.

Once you've calculated the dollar impact of your raise, the next question is: is this raise competitive? Here's what current market data tells us:

Standard Annual Raises (3-5%)

The typical annual cost-of-living adjustment in the U.S. ranges from 3-5%. These raises are designed to help your salary keep pace with inflation, maintaining your purchasing power without necessarily increasing your real wages. In 2024-2025, with inflation running around 3-4%, a 3% raise essentially maintains the status quo.

Above-Average Performance Raises (5-7%)

Raises in this range signal that your employer recognizes your contributions exceed expectations. You're not just keeping up with inflation—you're being rewarded for strong performance. This type of increase is common for employees who've taken on additional responsibilities or consistently delivered exceptional results.

Excellent/Promotion-Level Raises (7-10%+)

Raises of 7% or higher typically accompany promotions, significant expansions of responsibility, or recognition as a top performer. If you're receiving a 10% or greater raise without a title change, your employer is sending a strong signal about your value to the organization.

Understanding the Inflation Context

This is especially important right now. If inflation is 4% and you receive a 3% raise, you're actually losing purchasing power despite the salary increase. Your nominal income went up, but your real income (what your money can actually buy) decreased slightly.

When evaluating a raise offer, compare it to:

• Current inflation rates
• Industry averages for your role and experience level
• Your performance and increased responsibilities
• How long it's been since your last raise
• Market rates for similar positions

Let's look at how different raises play out with real numbers:

Example 1: Standard Cost-of-Living Raise (3%)

Sarah works 40 hours per week at $20 per hour:

• Current hourly rate: $20.00
• Raise percentage: 3%
• New hourly rate: $20.60
• Hourly increase: $0.60
• Weekly increase: $24.00
• Monthly increase: $104.00
• Annual increase: $1,248.00
• New annual salary: $42,848.00

What this means: Sarah's 3% raise is a typical cost-of-living adjustment. With inflation around 3-4%, this raise helps her maintain her purchasing power. While $104 extra per month isn't life-changing, it's enough to cover increased costs for groceries, utilities, or other expenses that have risen with inflation.

Example 2: Solid Performance Raise (5%)

Marcus earns $60,000 annually (approximately $28.85/hour at 40 hours/week):

• Current annual salary: $60,000
• Raise percentage: 5%
• New annual salary: $63,000
• Annual increase: $3,000
• Monthly increase: $250
• Hourly increase: $1.44

What this means: Marcus's 5% raise reflects strong performance. That extra $250 per month ($125 per paycheck if paid biweekly) is meaningful—enough to boost retirement contributions, start an emergency fund, or make an extra student loan payment. This raise exceeds inflation, meaning Marcus is gaining real purchasing power.

Example 3: Promotion-Level Raise (10%)

Jennifer received a promotion along with her raise. Her current salary is $75,000:

• Current annual salary: $75,000
• Raise percentage: 10%
• New annual salary: $82,500
• Annual increase: $7,500
• Monthly increase: $625
• Biweekly increase: $288

What this means: Jennifer's 10% raise—especially with a promotion—represents significant career advancement. An extra $625 per month can substantially impact her financial goals, whether that's saving for a house down payment, paying off debt faster, or building investments. This level of increase should come with expanded responsibilities and growth opportunities.

Example 4: Part-Time Hourly Worker (4%)

Alex works part-time, 25 hours per week at $16 per hour:

• Current hourly rate: $16.00
• Hours per week: 25
• Raise percentage: 4%
• New hourly rate: $16.64
• Hourly increase: $0.64
• Weekly increase: $16.00
• Monthly increase: $69.33
• Annual increase: $832.00

What this means: Even for part-time workers, percentage raises compound over time. While $69 per month might seem modest, it's nearly $850 extra per year—enough to cover textbooks for a semester, build a small emergency fund, or offset transportation costs.

Example 5: High Earner Scenario (3%)

David earns $150,000 annually:

• Current annual salary: $150,000
• Raise percentage: 3%
• New annual salary: $154,500
• Annual increase: $4,500
• Monthly increase: $375

What this means: This illustrates why percentages matter more than flat amounts. David's 3% "cost-of-living" raise is $4,500—more than some workers' entire raises at different salary levels. The same percentage has vastly different impacts depending on your base compensation.

Using Calculator Results in Negotiations

When preparing for a salary negotiation, this calculator gives you concrete numbers to discuss. Instead of saying "I'd like a raise," you can say "Based on my expanded responsibilities and market research, I'm requesting a 7% increase, which would bring my salary to $64,200." Specific numbers demonstrate you've done your homework.

Here's how to leverage your calculation:

• Research market rates for your role and experience level
• Document your achievements and increased responsibilities
• Calculate what percentage raise would bring you to market rate
• Present your case with specific figures, not vague requests

When a Raise Is Enough vs. When to Consider Other Options

Sometimes the math reveals that it's time to explore new opportunities. Consider looking elsewhere if:

• Your raise consistently falls below inflation year after year
• You're receiving 0-2% raises despite strong performance
• Market research shows you're 10-15% below market rate for your role
• Your employer can't or won't bring you to competitive compensation

Keep in mind that switching jobs typically offers larger salary increases than staying put. The average raise for changing employers is 10-20%, compared to the 3-5% average for staying with your current company.

The Tax Reality

Remember that your raise is taxed as ordinary income. If you're in the 22% federal tax bracket and your state has a 5% income tax, roughly 27% of your raise goes to taxes. A $5,000 gross raise means about $3,650 in actual take-home pay, or roughly $140 per paycheck if you're paid biweekly.

This doesn't mean raises aren't valuable—it just means you should set realistic expectations about the impact on your actual paycheck.

The Compound Effect Over Time

Here's the good news about percentage-based raises: they compound over time. If you start at $50,000 and receive a 3% raise each year for 10 years, you won't earn $65,000 ($50,000 + 10 × $1,500). You'll actually earn about $67,196 because each year's 3% is calculated on a higher base salary.

Over a 30-year career, the difference between consistent 3% raises and 4% raises is substantial—potentially hundreds of thousands of dollars. This is why negotiating even slightly higher percentage increases early in your career can have enormous long-term impact.

What is a good pay raise percentage?

A "good" raise depends on several factors, but here are general benchmarks:

• 3%: Standard cost-of-living adjustment, keeps pace with inflation
• 4-5%: Above-average performance recognition
• 6-7%: Excellent performance or expanded responsibilities
• 8-10%: Promotion-level increase
• 10%+: Major promotion or exceptional circumstances

For context, the average U.S. raise in 2024 was projected at around 3.9% according to compensation surveys. Anything above 5% is better than average.

How much is a 3% raise per hour?

It depends on your starting hourly rate. Here are some examples:

• $15/hour + 3% = $15.45/hour ($0.45 increase)
• $20/hour + 3% = $20.60/hour ($0.60 increase)
• $25/hour + 3% = $25.75/hour ($0.75 increase)
• $30/hour + 3% = $30.90/hour ($0.90 increase)

To calculate it yourself: multiply your hourly rate by 0.03. For $22/hour, that's $22 × 0.03 = $0.66 increase.

Is a 3% raise good?

It depends on your situation and the current economic climate. In 2024-2025, with inflation around 3-4%, a 3% raise essentially maintains your purchasing power without increasing your real wages.

A 3% raise is appropriate if:

• It's a standard annual cost-of-living adjustment
• You're early in your career or relatively new to the company
• Your employer is facing budget constraints
• It's in addition to bonuses or other compensation increases

Consider pushing for more if:

• You've taken on significantly more responsibility
• Your performance has been exceptional
• Market rates for your role have increased above inflation
• You haven't received a raise in over a year

How do you calculate a pay raise percentage?

Use this formula:

Raise Amount = Current Pay × (Raise Percentage ÷ 100)

Then add the raise amount to your current pay:

New Pay = Current Pay + Raise Amount

Example: You earn $50,000 and receive a 5% raise.

• Raise Amount = $50,000 × (5 ÷ 100) = $50,000 × 0.05 = $2,500
• New Pay = $50,000 + $2,500 = $52,500

If you need to calculate what percentage raise you received when you know the dollar amounts:

Raise Percentage = ((New Pay - Current Pay) ÷ Current Pay) × 100

How often should I expect a pay raise?

Most companies conduct annual performance reviews and provide raises once per year, typically:

• At the start of the fiscal year (often January or the company's fiscal year start)
• On your work anniversary
• Following annual performance review cycles

Some companies offer raises more or less frequently:

• More frequent: Startups, high-growth companies, or roles with rapid skill development might offer raises every 6-12 months
• Less frequent: Government positions, unionized roles, or companies with budget constraints might have longer cycles or fixed raise schedules

If you haven't received a raise in 18-24 months despite good performance, it's reasonable to schedule a conversation with your manager about compensation.

What's the difference between a raise and a promotion?

A raise is an increase in compensation for your current role, typically 3-5% annually for good performance. A promotion includes a title change, expanded responsibilities, and usually comes with a larger compensation increase of 8-15% or more.

Typical scenarios:

• Annual merit raise: 3-5%, same role and responsibilities
• Performance-based raise: 5-7%, recognition of exceptional work
• Promotion: 8-15%+, new title and expanded scope
• Job change: 10-20%+, moving to a new company

How much does a pay raise affect my take-home pay?

Your raise is taxed as ordinary income, so the take-home amount is less than the gross increase. The exact impact depends on your tax bracket (federal, state, and local taxes plus FICA).

Quick estimate:

• Lower tax bracket (~12% federal + 5% state): Keep about 83% of your raise
• Middle tax bracket (~22% federal + 5% state): Keep about 73% of your raise
• Higher tax bracket (~24-32% federal + 5% state): Keep about 63-71% of your raise

Example: A $5,000 gross raise in the 22% federal bracket with 5% state tax means roughly $3,650 in additional take-home pay annually, or about $140 more per paycheck if paid biweekly.

How do I negotiate a higher pay raise?

Effective negotiation requires preparation and timing:

1. Do your research: Use salary comparison tools to understand market rates for your role, experience, and location.
2. Document your value: Prepare specific examples of achievements, projects completed, revenue generated, or problems solved.
3. Time it right: The best time to negotiate is during performance reviews, after major accomplishments, or when taking on new responsibilities.
4. Use specific numbers: Instead of "I'd like a bigger raise," say "Based on my research and contributions, I'm requesting a 7% increase to $64,200."
5. Be ready to explain: Connect your request to market data, your performance, and the value you bring.
6. Consider total compensation: If base salary is constrained, negotiate for bonuses, equity, additional vacation, professional development, or other benefits.

Should I accept a 2% raise or look for a new job?

A 2% raise in 2024-2025 is below inflation, meaning you're effectively taking a pay cut in real terms. However, whether to stay or go depends on more than just the raise percentage:

Consider staying if:

• Your total compensation (benefits, bonuses, equity) is still competitive
• You're gaining valuable experience or skills
• You have exceptional work-life balance or flexibility
• A larger raise or promotion is planned for the near future
• The job market in your field is difficult

Consider looking elsewhere if:

• You're consistently below market rate (10-15%+ underpaid)
• You've received minimal raises for multiple years
• There's no clear path to advancement
• Your skills are in high demand in the market

Remember, the average salary increase from changing jobs is 10-20%—significantly more than annual raises. If you're consistently receiving below-inflation raises, exploring the market might be your best financial move.

How does a pay raise compound over time?

Percentage raises build on your previous salary, creating compound growth. Here's an example starting at $50,000 with annual 3% raises:

• Year 1: $50,000
• Year 2: $51,500 (3% of $50,000)
• Year 3: $53,045 (3% of $51,500, not $50,000)
• Year 5: $56,381
• Year 10: $67,196
• Year 20: $90,306

If raises were simple addition instead of compounding, you'd only be at $80,000 after 20 years ($50,000 + 20 × $1,500). The compounding effect adds an extra $10,306.

This is why negotiating higher percentage raises early in your career has such significant long-term impact—you're not just earning more now, you're increasing the base that all future raises are calculated from.

Professional Context Matters

This calculator provides the mathematical impact of a pay raise, but compensation decisions involve factors beyond simple percentages. Consider your total compensation package, including:

• Health insurance and benefits
• Retirement contributions (401k matching, pension)
• Bonuses and profit sharing
• Stock options or equity
• Paid time off
• Professional development opportunities
• Work-life balance and flexibility

Sometimes a slightly smaller raise at a company with excellent benefits and work culture is more valuable than a larger raise at a company with poor benefits or unsustainable work demands.

Regional and Industry Variations

Pay raise benchmarks vary significantly by industry, location, and economic conditions. Tech companies in high-cost-of-living areas typically offer larger raises than non-profits in rural areas. Government positions often have predetermined raise schedules that differ from private sector norms.

Research compensation trends specific to your:

• Industry and role
• Geographic location
• Company size and financial health
• Years of experience and education level

This Calculator Is Not Financial Advice

While this tool helps you understand the mathematical impact of pay raises, it doesn't account for your individual financial situation, career goals, or personal circumstances. For significant career decisions, consider consulting with a career counselor or financial advisor who can provide personalized guidance.

Gross vs. Net Pay

All calculations show gross (pre-tax) amounts. Your actual take-home pay will be lower after federal, state, and local taxes, plus deductions for Social Security, Medicare, health insurance, retirement contributions, and other withholdings.