Pay Raise Calculator
Free online pay raise calculator. Enter your current salary and raise percentage to see your new salary, increase amount, and updated hourly, weekly, biweekly, and monthly pay. Works for annual salary and hourly wage increases.
Pay Raise Calculator
Enter your current salary and raise percentage to see your new salary, increase amount, and pay breakdown by period.
Average Raises by Industry
Technology: 4–6% average annual raise, driven by strong demand for engineering and product talent. High performers and job-switchers often see 10–20%+ increases.
Healthcare: 2–4% for administrative and support roles; 4–7% for clinical roles such as nurses and physicians due to ongoing staffing shortages.
Finance: 3–6% for most roles, with bonuses often representing a larger share of total compensation than the base salary increase.
Education: 2–3% for most public-sector teachers and staff, often tied to step schedules and collective bargaining agreements rather than individual merit.
Retail: 2–3% on average, with hourly workers frequently seeing raises tied to minimum-wage legislation rather than employer discretion.
Government: 1–3% annual raises tied to cost-of-living adjustments (COLA) or legislated pay scales; merit increases are less common than in the private sector.
Tips for Negotiating a Raise
Time it right: Request a raise after a visible win — a shipped project, a glowing review, or a period of strong company performance. Avoid asking during budget freezes or layoff rounds.
Know your market rate: Check salary benchmarks on LinkedIn, Glassdoor, or Levels.fyi before the conversation. Coming in with data turns a personal request into a business discussion.
Quantify your impact: Translate your work into dollars, percentages, or time saved. 'I reduced churn by 8%' is far more persuasive than 'I worked really hard this year.'
Account for inflation: A raise below the current inflation rate is a real pay cut. Ask for an inflation adjustment first, then negotiate your merit increase on top of that baseline.
Get it in writing: Verbal agreements fade. Confirm any agreed raise in an email or official letter before your next pay period begins, including the effective date and new salary figure.
Frequently Asked Questions
How do I calculate a percentage pay raise?
New salary = Current salary × (1 + raise% ÷ 100). For a 7% raise on a $55,000 salary: new salary = $55,000 × 1.07 = $58,850. The raise amount is $3,850 per year, or about $321 per month before taxes. To find the percentage of a known raise: raise% = (New salary − Old salary) ÷ Old salary × 100.
What is a good annual raise?
A typical cost-of-living raise in the US runs 2–4%, matching or slightly exceeding inflation. A merit raise that rewards performance is typically 4–6%. A promotion or competitive retention offer might be 10–20% or more. In recent years of elevated inflation (2021–2023), raises below 5–6% represented a real pay cut in purchasing power. Industry, company performance, and job-market conditions all affect what counts as a good raise.
How does a pay raise affect take-home pay?
A raise increases gross income, but the tax impact depends on whether it pushes income into a higher marginal tax bracket. The US has a progressive tax system, so only the income above each threshold is taxed at the higher rate — not your entire income. A $5,000 raise at the 22% marginal rate means about $1,100 more in federal taxes, leaving roughly $3,900 in extra take-home pay annually before state taxes and FICA contributions.
What is a cost-of-living adjustment (COLA)?
A cost-of-living adjustment (COLA) is a pay increase tied to inflation rather than individual performance. It is intended to maintain your real purchasing power as prices rise. The Social Security Administration issues annual COLAs based on the Consumer Price Index — in 2024 it was 3.2%, and in 2023 it was 8.7%. Many private employers offer COLAs during high-inflation periods to retain employees, but they are not universally required or standardized.
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How to Calculate a Pay Raise
A pay raise percentage is calculated by dividing the increase amount by your original salary. The formula is: Raise% = ((New Salary - Old Salary) / Old Salary) × 100. If your salary goes from $50,000 to $53,000, your raise is (($53,000 - $50,000) / $50,000) × 100 = 6%.
To find your new salary given a raise percentage: New Salary = Old Salary × (1 + Raise%/100). A 5% raise on a $60,000 salary gives you $60,000 × 1.05 = $63,000. That's $3,000 more per year, or $250 more per month before taxes.
Understanding the difference between a raise and a cost-of-living adjustment (COLA) matters. A COLA matches inflation, meaning your purchasing power stays the same. A true raise exceeds inflation, actually increasing what you can buy. If inflation is 3% and you get a 3% raise, you haven't actually gained any purchasing power.
What's a Good Raise?
The average annual raise in the US is typically 3-5%, with top performers receiving 5-10%. However, "good" depends on context: industry, company performance, your performance, inflation, and market conditions all play roles.
Promotions typically come with larger increases of 10-20% since they involve new responsibilities. Lateral moves to new companies often bring 10-30% increases, which is why job hopping (thoughtfully) can be an effective compensation strategy.
When evaluating a raise offer, consider the full picture. Benefits changes, bonuses, equity, retirement contributions, and other perks all affect total compensation. A smaller raise might be offset by better benefits. Also consider non-monetary factors like work-life balance, career growth opportunities, and job satisfaction.
Negotiating a Higher Salary
Salary negotiation is a skill that can significantly impact lifetime earnings. Research shows that failing to negotiate a starting salary can cost hundreds of thousands of dollars over a career due to compounding raises based on that initial number.
Prepare for negotiation by researching market rates using sites like Glassdoor, PayScale, or industry salary surveys. Document your accomplishments with specific metrics — revenue generated, costs saved, projects completed, or efficiency improvements. Frame requests around the value you provide, not personal needs.
Timing matters. Request raises during performance reviews, after completing major projects, or when taking on new responsibilities. If the budget is truly constrained, negotiate for non-salary benefits: extra vacation, flexible work arrangements, professional development funding, or a performance bonus structure tied to specific goals.
Annual Raise Impact Over Time
| Starting Salary | 3% Annual | 5% Annual | 7% Annual |
|---|---|---|---|
| $50,000 (Year 1) | $50,000 | $50,000 | $50,000 |
| After 5 years | $57,964 | $63,814 | $70,128 |
| After 10 years | $67,196 | $81,445 | $98,358 |
| After 20 years | $90,306 | $132,665 | $193,484 |
Raise Scenarios Comparison
| Current Salary | Raise Amount | New Salary | Monthly Increase |
|---|---|---|---|
| $40,000 | 3% ($1,200) | $41,200 | $100 |
| $60,000 | 5% ($3,000) | $63,000 | $250 |
| $80,000 | 7% ($5,600) | $85,600 | $467 |
| $100,000 | 10% ($10,000) | $110,000 | $833 |
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