Pay Raise Calculator

Enter your current salary and raise percentage to see your new pay across every pay period.

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Average raises by industry

Technology: 4-6% average merit increase, 10-20% for promotions or job changes

Healthcare: 3-5% average, with nursing and specialized roles often higher

Finance & Banking: 3-5% base raise, significant bonus potential (10-50%+)

Education: 2-3% annual step increases, often tied to seniority and credentials

Retail & Hospitality: 2-3% typical, with higher raises for management roles

Government: 2-4% COLA adjustments, plus step increases based on time in grade

Tips for maximizing your raise

Track your wins: Keep a running document of accomplishments, metrics, and positive feedback throughout the year.

Know your market value: Research comparable salaries on Glassdoor, LinkedIn Salary, and Levels.fyi.

Time it right: Ask after a big win, during annual reviews, or when the company is doing well financially.

Consider total compensation: If base salary is limited, negotiate for bonuses, equity, extra PTO, or remote flexibility.

Get it in writing: Always confirm your new salary and effective date in writing from HR or your manager.

Frequently asked questions

What is the average pay raise percentage?

The average annual pay raise in the US is typically 3-5% for merit increases. Promotions may come with 10-20% raises. Cost-of-living adjustments (COLA) are often 2-3%, roughly matching inflation.

How do I negotiate a higher raise?

Research market rates for your role using sites like Glassdoor or Levels.fyi. Document your accomplishments, quantify your impact, and present a clear case. Time your request after a successful project or during annual reviews.

Is a 5% raise good?

A 5% raise is above the national average for merit increases (typically 3-4%). Whether it's good depends on inflation, your industry, and local cost of living. If inflation is 3%, a 5% raise means a 2% real increase in purchasing power.

How do I calculate my raise per paycheck?

Divide your annual raise amount by the number of pay periods. For biweekly pay (26 periods), divide by 26. For semi-monthly (24 periods), divide by 24. For monthly, divide by 12. Remember that taxes will reduce the actual take-home difference.

How to Calculate a Pay Raise

A pay raise is calculated by multiplying your current salary by the raise percentage as a decimal. For example, a 4% raise on a $65,000 salary: $65,000 × 0.04 = $2,600 raise, making your new salary $67,600. That's an extra $216.67 per month or $100 per biweekly paycheck before taxes.

To convert a raise to hourly impact, divide the annual raise by 2,080 (standard full-time hours per year). A $2,600 annual raise equals $1.25 more per hour. For hourly workers, multiply your current rate by the raise percentage: $25/hr × 1.04 = $26/hr.

Average Raises by Year and Industry

The average annual salary increase in the US is typically 3-4% for standard performance. High performers may receive 5-8%, while promotions often come with 10-20% increases. However, these figures vary significantly by industry, location, and economic conditions.

Technology and finance sectors tend to offer higher raises (4-6%) due to competition for talent. Healthcare and education typically fall in the 2-4% range. During periods of high inflation, even a 3-4% raise may represent a decrease in purchasing power if inflation exceeds the raise percentage.

Raise vs. Inflation: Are You Actually Earning More?

A raise only increases your real purchasing power if it exceeds inflation. If you receive a 3% raise but inflation is 4%, your real income has actually decreased by 1%. This means you can buy less with your new salary than you could with your old salary the previous year.

To calculate your real raise: Real Raise = Nominal Raise − Inflation Rate. A 5% raise with 3% inflation gives a 2% real increase. When negotiating salary, always consider the inflation rate — asking for an "inflation adjustment" plus a merit increase is a strong negotiating approach.