Pay Raise Calculator
Calculate the exact impact of any pay raise on your annual, monthly, and hourly pay. Works for percentage raises and flat-dollar increases. Free tool.
Got a raise — or negotiating one? Our Pay Raise Calculator shows you exactly how much more you will earn annually, monthly, and per hour after any percentage or flat-dollar increase. Enter your current salary and the raise amount, and see the difference instantly. Results include pre-tax figures.
Formula
Percentage raise:
New Salary = Current Salary × (1 + Raise % / 100) Raise Amount = Current Salary × (Raise % / 100)
Flat-dollar raise:
New Salary = Current Salary + Raise Amount
Worked Examples
Example 1 — 5% Raise on $55,000:
- Raise Amount = $55,000 × 0.05 = $2,750
- New Annual Salary = $57,750
- Monthly increase = $229.17/month
Example 2 — 10% Raise on $38,000:
- Raise Amount = $38,000 × 0.10 = $3,800
- New Annual Salary = $41,800
- Monthly increase = $316.67/month
Example 3 — Flat $5,000 Raise on $72,000:
- New Annual Salary = $77,000
- Effective raise % = 6.94%
- Monthly increase = $416.67/month
FAQs
How do I calculate the percentage of a pay raise?
Raise % = ((New Salary − Old Salary) / Old Salary) × 100. If your salary goes from $50,000 to $53,500: (($53,500 − $50,000) / $50,000) × 100 = 7%.
What is a typical annual pay raise percentage?
In the US, average annual pay raises run 3–5% in normal economic conditions. Cost-of-living adjustments (COLAs) track inflation and may be lower in low-inflation years. Merit-based raises for high performers often run 6–10%. Promotions with role changes often carry 10–20%+ increases.
Does a pay raise affect my tax bracket?
The US uses a marginal tax system — only the income that crosses into a higher bracket is taxed at the new rate. A raise rarely dramatically increases your overall tax burden. However, a raise can affect eligibility for certain income-tested benefits or deductions.
How do I negotiate a higher pay raise?
Come prepared with documented contributions over the past year, industry salary benchmarks (LinkedIn Salary, Glassdoor, BLS data), and a specific number — not a range. Research shows employees who name a specific raise percentage are more likely to receive closer to what they ask for. Timing matters: negotiate after a visible win, not during a company downturn.
Should I negotiate salary annually?
Yes. Annual reviews are the standard opportunity, but you do not have to wait. Promotions, completing a major project, taking on additional responsibilities, or a significant market salary shift are all valid triggers for a mid-year conversation.