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Pay Raise Calculator

See your new pay after a raise, by percent or by dollar amount, as an hourly, weekly, monthly and yearly figure, and compare it with inflation.

Results

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New pay by period

PeriodBeforeAfterIncrease
Amounts are before tax. Weekly and hourly figures use 52 weeks a year and the hours you enter. A raise also raises taxes and some deductions, so take-home pay grows by less. Use our Paycheck Calculator to see the after-tax change.

Quick Answer

New pay = old pay × (1 + raise %). A 5% raise on a $60,000 salary is $3,000 a year, bringing pay to $63,000.00. That is about $250.00 more a month before tax. With 3% inflation, the real raise is about 1.94%.

Last updated: 2 November 2026 ·How we calculate this: the percent change formula

Table of Contents

How This Pay Raise Calculator Works

Enter your current pay and whether it is yearly, monthly or hourly. Then enter the raise as a percent or a dollar amount. The calculator shows your new pay for each period, the raise in dollars and percent, and, if you add an inflation rate, the real raise after rising prices.

Quick explanation: a raise is only a real gain if it beats inflation.

  • Percent raise: new pay ÷ old pay − 1.
  • Hourly to yearly: hourly pay × hours per week × 52.
  • Real raise: adjusts for inflation.

How to Use the Pay Raise Calculator

  1. Enter your current pay and choose yearly, monthly or hourly.
  2. Enter the hours you work each week.
  3. Choose whether the raise is a percent or a dollar amount, and enter it.
  4. Optionally, enter the inflation rate.
  5. Press Calculate and read your new pay for each period.

Core Formulas

  • New pay (percent): old pay × (1 + raise ÷ 100)
  • New pay (dollars): old pay + raise
  • Raise percent: (new pay ÷ old pay − 1) × 100
  • Real raise: (1 + raise) ÷ (1 + inflation) − 1

Key Terms

  • Gross pay: pay before taxes and deductions.
  • Net pay: take-home pay after taxes and deductions.
  • Cost-of-living adjustment: a raise to keep up with inflation.
  • Real raise: a raise after adjusting for inflation.
  • Merit raise: a raise based on performance.

Worked Example

You earn $22 an hour for 40 hours a week and get a $1.50 an hour raise.

  • Old yearly pay = $22 × 40 × 52 = $45,760.00
  • New yearly pay = $23.50 × 40 × 52 = $48,880.00
  • Raise = $3,120.00 a year, or 6.82%

Real-Life Examples

  • Annual review: a 3% raise on $75,000 adds $2,250.00 a year.
  • Hourly job: $1.50 more an hour at 40 hours is $3,120.00 a year.
  • Comparing offers: a new job at $68,000 from $60,000 is a 13.3% raise.
  • Inflation check: a 2% raise with 3% inflation is a real pay cut of about 0.97%.

Raise vs Bonus

  • Raise: increases your base pay for every future year, and often future raises too.
  • Bonus: a one-time payment that does not change base pay.
  • Long-term value: a raise compounds over time, so it is often worth more than an equal bonus.

What a Raise Adds Each Year

Salary3% raise5% raise10% raise
$40,000$1,200.00$2,000.00$4,000.00
$50,000$1,500.00$2,500.00$5,000.00
$60,000$1,800.00$3,000.00$6,000.00
$75,000$2,250.00$3,750.00$7,500.00
$100,000$3,000.00$5,000.00$10,000.00
$125,000$3,750.00$6,250.00$12,500.00

Tips for Asking for a Raise

  • Know the market: compare your pay with similar jobs in your area.
  • Show results: list goals you met and value you added.
  • Pick your timing: reviews and budget planning are good moments.
  • Think beyond pay: bonuses, time off and training also count.

Common Mistakes to Avoid

  • Forgetting taxes. Take-home pay rises less than gross pay.
  • Ignoring inflation. A raise below inflation is a cut in buying power.
  • Mixing pay periods. A dollar raise must match your pay period.
  • Using the wrong hours. Part-time hours change the yearly figure.
  • Comparing gross with net. Compare like with like.

Frequently Asked Questions

Divide new pay by old pay, subtract 1 and multiply by 100.

Multiply your salary by 1 plus the raise as a decimal. A 5% raise on $60,000 gives $63,000.

It depends on your field, results and inflation. A raise above inflation increases your buying power.

At 40 hours a week, about $2,080 a year before tax.

3% of your pay. On $50,000, that is $1,500 a year, or $125 a month.

Only the extra income may be taxed at a higher rate. Your take-home pay still rises.

Your raise after inflation. Use (1 + raise) ÷ (1 + inflation) − 1.

Multiply the hourly raise by hours per week and by 52.

Many employers review pay once a year, but it varies.

Usually, because a raise lifts your base pay for future years.

Yes. Enter a negative raise, such as −5.

Use our Paycheck Calculator with your new salary.

Divide the yearly increase by your number of paychecks. A $3,000 raise is about $115 more per paycheck if you are paid every two weeks, before tax. The table above shows each pay period.

Research pay for similar jobs, then use this calculator to turn your target into a percent and a dollar figure. Asking with clear numbers and examples of your results makes the request easier to approve.

Yes. Each new raise is a percent of your higher pay, so steady raises grow your pay faster over the years. Three 4% raises in a row add up to about 12.5%, not 12%.

References & Sources

SourceUsed ForLink
U.S. Bureau of Labor Statistics, Consumer Price Index Inflation data to compare with your raise. https://www.bls.gov/cpi/
Wikipedia, Real wages How inflation affects the value of pay. https://en.wikipedia.org/wiki/Real_wages