About the Pay Raise Calculator
This pay raise calculator answers the three questions people ask when a raise is on the table: what will my new salary be, what percentage increase is this, and how much more will I actually take home? Enter a raise as a percentage, as a dollar amount, or type in the new salary to find the percent increase.
Beyond the headline number, it shows the raise after your marginal tax rate, the extra money per month and per biweekly paycheck, the new hourly equivalent, and the “real” raise after inflation. That last figure matters: a 3% raise during 3% inflation keeps your buying power flat.
Use it before a performance review or salary negotiation, to evaluate a promotion or job offer, or to check whether your pay is keeping up with prices. The projection chart shows how the same annual raise compounds over ten years compared with inflation alone.
With the default inputs, the new salary is $78,750.00. Change any value above to recalculate instantly.
How to use the pay raise calculator
- 1Enter your current annual salary.
- 2Choose how you know the raise: as a percent, a dollar amount, or the new salary.
- 3Enter your marginal tax rate to see the after-tax value.
- 4Enter the current inflation rate to see your real raise.
- 5Compare the ten-year projection against inflation.
Formula and method
A percentage raise multiplies your current salary by (1 + r). When you know both salaries, the raise percentage is the difference divided by the old salary. The after-tax raise multiplies the gross raise by (1 − marginal tax rate), because extra income is taxed at your top rate, not your average rate.
The real raise adjusts for inflation: dividing (1 + raise) by (1 + inflation) shows the change in purchasing power. Extra take-home pay per month is the after-tax raise ÷ 12, and per biweekly paycheck ÷ 26. The hourly equivalent assumes 2,080 paid hours per year.
- S
- Current annual salary
- r
- Raise as a decimal (5% = 0.05)
- i
- Inflation rate as a decimal
Worked examples
5% raise on $75,000
A 5% raise adds $3,750 for a new salary of $78,750. At a 30% marginal rate you keep $2,625 — about $219 a month or $101 per biweekly check. With 3% inflation the real raise is about 1.94%.
$3,000 raise on $60,000
A $3,000 raise on $60,000 is exactly 5%. At a 22% marginal rate that is $2,340 a year or $195 a month more take-home, and 2.44% more buying power after 2.5% inflation.
Job offer: $70,000 to $82,000
Moving from $70,000 to $82,000 is a $12,000 (17.14%) increase. After a 30% marginal tax rate you keep $8,400 a year, and the new hourly equivalent is $39.42.
Frequently asked questions
How do I calculate a raise percentage?+
Subtract your old salary from the new one and divide by the old salary, then multiply by 100. Going from $50,000 to $53,000 is ($3,000 ÷ $50,000) × 100 = a 6% raise.
What is a good raise percentage?+
A typical annual merit raise is around 3–5%, while promotions and job changes more often bring 10–20%. A raise below the inflation rate means your purchasing power is falling.
How much of my raise will I actually keep?+
Raises are taxed at your marginal rate — your top federal bracket plus state tax plus 7.65% FICA. Someone in the 22% bracket with 5% state tax keeps roughly 65 cents of each extra dollar.
Can a raise push me into a higher tax bracket and lower my pay?+
No. In a progressive system only the income above a bracket threshold is taxed at the higher rate, so a raise always increases take-home pay (benefit phase-outs aside).
How much is a 3% raise on $50,000?+
A 3% raise on $50,000 is $1,500, for a new salary of $51,500. That is $125 a month before tax.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.