Pay Raise Calculator
See your new salary, per-paycheck increase, take-home pay and real raise after inflation.
How to use the pay raise calculator
- Enter your current pay before tax. Select hourly, weekly, bi-weekly, semi-monthly, monthly or annual pay. For an hourly wage, enter your usual paid hours per week.
- Choose the type of raise. Percentage calculates a percentage-based raise such as 3.5%; Flat amount adds a fixed dollar amount in your selected pay period; New pay finds the raise percentage from your old and new pay.
- Compare your new salary and paycheck. The results show the increase across pay periods. Open the optional tax and inflation panels for an estimate of your take-home increase and change in purchasing power.
For a $2,000 annual raise, choose annual pay before entering the flat amount. For $2 more per hour, choose hourly pay. A $2 hourly increase and a $2 annual increase are very different calculations.
Calculation inputs stay in your browser. Copy result produces a text summary; Share link creates a link containing your inputs. Anyone you give that link to can see the figures. Read the calculation methodology and limitations.
Pay raise formula: calculate your salary increase
A pay raise is an increase in your base salary or hourly wage. The multiplier for a 3% increase is 1.03: multiply the original pay by that figure to obtain the new pay. It may be quoted as a percentage, a fixed amount, or a new rate of pay. Use matching units for both the old and new figures.
Raise amount = current pay × raise percentage ÷ 100
New pay = current pay + raise amount
Raise percentage = (new pay − current pay) ÷ current pay × 100
For example, a 3% salary increase on $60,000 is $60,000 × 0.03 = $1,800 per year. Your new annual salary is $61,800. That equals $150 more per month or $69.23 more per bi-weekly paycheck before tax, assuming the new rate applies for a full year.
If your salary changes from $60,000 to $63,000, the percentage increase is $3,000 ÷ $60,000 × 100 = 5%. Select New pay to work backwards from a job offer or salary review. A lower new salary produces a negative percentage, which represents a pay cut.
Salary increase percentage: compare common raises
These examples use a $60,000 annual salary, 26 bi-weekly paychecks and a full year at the new rate. Amounts are gross, before taxes and benefit deductions.
| Raise | New salary | Extra per year | Extra per paycheck |
|---|---|---|---|
| 2% | $61,200 | $1,200 | $46.15 |
| 3% | $61,800 | $1,800 | $69.23 |
| 3.5% | $62,100 | $2,100 | $80.77 |
| 5% | $63,000 | $3,000 | $115.38 |
| 10% | $66,000 | $6,000 | $230.77 |
Hourly pay raises and annual salary
To calculate your pay raise from an hourly rate, multiply the increase by hours worked per week and paid weeks per year. A $1 an hour raise at 40 hours a week for 52 weeks adds $2,080 a year. At 30 hours a week, it adds $1,560. The hourly raise calculator makes these conversions for your schedule.
The annual estimates assume 52 paid weeks and unchanged working hours. Unpaid leave, variable shifts, overtime premiums and a change in hours can alter the total. Daily figures use five working days per week. Compare both pay rate and hours when evaluating an offer.
How much of a pay raise do you keep after taxes?
Gross pay is the amount before deductions. Take-home pay is the amount remaining after taxes and payroll deductions. The calculator estimates the extra federal income tax by comparing tax before and after the raise, using 2026 brackets and the standard deduction. It also estimates employee Social Security and Medicare taxes.
For a single filer earning $60,000 with no other income, no state tax and no pre-tax contributions, a $1,800 annual raise adds approximately $216 in federal income tax and $137.70 in Social Security and Medicare tax. The estimated take-home increase is $1,446.30 per year, or $55.63 per bi-weekly paycheck.
A 401(k) contribution reduces the cash increase as well as federal taxable income. For the same example with a 5% traditional 401(k) contribution, $90 of the raise goes to retirement savings, and the estimated cash increase becomes $1,367.10 a year. Roth contributions and HSA payroll deductions have different treatment and are not modeled by that input.
Moving into a higher federal bracket does not apply that rate to all your income. However, benefit eligibility, tax credits and payroll elections can change the overall outcome. State estimates are simplified flat-rate approximations, and unsupported states are excluded. Use the raise after taxes calculator for the breakdown and the IRS Tax Withholding Estimator to review withholding.
Salary inflation calculator: compare real purchasing power
Your nominal raise is the percentage on your pay letter. Your real raise measures the change in purchasing power. Calculate it as ((1 + raise ÷ 100) ÷ (1 + inflation ÷ 100) − 1) × 100.
With a 3% raise and 3.4% inflation, the real change is about −0.39%. A 5% raise against the same inflation rate produces a real gain of about 1.55%. The default 3.4% is the BLS CPI-U change for the 12 months ending August 2026, checked October 5, 2026. It is a historical national measure, not a forecast or your household's exact cost increase. Cost-of-living adjustments may use another index or measurement period; check the employer's policy before deciding whether the new pay rate keeps pace with inflation. You can enter a different rate in the cost of living raise calculator.
Check the effective date and pay schedule
A $3,000 annual raise starting July 1 does not normally add $3,000 to that calendar year's earnings. With six equal months remaining, it adds about $1,500 that year. Your new annual salary describes your ongoing rate of pay; the effective date determines how much you actually receive this year. See the mid-year pay raise worksheet.
Bi-weekly means every two weeks, usually 26 checks a year. Semi-monthly means twice a month, usually 24 checks. A $2,400 annual increase is $92.31 per bi-weekly check or $100 per semi-monthly check. Some payroll calendars have 27 bi-weekly pay dates; use your employer's actual schedule. Our pay schedule comparison explains the difference.
Use the salary increase calculator for a job offer
When considering a new job offer, compare potential pay on the same basis as your current salary. First find the total annual increase, then estimate deductions and new costs. A flat rate increase can be worth more or less than a percentage offer depending on the starting salary.
For example, a $5,000 raise offer with $1,800 in extra annual commuting costs leaves a $3,200 difference before any additional taxes. The actual take-home increase will be smaller if extra tax is due. This comparison helps you assess the impact of a salary increase on monthly income without treating gross pay as spendable cash.
Is your raise offer fair compensation?
For salary negotiation and performance reviews, research industry benchmarks for your role and location. Check changes in responsibilities, benefits and the effective date. Economic conditions can affect employer budgets, but they do not determine the right pay for an individual role. An employer's salary budget is an aggregate planning figure, not the raise every worker receives. The 2026 salary budget guide separates merit increases from total budgets, while is a 3% raise good? shows how to make a fair comparison.
A recurring increase also differs from a one-time bonus: it raises the base for later percentage increases. Two consecutive 5% raises make a combined 10.25% increase, because the second applies to the higher salary. Use salary increase over time to compare that effect, and the raise request guide to prepare your evidence.
Pay raise calculator FAQs: frequently asked questions
How do I calculate a 5% pay raise?
Multiply your current pay by 0.05 for the increase and by 1.05 for your new pay. A $50,000 salary becomes $52,500, an increase of $2,500 per year before deductions.
What does a $2,000 raise add to my paycheck?
Before tax, a $2,000 annual raise adds $76.92 to each of 26 bi-weekly checks or $83.33 to each of 24 semi-monthly checks. The tax panel estimates the cash increase using your selected assumptions.
Can I calculate the percentage from my new salary?
Yes. Choose New pay and enter both amounts in the same pay period. Going from $25 to $27 an hour is ($27 − $25) ÷ $25 × 100 = 8%.
Does this calculate my exact paycheck?
No. It estimates a full-year change under stated assumptions. Your W-4 withholdings, deductions, other income, credits, employer rounding and the raise's start date can change the actual deposit.
Calculation and content reviewed October 5, 2026. Sources: IRS 2026 tax tables, SSA contribution base and BLS CPI. Methodology and test examples · Editorial and corrections policy.