5% Raise Calculator
A 5% raise: the annual increase, the change per paycheck, what you keep after tax and what it is worth after inflation.
How much is a 5% raise?
Five percent is the number most people have in mind when they picture a good raise. On $60,000 it is $3,000 a year — about $115 per bi-weekly paycheck before tax and roughly $92 after federal income tax and FICA. It is comfortably above both the market budget and inflation, so it is one of the few increases that noticeably changes what you can afford.
| Current salary | New salary | Raise | Per bi-weekly check | After tax |
|---|---|---|---|---|
| $30,000 | $31,500 | +$1,500.00 | +$57.69 | $1,205.25 |
| $40,000 | $42,000 | +$2,000.00 | +$76.92 | $1,607 |
| $50,000 | $52,500 | +$2,500.00 | +$96.15 | $2,008.75 |
| $60,000 | $63,000 | +$3,000.00 | +$115.38 | $2,410.50 |
| $75,000 | $78,750 | +$3,750.00 | +$144.23 | $2,638.13 |
| $100,000 | $105,000 | +$5,000.00 | +$192.31 | $3,517.50 |
| $150,000 | $157,500 | +$7,500.00 | +$288.46 | $5,126.25 |
Is a 5% raise good?
Against 2026 salary increase budgets of around 3.5%, a 5% raise is roughly one and a half times the average. Annual merit cycles produce it only for the strongest performers; more often 5% arrives with a promotion, a scope change, an internal transfer or a counter-offer. If you received 5% in a routine review, you are being actively retained.
Against inflation of 3.4% (12 months ending July 2026), a 5% raise is worth +1.55% in real purchasing power — a genuine gain.
A 5% raise on an hourly wage
The same percentage applied to an hourly rate, at 40 hours a week:
| Current rate | New rate | Extra per hour | Extra per year |
|---|---|---|---|
| $15.00/hr | $15.75/hr | +$0.75 | +$1,560.00 |
| $18.00/hr | $18.90/hr | +$0.90 | +$1,872.00 |
| $20.00/hr | $21.00/hr | +$1.00 | +$2,080.00 |
| $25.00/hr | $26.25/hr | +$1.25 | +$2,600.00 |
| $30.00/hr | $31.50/hr | +$1.50 | +$3,120.00 |
| $40.00/hr | $42.00/hr | +$2.00 | +$4,160.00 |
What to do with a 5% offer
Five percent is also a useful target number to negotiate towards, because it is ambitious without being outlandish — it is within the range a manager can usually justify to a compensation partner with evidence, which a 15% ask is not. If you are preparing for a review, the practical version of "I want more" is "I am asking for 5%, and here is the market data and the record that supports it".
5% raise FAQ
How much is a 5% raise on $60,000?
$3,000 a year, taking your salary to $63,000. That is +$115.38 per bi-weekly paycheck before tax, and about $92.71 after federal income tax and FICA.
Does a 5% raise beat inflation?
Yes, narrowly. With CPI at 3.4% over the 12 months ending July 2026, a 5% raise is worth +1.55% in real purchasing power.
How much of a 5% raise do I keep after tax?
On a $60,000 salary, about $2,410.50 of the $3,000 — roughly 80%. The rest goes to federal income tax and to Social Security and Medicare at 7.65%. State income tax reduces it further where it applies.
Is a 5% raise good?
Yes. It is well above the typical 3.5% US salary increase budget and above inflation, so it is a genuine improvement in purchasing power rather than a nominal one.
If I get a 5% raise, how much will I earn?
Multiply your current pay by 1.05. On $60,000 that is $63,000; on $80,000, $84,000; on $100,000, $105,000. Enter your own figure in the calculator to see it per paycheck and after tax.
Other raise percentages
- 1% raise
- 1.5% raise
- 2% raise
- 2.5% raise
- 3% raise
- 3.5% raise
- 4% raise
- 4.5% raise
- 6% raise
- 7% raise
- 8% raise
- 10% raise
- 15% raise
- 20% raise
Related calculators
- Pay Raise CalculatorAny percentage, any pay period.
- Raise After TaxesWhat you keep, by filing status and state.
- Cost of Living RaiseYour raise against inflation.
- Salary Over Time5% raises compounded over 10 years.
Estimates are for planning only. This is not tax, legal or financial advice.