Money
Pay Raise Calculator
Pick salary or hourly, enter your current pay, and enter the raise as either a percent or a dollar amount. The calculator returns your new pay, the dollar raise, the percent raise, and the annual, monthly, biweekly, and weekly difference.
e.g. 60,000
Cost-of-living adjustments are often 2 to 4%; merit raises vary widely. · e.g. 5
About this estimate
The raise calculation is pre-tax. Real take-home pay depends on tax brackets, deductions, and any change to benefits when the raise takes effect.
New annual salary
$63,000.00
Raise $3,000.00 (5%)
Pre-tax raise math. Effective take-home pay depends on federal, state, and local taxes, FICA, and any benefit adjustments. Use a paycheck calculator to estimate the after-tax change.
Examples
$60,000 salary + 5% raise
New $63,000 · annual +$3,000
$60,000 salary + $3,000 raise
New $63,000 · 5.00%
$25/hr + 4% raise · 40 hr/wk
New $26/hr · annual +$2,080
$80,000 salary + 8% raise
New $86,400 · annual +$6,400
How it works
The math is one of two formulas, depending on whether the raise is given as a percent or a dollar amount.
Percent raise · new_pay = current × (1 + raise% / 100)
Dollar raise · new_pay = current + raise_amount
Percent from dollars · raise% = raise_amount / current × 100
For hourly mode, the calculator annualizes both the old and new rates as hourly × hours_per_week × 52, then reports annual, monthly, biweekly, and weekly differences.
Related money calculators
- Salary to hourly calculator for converting an annual salary to an hourly rate.
- Hourly to salary calculator for the opposite direction.
- Paycheck calculator to translate the gross raise into estimated take-home pay.
- Texas paycheck calculator for state-specific take-home with no state income tax.
- All money calculators.
Frequently asked questions
If the raise is given as a percent, new pay = current pay × (1 + percent / 100). If the raise is given as a dollar amount, new pay = current pay + raise. The percent in dollar mode is raise ÷ current pay × 100.
Cost-of-living adjustments in the U.S. usually run 2 to 4% per year, tracking inflation. Promotions or above-market merit raises are commonly 5 to 15%; bigger jumps usually come from changing employers. Numbers vary by industry, location, and the employer's compensation philosophy.
Pre-tax. The calculator returns gross pay difference, which is how raises are written into offer letters and payroll systems. Take-home pay rises by less because federal, state, and local taxes plus FICA scale with income. To estimate the after-tax change, use the paycheck calculator and compare net pay before and after.
Annual income = hourly rate × hours per week × 52. The calculator uses the hours-per-week field you provide. For a 40-hour week, a $1/hr raise is $2,080 annually; for a 32-hour week it is $1,664.
A merit raise is performance-based and varies by individual. A cost-of-living adjustment (COLA) is uniform across employees and is meant to keep pay aligned with inflation. Some employers give both each year; many give only one.
Compare both. Gross is the headline number but two offers with the same gross can have very different take-home pay if one is in a higher-tax state or has different benefits. Look at gross for the trajectory and net for actual cash flow.
Related calculators
Money
Tip Calculator
Split a bill, calculate a fair tip, and round amounts cleanly across any number of people.
Money
Sales Tax Calculator
Add or remove sales tax from any amount with a precise breakdown of subtotal, tax, and total.
Money
Dividend Calculator
Estimate annual, quarterly, and monthly dividend income from share price, holding size, and dividend yield.