Pay Raise Calculator
See exactly what a raise means for your paycheck. Enter your current salary and the percentage increase to calculate your new annual salary, the dollar value of the raise, and how much more you will earn each month — useful for reviews, promotions, and salary negotiations.
Adjust Details
Results Overview
Pay Breakdown
- Annual Raise AmountExtra pay per year before taxes
- $2,500.00
- Raise PercentagePercentage increase applied
- 5.0%
- New Monthly PayNew gross monthly pay (12 periods/yr)
- $4,375.00
- Monthly IncreaseExtra gross pay per month
- $208.33
Salary Context Comparison
Comparison based on standard 2,080 annual hours and 2026 BLS metrics.
How to Calculate a Pay Raise
To calculate a percentage raise, multiply your current salary by the raise percentage, then add the result to your current salary. The formula is: New Salary = Current Salary × (1 + Raise % ÷ 100).
For example, a 5% raise on a $50,000 salary adds $2,500 ($50,000 × 0.05), bringing the new salary to $52,500. Spread across 12 months, that is an extra $208.33 in gross pay each month.
Because the raise is calculated before taxes, your take-home increase will be smaller. A portion of every raise goes to federal income tax, FICA, and any state or local taxes.
Putting a Raise in Context
To keep pace with the cost of living, a raise generally needs to at least match inflation. If prices rise 3% in a year and your raise is 2%, your real (inflation-adjusted) pay has effectively decreased.
When negotiating, it helps to frame your request in both percentage and dollar terms, and to factor in the full compensation picture — bonuses, 401(k) match, and benefits — not just base salary.
If you are moving from one pay structure to another (for example, hourly to salaried), convert both offers to the same annual basis first so you are comparing like with like.
Worked Example: 5% Raise on a $50,000 Salary
Here is how a 5% raise breaks down on a $50,000 annual salary:
• Current annual salary: $50,000.00
• Raise percentage: 5%
• Annual raise amount: $2,500.00
• New annual salary: $52,500.00
• New monthly pay: $4,375.00
• Monthly increase: $208.33
Pay Raise Reference Table
This table shows what common raise percentages add to a $50,000 salary, including the new annual salary and the extra gross pay per month. Scale the figures to your own salary proportionally.
| Raise % | Annual Increase | New Salary | Monthly Increase |
|---|---|---|---|
| 2% | +$1,000 | $51,000 | +$83.33 |
| 3% | +$1,500 | $51,500 | +$125.00 |
| 5% | +$2,500 | $52,500 | +$208.33 |
| 7% | +$3,500 | $53,500 | +$291.67 |
| 10% | +$5,000 | $55,000 | +$416.67 |
| 15% | +$7,500 | $57,500 | +$625.00 |
| 20% | +$10,000 | $60,000 | +$833.33 |
Frequently Asked Questions
How do I calculate a percentage pay raise?
Multiply your current salary by the raise percentage (as a decimal) to get the increase, then add it to your current salary. For a 5% raise on $50,000: $50,000 × 0.05 = $2,500, so the new salary is $52,500.
Is a 3% raise good?
A 3% raise is roughly the historical average annual increase and is generally enough to keep pace with typical inflation. Whether it is 'good' depends on the current inflation rate, your performance, and market pay for your role — in higher-inflation years, 3% may amount to a real-terms pay cut.
Does this calculator show my raise after taxes?
No. The figures here are gross (pre-tax). Your take-home increase will be smaller because federal income tax, FICA (Social Security and Medicare), and any state or local taxes apply to the additional income.
How do I convert a raise percentage to an hourly increase?
Apply the same percentage to your hourly rate. A 5% raise on $25.00 per hour adds $1.25, for a new rate of $26.25. You can also divide your new annual salary by your yearly hours (typically 2,080) to find the new hourly figure.
What raise should I ask for in a promotion?
Promotion raises are commonly in the 10–20% range, versus 3–5% for a standard annual merit increase. Research market pay for the new role and target a figure that reflects the added responsibilities, then support it with your accomplishments.