Salary Increase Calculator

How to calculate a raise

A percentage raise multiplies your current salary by the percentage. A 5% raise on $60,000 adds $3,000, taking you to $63,000. Switch to the dollar mode if you know the exact amount and want to see what percentage it represents.

New salary = current salary × (1 + raise % ÷ 100)

New salary after a 3%, 5% or 10% raise

Quick reference for common raises on popular salaries. These are gross (before-tax) new-salary figures — use the calculator above for the exact per-paycheck difference.

Hourly pay raise table

New hourly rate and the extra gross pay per year at 40 hours a week (2,080 hours).

What raise is normal in 2026?

• Annual merit raise: about 3–4%. Major US compensation surveys (Mercer, WTW) put average 2026 merit budgets around 3.5%.
• Top performers: 5–7%. Employers spread the budget unevenly, so strong reviews earn above the average.
• Internal promotion: 8–12%. Usually tied to a new title and pay band.
• Changing jobs: 10–20%. Switching employers historically delivers the largest jumps.

Use the preset buttons in the calculator to compare each scenario instantly.

How a raise affects your take-home pay

The new-salary figure above is gross. Because a raise can push part of your income into a higher tax bracket, your take-home gain is a little smaller than the headline number. To see exactly what lands in your account after federal, FICA and state taxes, run the new salary through the paycheck calculator by state. For the full method behind percentage and dollar raises, read our guide on how to calculate a pay raise.

To check whether your raise actually beats rising prices, compare it with the inflation calculator. If the raise was approved with an earlier effective date, the retro pay calculator shows the back pay you are owed.

Salary increase calculator FAQ

How do I calculate a salary increase?

Multiply your current salary by the raise percentage to get the increase, then add it to your current salary. A 5% raise on $60,000 is $3,000, giving a new salary of $63,000.

What is a good salary increase percentage?

Typical annual raises run about 3–5%, while promotions or job changes often bring 10–20% or more. Anything above inflation means real growth in your pay.

How much is a 5% raise on $60,000?

A 5% raise on a $60,000 salary adds $3,000 per year, taking you to $63,000 — about $250 more per month before taxes.

Is a 5% raise good?

A 5% raise is at the upper end of a typical annual increase and beats most years' inflation, so it represents real growth in your buying power. For a promotion or a job change, though, 10–20% is more common, so it's worth benchmarking against the move you're making.

How do I calculate a 3% raise?

Multiply your current salary by 0.03 and add it back. On $50,000 a 3% raise is $1,500, taking you to $51,500 — roughly $125 more per month before taxes.

How much is a 10% raise?

A 10% raise multiplies your salary by 1.10. On $60,000 that's an extra $6,000 a year for a new salary of $66,000 — about $500 more per month before taxes. Larger raises like this usually come with a promotion or a new job.

Does a raise change my tax bracket?

A raise can push part of your income into a higher tax bracket, but only the dollars above the bracket threshold are taxed at the higher rate — your whole salary is never taxed at one rate. That's why your take-home increase is a little smaller than the gross raise.

How do I calculate a raise if I'm paid hourly?

Multiply your hourly rate by the raise percentage and add it back: a 5% raise on $20/hr is $1.00, for a new rate of $21/hr. At 40 hours a week that's about $2,080 more per year before tax.

How much of my raise will I actually take home?

Every extra dollar loses 7.65% to Social Security and Medicare, plus your marginal income-tax rate. In the common 22% federal bracket with no state tax you keep about 70 cents per dollar, so a $3,000 raise adds roughly $2,110 a year, or about $81 per bi-weekly paycheck.

What raise should I ask for in a promotion?

Promotions typically come with 8–12%, versus about 3–4% for a standard annual merit increase. If you're moving to a new employer, 10–20% is a common target.