Pay Raise Calculator
Enter your current pay and the raise as a percentage, a dollar amount or a new figure. You get the new salary and hourly rate, the difference per paycheck, the real raise after inflation, and where the rate lands you in five years.
Recent US CPI has run 2.5-3.5%.
New pay
$64,480
+$2,480 (4.00%)
Per biweekly paycheck
+$95
$2,385 → $2,480 gross
Real raise after inflation
0.97%
actual gain in purchasing power
In 5 years at this rate
$75,432
$62,000 × 1.040⁵
| Before | After | Difference | |
|---|---|---|---|
| Hourly | $29.81 | $31.00 | +$1.19 |
| Weekly | $1,192 | $1,240 | +$48 |
| Biweekly | $2,385 | $2,480 | +$95 |
| Monthly | $5,167 | $5,373 | +$207 |
| Annual | $62,000 | $64,480 | +$2,480 |
Annual increase by salary and raise percentage
Gross dollars per year. Divide by 26 for the biweekly paycheck difference.
| Salary | 2% | 3% | 4% | 5% | 7% | 10% |
|---|---|---|---|---|---|---|
| $40,000 | +$800 | +$1,200 | +$1,600 | +$2,000 | +$2,800 | +$4,000 |
| $50,000 | +$1,000 | +$1,500 | +$2,000 | +$2,500 | +$3,500 | +$5,000 |
| $60,000 | +$1,200 | +$1,800 | +$2,400 | +$3,000 | +$4,200 | +$6,000 |
| $75,000 | +$1,500 | +$2,250 | +$3,000 | +$3,750 | +$5,250 | +$7,500 |
| $90,000 | +$1,800 | +$2,700 | +$3,600 | +$4,500 | +$6,300 | +$9,000 |
| $110,000 | +$2,200 | +$3,300 | +$4,400 | +$5,500 | +$7,700 | +$11,000 |
Real raise after inflation
| Raise | 2% inflation | 2.5% inflation | 3% inflation | 3.5% inflation | 4% inflation | 5% inflation |
|---|---|---|---|---|---|---|
| 2% | 0.00% | -0.49% | -0.97% | -1.45% | -1.92% | -2.86% |
| 3% | 0.98% | 0.49% | 0.00% | -0.48% | -0.96% | -1.90% |
| 4% | 1.96% | 1.46% | 0.97% | 0.48% | 0.00% | -0.95% |
| 5% | 2.94% | 2.44% | 1.94% | 1.45% | 0.96% | 0.00% |
| 7% | 4.90% | 4.39% | 3.88% | 3.38% | 2.88% | 1.90% |
| 10% | 7.84% | 7.32% | 6.80% | 6.28% | 5.77% | 4.76% |
Ten years of raises, from $60,000
| Annual raise | Year 1 | Year 3 | Year 5 | Year 10 |
|---|---|---|---|---|
| 2% | $61,200 | $63,672 | $66,245 | $73,140 |
| 3% | $61,800 | $65,564 | $69,556 | $80,635 |
| 4% | $62,400 | $67,492 | $72,999 | $88,815 |
| 5% | $63,000 | $69,458 | $76,577 | $97,734 |
| 7% | $64,200 | $73,503 | $84,153 | $118,029 |
Frequently Asked Questions
How do I calculate a pay raise?
New pay = current pay × (1 + raise %). A 4% raise on $60,000 is $62,400, an extra $2,400 a year or about $92 per biweekly paycheck before tax. To go the other way, raise % = (new − old) ÷ old × 100: $60,000 to $63,000 is 5%.
What is a good raise?
US employers have budgeted about 3.5-4% for annual merit increases in recent years, with 3% the floor for a solid performer and 5-8% for a strong one or a promotion. Anything under the inflation rate is a real-terms cut. Switching jobs has typically brought 10-20%, which is why the market rate matters more than the merit matrix.
What does a raise look like after inflation?
Real raise = (1 + raise) ÷ (1 + inflation) − 1. A 4% raise with 3% inflation is a real gain of 0.97%; a 3% raise with 3% inflation is 0.00%, i.e. standing still; a 2% raise with 3% inflation is a 0.97% pay cut in what your money buys.
How much of my raise will I actually see?
Roughly 65-75% of it, after federal and state income tax and 7.65% payroll tax on the increase; the example on this page lands at 65%. A raise is taxed at your marginal rate because it sits on top of existing income, so a $3,000 raise in the 22% bracket in a 5% state is about $1,970 in take-home over the year.
Why do small percentage differences matter?
Because raises compound. $60,000 growing 3% a year is $80,635 after ten years; at 5% it is $97,734. The 2-point gap is $17,099 a year by year ten, and every future raise is a percentage of the bigger base.
These calculators apply the federal FLSA overtime rules, the 2025 federal overtime deduction as enacted, and standard pay-period arithmetic. They are estimates, not payroll, tax or legal advice: your state's rules, your employer's policy and your full tax return decide the real figures. Exempt employees get no overtime regardless of what the calculator shows.