Pay Raise Calculator
A free pay raise calculator. Enter your current salary or hourly rate, add your raise as a percent or a new salary, and see your new annual pay, the raise amount, your new hourly rate, and what lands per paycheck.
This free pay raise calculator converts your current salary or hourly rate into a new annual salary from a raise percentage or a target new salary, then shows the annual increase, the new hourly rate, and gross pay per paycheck.
Your new pay
Gross pay, before taxes and deductions. Estimates only, for general information. See Terms of Use.
What counts as a good raise
A raise only means something when you compare it to inflation and the market. A typical merit raise lands between 3 and 5 percent. A cost-of-living adjustment usually runs 2 to 3 percent and exists to keep your purchasing power flat, not to reward performance. A promotion or role change commonly brings 10 to 15 percent or more, because the job itself grew.
Inflation is the yardstick that decides whether a raise is real. If prices rise 3 percent in a year and your pay rises 3 percent, your buying power did not move. A genuinely good raise beats inflation by a clear margin and leaves you ahead after costs. Subtract the current inflation rate from your raise percentage to get the real raise, and judge the offer on that number instead of the headline percent.
Use the calculator output as a negotiation tool. Employers often talk in percentages because they sound modest, while you should talk in annual dollars because that is what lands in your bank account. A 4 percent raise on $65,000 is $2,600 a year, or about $100 per biweekly paycheck before taxes. Knowing both numbers lets you counter with a specific figure instead of a vague ask.
Merit raises reward your performance, COLA adjustments track prices, and market adjustments fix pay that drifted below what competitors offer. If your research shows similar roles pay 12 percent more, that is a market problem, and a 3 percent merit bump will not close it. Bring the annual number, the percent, and one market data point to the conversation, and ask for the figure that makes the math work.
Pay raise questions
What is considered a good raise percentage?
A typical merit raise is 3 to 5 percent, a cost-of-living adjustment is 2 to 3 percent, and a promotion or role change usually brings 10 to 15 percent or more. A raise is genuinely good when it beats inflation by a clear margin, so subtract the current inflation rate from the percentage to get the real raise.
What is the difference between a merit raise and a COLA?
A merit raise rewards your performance and typically runs 3 to 5 percent. A COLA, or cost-of-living adjustment, tracks prices and usually runs 2 to 3 percent. It keeps your purchasing power flat rather than rewarding results. A market adjustment is a third kind, fixing pay that drifted below what competitors pay for the role.
How do I calculate my new salary after a raise?
Multiply your current salary by one plus the raise as a decimal. For a 4 percent raise on $65,000, multiply 65,000 by 1.04 to get $67,600. The calculator above does this instantly and also shows the raise in annual dollars, your new hourly rate, and per-paycheck pay.
How much is a $1 raise per hour in yearly pay?
At 40 hours a week and 52 weeks a year, one extra dollar per hour equals $2,080 per year before taxes. A $2 per hour raise is $4,160 a year, which is why hourly workers should always convert the number to annual dollars when comparing offers.