Enter your current pay and either a raise percentage or your new pay to see the increase broken down by pay period -- plus how it compares to current inflation.
This tool provides estimates for planning purposes and is not financial advice.
Pay Raise Calculator
LiveThe formulas
A $60,000 salary with a 5% raise: $60,000 × 1.05 = $63,000, a $3,000 raise (about $250/month, $57.69/week). Against BLS's current 3.4% inflation figure (12 months to July 2026), the real gain in purchasing power is about 1.55% -- meaningfully less than the 5% headline number, but still a genuine gain.
Why this calculator's numbers don't match others you may have seen
Checking several other pay-raise calculators while building this one turned up two recurring, checkable problems worth naming directly, since they explain why the same 5% raise can show a different "real raise" or "after-tax" figure depending on which tool you use:
| What other tools commonly do | What that produces | What this tool does instead |
|---|---|---|
| Cite an inflation figure without a release date | Numbers found ranging from 2.8% to 4.2% across tools all labelled "2026" — several clearly from earlier months, since CPI is published monthly and moves | Cites the exact BLS release and date used (3.4%, 12 months to July 2026), so you can check whether a newer one exists |
| Show a specific after-tax dollar figure | A precise-looking number built on a flat assumed rate (commonly 25%) that ignores filing status, state, and bracket — false precision | Shows gross figures only, and points to the Income Tax Calculator for an estimate built from your actual details |
Neither of these is a claim that other tools are built carelessly — a flat-rate shortcut is a reasonable simplification if it's labelled as one. The issue is when it isn't, and a rough estimate gets presented with a confidence it hasn't earned.
Why the "real raise" number is smaller than the headline
A raise percentage measures how much bigger your paycheck got. It says nothing about whether that paycheck buys more than it used to — that depends entirely on inflation over the same period (the Inflation Calculator covers this more broadly). Most pay-raise tools either skip this comparison, or approximate it by simple subtraction (5% raise minus 3.4% inflation = "1.6% real gain"). That subtraction is close at everyday magnitudes but not exact; the precise method compounds the two rates, which is what this calculator uses.
| Method | Formula | 5% raise, 3.4% inflation gives |
|---|---|---|
| Simple subtraction (common shortcut) | Raise % − Inflation % | 1.60% |
| Compounding (this tool) | (1+Raise) ÷ (1+Inflation) − 1 | 1.55% |
The gap between the two methods is small at typical raise sizes, but grows at larger percentages -- using the exact formula costs nothing and is never wrong.
Typical raise sizes, for context
| Type of raise | Typical range |
|---|---|
| Cost-of-living / standard annual | 3–5% |
| Merit / above-average performance | 5–8% |
| Promotion | 10–20% |
| Changing employers | Often larger than an internal raise of any kind — the Job Offer Comparison Calculator weighs a new offer against staying put |
These are general ranges commonly cited in compensation industry reporting, not a guarantee of what any specific employer will offer -- treat them as a rough benchmark for a conversation, not a target.
Using this before a negotiation, not just after an offer
Most raise calculators assume you already have a number to check. This one works just as well the other direction: before a review or negotiation, switch to "My new salary," enter what you'd consider a strong outcome, and see the real percentage and the real-terms gain that number represents — a concrete anchor instead of a round number picked because it sounds reasonable.
- Check it against the benchmark table above first. A number inside the merit-raise range (5–8%) is a stronger, more defensible ask than one that sounds arbitrary.
- Run it through the real-raise comparison. If your target barely clears current inflation, you're negotiating for standing still, not getting ahead — useful to know before you're in the room.
- Have the dollar breakdown ready. "That's about $58 more per week" lands differently than a percentage alone, in either direction of the conversation.
What repeated raises actually add up to
A raise doesn't just add to this year's paycheck — it becomes the new base every future raise is calculated from. That compounding effect is easy to underestimate with simple mental math: a 5% raise repeated for 10 years is not the same as adding 50% to your original salary, even though that's the intuitive shortcut.
| Time | Naive linear guess (wrong) | Actual compounded result |
|---|---|---|
| After 5 years | $75,000 (60,000 + 5×5%) | $76,577 |
| After 10 years | $90,000 (60,000 + 10×5%) | $97,734 |
The gap between the two columns grows every year — by year 10 the compounded result is already almost $8,000 higher than the naive guess. This is also why a smaller raise received consistently, year after year, can eventually outpace a single larger one-time bump.
Common mistakes
Frequently asked questions
How do I calculate my raise percentage?
Subtract your old salary from your new salary, divide by the old salary, then multiply by 100. Going from $50,000 to $53,000 is ($53,000 − $50,000) ÷ $50,000 × 100 = 6%.
What is a good raise percentage in 2026?
A standard cost-of-living raise is typically 3–5%, merit raises for strong performance run 5–8%, and promotions are usually 10–20%. "Good" also depends on current inflation -- a 4% raise when inflation is running at 3.4% (the current BLS figure) still grows your real purchasing power, just less than the headline number suggests.
Does a raise change my tax bracket?
It can push part of your income into a higher bracket, but the US uses a progressive system -- only the income above each threshold is taxed at the higher rate, not your entire salary. A raise essentially never results in less take-home pay overall because of bracket changes alone.
Why don't you show my exact after-tax raise?
Because doing it honestly needs more than a salary and a raise percentage -- filing status, state, existing income level, and pre-tax deductions all change the actual number meaningfully. A generic flat-rate assumption (common on other raise calculators, often 25%) can be off by a real amount. Use the Income Tax Calculator with your full details for an honest estimate.
What inflation rate does this calculator use?
The most recent U.S. Bureau of Labor Statistics Consumer Price Index figure available: 3.4% for the 12 months ending July 2026, released August 12, 2026. The BLS releases a new figure roughly monthly, so check the source link below for anything more current than that release.
How is a "real raise" different from a normal raise percentage?
A raise percentage measures how much bigger your paycheck got. A real raise measures how much more that paycheck can actually buy, after accounting for the fact that prices generally rise too. A 5% raise during 3.4% inflation is only about a 1.55% real gain -- the rest of the headline number just keeps you even with rising prices, it doesn't add new purchasing power.
How do I calculate a raise on an hourly wage?
The same percentage formula applies directly to an hourly rate: new rate = current rate × (1 + raise % ÷ 100). A $22/hour rate with a 5% raise becomes $23.10/hour. Enter your annual-equivalent figure above (hourly rate × hours per week × 52) to see the same breakdown by pay period.
Is a raise the same as a bonus?
No. A raise permanently increases your base salary going forward, compounding into every future raise calculated from it. A bonus is a one-time payment that doesn't change your base salary at all -- next year's raise is still calculated from the pre-bonus number.
Sources
- Current inflation figure. U.S. Bureau of Labor Statistics, Consumer Price Index -- 3.4% for the 12 months ending July 2026 (not seasonally adjusted), released August 12, 2026. The BLS publishes a new release roughly monthly; check the source directly for anything published after this page's last update.
- Real-raise formula. Standard compounding-ratio method for combining two percentage rates -- general economics/finance convention, not a single named source.
- Typical raise benchmarks. General ranges commonly reported across compensation industry salary-budget surveys, presented here as broad context rather than as a specific cited figure, since exact annual survey numbers vary by publisher and update on their own schedule.
Related calculators
See the full list of Financial calculators, or try:
- Income Tax Calculator — an honest after-tax estimate using your actual details
- Salary Calculator
- Salary to Hourly Calculator
- Inflation Calculator
- Job Offer Comparison Calculator