Pay Raise Calculator
This calculator shows what a pay raise is worth: your new pay, the raise as a percentage, the increase per pay period, and the extra amount per year. It works whether the raise is a percentage ("you're getting 4%") or a flat amount ("an extra $1.50 an hour").
It also works in reverse. Before a review or negotiation, enter the raise you plan to ask for and see what it adds up to. A raise that sounds small per hour often looks very different as an annual figure.
The pay raise formulas
Percentage raise: New pay = Current pay × (1 + Raise% ÷ 100)
Flat raise: New pay = Current pay + Raise amount
Raise% = (New pay − Current pay) ÷ Current pay × 100
To convert per-period pay into an annual figure, the calculator multiplies by the periods in a year: 52 weeks, 26 biweekly paychecks, 12 months, or hours per week × 52 for hourly pay.
Worked example
You earn $55,000 per year and receive a 4% raise:
| New salary | $55,000 × 1.04 = $57,200 |
|---|---|
| Extra per year | $2,200 |
| Extra per month | $183.33 |
| Extra per biweekly paycheck | $84.62 |
In the flat-amount direction: a barista on $16/hour offered "an extra dollar an hour" is getting a 6.25% raise worth $2,080 per year at full-time hours. That is a bigger percentage than many salaried annual reviews.
What counts as a good raise?
Annual merit raises in the US, UK, Canada and Australia have typically averaged 3–5% in recent years, with promotions landing higher. Two benchmarks put an offer in context. First, compare it with inflation: a raise below inflation is a pay cut in real terms. Second, compare it with switching jobs: people who change employers often see larger jumps than internal raises, which is useful leverage even if you would rather stay.
The results are gross. A raise increases taxable income, so take-home pay rises by less than the headline amount. If you contribute a percentage of salary to retirement, part of the raise goes there too.
Frequently asked questions
How do I calculate a 3% raise?
Multiply your current pay by 1.03. On $50,000 a year, a 3% raise is $50,000 × 1.03 = $51,500. That is an extra $1,500 per year, or $125 per month before tax.
Is a 5% raise good?
A 5% raise is above the typical 3–4% annual merit increase, so in most years it is a solid outcome for staying in the same role. Whether it is good for you depends on inflation, your performance, and what your role pays elsewhere.
How do I work out the percentage if I know the new salary?
Subtract old pay from new pay, divide by old pay, and multiply by 100. Going from $48,000 to $52,000 is (4,000 ÷ 48,000) × 100 = 8.33%. You can also enter the difference as a flat amount and read the percentage from the results.
Will a raise change my take-home pay by the same amount?
No. The raise is added to gross pay, and tax plus any percentage-based deductions come out of it. Expect roughly 60–80% of the raise to reach your bank account in most English-speaking countries.
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This calculator is for general information and education only. It is not professional advice. Confirm important decisions with a qualified adviser.