Raise Calculator
Calculate your new salary after a raise. See the dollar increase, percentage change, and impact on your paycheck and annual earnings.
Current & New Salary
Enter either the raise percentage or the new salary to calculate the other
Your Raise Summary
Before & After Comparison
| Pay Period | Before Raise | After Raise | Increase |
|---|---|---|---|
| Weekly | $0 | $0 | $0 |
| Biweekly | $0 | $0 | $0 |
| Monthly | $0 | $0 | $0 |
| Annual | $0 | $0 | $0 |
How Your Raise Compares
Negotiating Your Raise
When asking for a raise, research salary data for your position, document your achievements, and time your request strategically. Consider the full compensation package including benefits, bonuses, and growth opportunities.
Understanding Raise Types
- Cost of Living Adjustment (COLA): Keeps pace with inflation (typically 2-4%)
- Merit Raise: Based on performance (typically 3-5%)
- Promotion Raise: Accompanies new responsibilities (typically 8-15%)
- Market Adjustment: Brings salary in line with market rates
Frequently Asked Questions
A typical annual raise is 3-5%. Cost of living adjustments are usually 2-4%, while merit-based raises for strong performance might be 5-8%. Promotions often come with 8-15% increases.
Most companies review salaries annually during performance reviews. However, you can request a raise anytime if you've taken on significant new responsibilities or can demonstrate you're underpaid compared to market rates.
Only the portion of your income above a bracket threshold is taxed at the higher rate. A raise never reduces your take-home pay, though a larger portion may be subject to higher marginal tax rates.
About the Raise Calculator
A raise looks bigger before taxes than after. A 5% raise on $60,000 is $3,000 gross — but the take-home increase is closer to $1,800-2,200. This page covers what to expect from a raise, the impact on retirement contributions, and how to evaluate whether to ask for more.
The Formula
New salary = Old salary × (1 + Raise %). New take-home ≈ New salary × Effective tax retention rate (typically 65-75%). Real raise (after inflation): (1 + Raise %) ÷ (1 + Inflation %) − 1.
Worked Example
$70,000 → 6% raise = $74,200. Marginal rate 22% federal + 5% state = 27% on the new $4,200. Net raise: $3,066/year or $255/month. At 3% inflation, real raise: 1.06/1.03 − 1 = 2.9%.
Cost of living vs merit raise
Cost-of-living adjustment (COLA): keeps pace with inflation, typically 2-4%. Merit raise: above COLA, rewards performance. A 3% raise in a 3% inflation year is flat in real terms — you didn't get a raise. Average US merit raise is currently 3-4%.
The compounding effect
Salary increases compound. A 4% raise every year for 10 years means you earn 48% more, not 40% more. Lobby for raises consistently rather than letting them slide.
Adjusting retirement contributions
If you contribute a percentage to 401(k), your contribution rises with each raise. If you contribute a fixed dollar amount, your savings rate falls. Best practice: increase contribution percentage by 1-2 points with each raise until you hit the max.
Common Mistakes
- Celebrating gross raises without calculating net.
- Letting lifestyle inflation eat the entire raise. The first $X of every raise should go to savings.
- Not negotiating. Counter-offers within reason are almost always accepted.
Frequently Asked Questions
What's a 'good' raise?
Above inflation is positive. 3-5% is typical for merit. 10%+ usually requires promotion or external job offer.
Will a raise push me into a higher bracket?
Maybe — but only the dollars in the new bracket are taxed at the higher rate. You still keep most of the raise.
This calculator is for informational purposes only and does not constitute financial, tax, or legal advice. Consult a licensed professional before making significant financial decisions.