Pay Raise Calculator
Compute the new salary and dollar increase from a percentage raise, or the raise-percent from an old-and-new salary pair (via the direction toggle).
Last updated: September 2026
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About this calculator
A pay raise expressed as a percentage answers the practical question "how much more will I earn per year?". new_salary = current_salary × (1 + raise_pct / 100). Going the other way, raise_pct = (new_salary − current_salary) / current_salary × 100.
In the US, the median annual merit raise has hovered near 3–4% in low-inflation years and jumped to 4.5–5% during the 2022–2023 inflation spike (Willis Towers Watson, SHRM). Promotions add 8–12% on top. High performers at growth companies routinely see 10–20% year-over-year via role changes; a lateral move to a competitor typically buys 10–20% versus staying. Anything above 15% inside the same role and title should be verified — some employers dress up a signing bonus or a temporary premium as a raise, and it does not compound into future raises the way base salary does.
How to use
Example — 5% raise on $65 000. new = 65 000 × 1.05 = $68 250. Increase = $3 250. Monthly, that is ~$271 more before taxes. Example — going the other way. Current $60 000, offer $72 000. Change = (72 000 − 60 000) / 60 000 = 20%. That is a promotion-tier increase. Combine with /en/calculators/payroll/take-home-paycheck-calculator/ to see the take-home effect after tax withholding.
Frequently asked questions
What is a good annual raise?
3–5% is a typical merit raise in low-inflation years and 4–7% during higher-inflation periods. Promotions add 8–15% on top. Anything below 2% barely covers inflation and is effectively a real pay cut over time.
How do I convert a raise to my hourly rate?
Divide the new annual salary by your paid hours per year — typically 2 080 for a full-time salaried employee (40 hr/week × 52 weeks). Use /en/calculators/payroll/salary-to-hourly-converter/ for the direct conversion.
Is the raise percentage compounded across years?
Yes. A 4% raise every year for 5 years is 1.04^5 = 21.7% growth, not 20%. Multi-year compensation offers should be discounted with the actual expected growth rate.
Should I count bonuses in the raise?
No — bonuses are typically discretionary and do not compound into future base pay. Only base salary changes qualify as a real raise. Compare base-to-base when evaluating offers.