Pay Raise Calculator
Calculate your new salary after a raise (by % or $), the monthly and weekly increase, and whether the raise actually beats inflation.
Gross — before tax and deductions
Typical raise: 3–5%
US average is ~2–3%/yr — used to compute your real raise
Your raise
New salary
$78,750
+$3,750 · 5.00% increase
Monthly increase
$313
Before taxes
Weekly increase
$72
Before taxes
Real raise (vs inflation)
2.00%
Ahead of 3% inflation
If you get this same 5.0% raise every year for 5 years
$95,721
+$20,721 cumulative over your current salary — compounded annually
A 5.0% raise beats 3% inflation. Your real purchasing power is up by roughly 2.0%. Solid raise.
Want to see what actually lands in your bank account? This calculator shows gross figures. To model the take-home impact of the raise (federal + state tax + FICA + 401k), run the new salary through the Take-Home Pay Calculator.
How to use this calculator
- Enter your current annual salary — gross, before tax.
- Pick raise mode —
%or$— and enter the amount. - Enter expected inflation (optional) — the US 30-year average is roughly 2.5%; recent years have run higher. Use the BLS CPI for the latest figure.
The result shows your new salary, dollar increase, percentage increase, monthly and weekly impact, the real (inflation-adjusted) raise, and a 5-year compound projection.
How it works
A pay raise has three honest measurements:
- Nominal raise — the headline number. Either the % or $ amount on the offer.
- Real raise — nominal minus inflation. The actual change in your purchasing power.
- Compound impact — what the raise becomes over multiple years if it persists.
For a $75,000 salary with a 5% raise, in a 3% inflation year:
| Component | Amount |
|---|---|
| Nominal raise | +5% = +$3,750 |
| New salary | $78,750 |
| Real raise (vs 3% inflation) | +2% |
| Monthly increase (gross) | $312.50 |
| Compounded for 5 years | $95,734 (+$20,734 cumulative) |
Why the real raise matters
A 5% raise in a 3% inflation year is a genuine 2% improvement — modest but real. A 3% raise in a 3% inflation year is a 0% real raise — you’re standing still. A 3% raise in a 6% inflation year is a 3% real pay cut — your standard of living is going down even though your salary went up.
When negotiating, the honest comparison is always nominal raise vs current inflation. If your employer offers a “raise” that doesn’t beat inflation, it’s worth asking for more or making the case that you’re already underpaid — staying flat in real terms while costs go up is, in effect, taking a pay cut.
After-tax impact
This calculator shows gross figures. Your actual monthly take-home increase will be lower because the marginal slice of the raise gets taxed at your highest combined rate (typically 25–40%). To see what actually lands in your bank account, run the new salary through the Take-Home Pay Calculator.
Frequently Asked Questions
What's a typical raise? ▾
In the US private sector, annual merit increases have averaged 3–5% in recent years. Cost-of-living adjustments (COLAs) typically match inflation — so 3% in low-inflation years, 5–7% in years like 2022. Promotions usually carry a larger jump (8–15%). Job-switching raises are commonly 10–20%, which is why staying at one employer long-term often means falling behind market rates. If your raise comes in at 2% or below in a 3%+ inflation year, you're effectively taking a pay cut in real purchasing power.
Why does inflation matter for a raise? ▾
Because the goal of a raise is to improve your real standard of living, not just the number on the paycheck. A 4% raise during 4% inflation is a 0% real raise — your buying power is unchanged. A 3% raise during 5% inflation is actually a 2% pay cut in real terms. Comparing your raise to inflation is the honest measure of whether you came out ahead. Use the BLS Consumer Price Index (CPI) for the current US inflation rate; over the long term, 2–3% is the historical norm.
Should I evaluate raises as a percentage or a dollar amount? ▾
Both. Percentage tells you how the raise compares to your existing salary (a $5k raise on $200k is small; on $40k it's significant). Dollar amount tells you the actual impact on your monthly budget. When negotiating, anchor on percentage for fairness comparisons ('industry-standard merit raises are 4%') and dollar amount for budget impact ('that extra $300/month covers my new mortgage').
What about taxes? Does this calculator account for them? ▾
No — this shows the gross raise. Your actual take-home increase will be less because the marginal slice gets taxed at your top federal + state + FICA rate combined (typically 25–40%). A $10,000 gross raise might land $6,500–$7,500 in your bank account. For the after-tax view, run the new salary through the Take-Home Pay Calculator — comparing your current take-home to the new take-home gives the true monthly impact.
How does compound growth from raises work? ▾
Each raise stacks on the previous year's salary, so even modest annual raises compound to meaningful long-term increases. A 5% raise every year for 10 years turns $75k into $122k — a 63% lifetime increase, not 50%. This is why long-tenure employees who get small but consistent raises often out-earn job hoppers who take one big jump and then stagnate. The 5-year projection in this calculator shows the compounded effect.
What if my raise is a one-time bonus, not a salary increase? ▾
Don't use this calculator for a bonus — a bonus is a one-off payment that doesn't roll forward into next year's base. Only use the raise input for permanent salary increases. If you're getting both (e.g., 'we're giving you a 3% raise plus a $5k bonus'), enter just the 3% here and treat the bonus separately as one-time income. The compound growth view especially only works for permanent raises.