Raise Calculator
Calculate the impact of a salary raise on your annual income, monthly pay and take-home.
Enter Details
Results
Related Calculators
Frequently Asked Questions
What is a good salary raise percentage?
A typical cost-of-living raise is 2-4% annually. A merit raise is usually 4-8%. A promotion raise is typically 10-20%. In a high-inflation environment, raises under 5% may not maintain purchasing power. Negotiating a higher raise at a new job is often more effective than annual increments.
How do I negotiate a salary raise?
Research market salaries on Glassdoor, LinkedIn Salary, and Levels.fyi. Document your accomplishments with specific metrics ($X revenue generated, Y% cost reduction). Ask for a meeting, present your case and request a specific number. Target 10-20% above your minimum acceptable figure to leave negotiation room.
When is the best time to ask for a raise?
Ask during annual reviews, after completing a major project, when you have taken on new responsibilities, when you have a competing offer, or when the company is performing well. Avoid asking during budget cuts, layoffs or immediately after a poor performance period.
What a raise is worth after taxes and inflation
A raise has three different sizes: the gross number on the offer, the net change in your paycheck, and the real change after inflation. The table runs typical raises through all three. Net assumes about 30% goes to federal tax, FICA and state tax at the margin; inflation is set at 3%.
| Salary | Raise | Gross per year | Gross per month | Net per month (about) | Real raise after 3% inflation |
|---|---|---|---|---|---|
| $50,000 | 3% | $1,500 | $125 | $88 | 0.0% |
| $50,000 | 5% | $2,500 | $208 | $146 | 1.9% |
| $60,000 | 4% | $2,400 | $200 | $140 | 1.0% |
| $75,000 | 10% | $7,500 | $625 | $438 | 6.8% |
| $90,000 | 3.5% | $3,150 | $263 | $184 | 0.5% |
Real raise = (1 + raise) / (1 + inflation) - 1. A 3% raise in a 3% inflation year is a 0% raise in purchasing power.
Worked example: the 3% raise
$50,000 to $51,500. The extra $1,500 is $125 a month gross. At a 22% federal rate, 7.65% FICA and a 4% state rate, about $42 is withheld, leaving $83 to $88 more in the monthly paycheck. If prices rose 3% over the same year, the $51,500 buys exactly what $50,000 bought a year earlier. The employee is working the same job for the same real pay, which is what a cost of living adjustment is: it holds the line, it does not move it.
Percent versus dollars, and compounding
A 5% raise on $50,000 ($2,500) is smaller than a 3% raise on $90,000 ($2,700). When comparing offers, compare the dollars. Raises compound: 4% a year for ten years turns $50,000 into $74,012, and the difference between 3% and 5% a year over that decade is $14,249 in year ten salary and about $70,000 in cumulative pay.
Negotiating with the numbers
The strongest case is market data: the posted range for the same role at other employers, and the cost of replacing you (recruiters put it at 50% to 100% of annual salary for professional roles). Ask for a specific figure above your target, not a percentage. A raise of 10% to 20% usually requires a promotion or a competing offer; 3% to 5% is the typical merit range in 2026 for US employers, per the major compensation surveys. If the salary is fixed, a one-time bonus, extra vacation days, a title change or a remote arrangement have real value and are easier for a manager to approve.
The retirement effect
A raise of $2,500 a year, with 6% going into a 401(k) and a 50% employer match on that, adds $225 a year to retirement savings before any investment growth. Over 25 years at 7% that is about $15,200. Raising the contribution rate by one point with each raise, before the new money reaches the checking account, is the easiest way to lift the savings rate without feeling it.