How to use the pay raise calculator
- 1 Enter your current yearly salary before tax.
- 2 Enter the raise percentage offered or expected.
- 3 Enter your hours per week to see the hourly rate.
- 4 Read your new salary and the increase in every pay period.
Worked example
A 4% raise on a $60,000 salary at 40 hours a week. The new salary is $62,400, an increase of $2,400 a year or $200 a month. Biweekly pay becomes $2,400, and the hourly rate rises from $28.85 to $30.00, an extra $1.15 for every hour worked.
Is your raise really a raise?
A raise only increases what you can buy if it beats inflation. If prices rise 3% and your pay rises 2%, your real pay has fallen by about 1%. Compare your raise with the latest consumer price index figure from the Bureau of Labor Statistics.
- Percentage from two salaries: (new − old) ÷ old × 100. Going from $55,000 to $58,000 is a 5.45% raise.
- Your tax bracket only applies to the extra dollars that cross into it, so a raise never lowers take-home pay.
- Raise or bonus? A raise carries forward into every future year and into 401(k) matches; a one-off bonus does not.
See how much of the raise reaches your bank account with the Paycheck Calculator, and if you were offered a bonus instead, compare with the Bonus Tax Calculator.
Features
Every pay period
New yearly, monthly, biweekly and hourly pay in one table.
Increase shown clearly
The extra amount a year and an hour, not just a percentage.
Any hours
Uses your weekly hours for an accurate hourly rate.
When to use it
Annual review
See what a 3%, 4% or 5% raise is worth before the meeting. See the raise in your take-home pay with the Paycheck Calculator.
Negotiating
Turn a target salary into the percentage to ask for. Offered a bonus instead? Compare with the Bonus Tax Calculator.
Promotions
Compare a promotion raise with a cost-of-living raise. Put part of it in your 401(k) with the 401(k) Calculator.
Inflation check
Compare your raise with inflation to see whether your real pay went up. Check the new hourly rate with the Hourly to Salary Calculator.
Related Pay and Salary tasks
Frequently asked questions
How do I calculate a raise?
Multiply your salary by the raise percentage and add it. A 4% raise on $60,000 is $2,400, giving $62,400.
What is a typical raise?
US salary budgets for merit raises have run at about 3% to 4% in recent years, with promotions often bringing 10% or more.
How do I find the percentage from two salaries?
Subtract the old salary from the new one, divide by the old salary and multiply by 100. Use the percentage increase calculator for this.
How much of my raise will I keep?
Your raise is taxed at your marginal rate plus 7.65% for Social Security and Medicare. Use the paycheck calculator to see the after-tax change.
Is a raise below inflation a pay cut?
In real terms, yes. If prices rise 3% and your raise is 2%, your pay buys a little less than before.
How is the hourly rate worked out?
The yearly salary divided by hours per week times 52 weeks. At 40 hours that is 2,080 hours a year.
Does a raise change my tax bracket?
Possibly, but only the dollars above the bracket threshold are taxed at the higher rate. The rest of your pay keeps its old rate, so a raise always leaves you with more money after tax.
When should I ask for a raise?
Good times are after a strong review, after taking on new responsibilities, or when you have market data showing similar jobs pay more. Bring numbers: your results and a target salary.
Is a raise or a bonus better?
A raise is usually better because it is permanent and future raises are built on it. It may also increase your 401(k) match and the salary used for some benefits.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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