Pay Raise Calculator
Calculate your new salary after a percentage raise, or the raise percentage between two salaries.
What this calculator does
Calculates your new salary after a percentage raise, so you can see the actual dollar impact rather than just the percentage figure your employer quotes you.
Who this is for
Anyone who just received a raise offer and wants to see it in real dollar terms, negotiating a raise and wanting to check what a target percentage translates to, or comparing a raise against inflation or market benchmarks before deciding if it's a fair offer.
How this calculator works
Multiplies your current salary by (1 + raise%). For 2026, major compensation surveys (Mercer, WTW, Aon) put the average total salary increase budget at 3.5%, with pure merit increases averaging 3.2-3.3% — a raise above that range is generally considered above-market.
The formula
New Salary = Current Salary × (1 + Raise% ÷ 100). To find the raise percentage between two known salaries instead, use: Raise% = ((New − Current) ÷ Current) × 100.
Worked example
A $60,000 salary with a 5% raise: $60,000 × 1.05 = $63,000, a $3,000 increase. If instead you knew your salary went from $60,000 to $63,000 and wanted the percentage: (3,000 ÷ 60,000) × 100 = 5%.
Is Your Raise Actually Keeping Up With Inflation?
This is the question the average raise figure alone doesn't answer. CPI-U inflation ran around 4.2% as of May 2026 — meaning the "typical" 3.5% total raise most people receive this year is actually a real-terms pay cut once inflation is accounted for. A raise needs to clear roughly 4.2% just to maintain your current purchasing power; anything less means your paycheck buys less than it did a year ago, even though the number on it went up.
Raise size also varies enormously by reason, not just performance rating. A standard "meets expectations" merit raise typically lands around 3-3.5%. "Exceeds expectations" ratings commonly see 4.5-6%. Top-decile performers or retention-driven counteroffers can reach 6-12%. Promotions are a different category entirely — a genuine one-level promotion (not just a title change) has historically averaged around 8.7-15%+ depending on the size of the scope jump, well above any standard merit increase.
Before vs. after
Run the calculator above to compare your current and new salary.
Common mistakes
- Forgetting the raise is on gross, not take-home pay. A 5% raise doesn't mean 5% more in your pocket each month — taxes take a cut of the increase too.
- Not accounting for a promotion vs. a cost-of-living adjustment. A 3-4% raise might just track inflation rather than reflect real growth in your compensation — check whether it beats inflation for the year.
- Comparing raise percentage without considering total comp. Bonus structure, equity, and benefits changes can matter as much as the base salary percentage.
- Assuming a stated raise percentage applies to your full salary. Some raises apply only to a base component, excluding commission or variable pay — check what the percentage is actually calculated against before assuming your total compensation rises by that amount.
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Frequently Asked Questions
Is this before or after tax?
Before tax. Your new salary shown here is gross — use the Take-Home Pay Calculator or Income Tax Calculator to see the actual increase in your take-home pay.
What's a typical annual raise?
For 2026, major compensation surveys put the average total salary increase budget at 3.5%, with pure merit increases averaging 3.2-3.3%. A raise meaningfully above that, or tied to a promotion, is generally considered above-market.
Does a raise that matches inflation mean I'm actually earning more?
Not in real terms — a raise that only matches inflation keeps your purchasing power flat rather than growing it. With CPI-U around 4.2% as of May 2026, the typical 3.5% raise most people receive this year is actually a real-terms pay cut.
How much bigger should a promotion raise be than a normal raise?
Significantly bigger — a genuine one-level promotion (not just a title change) has historically averaged around 8.7-15%+, well above a standard 3-3.5% merit increase, since it's meant to reflect a real jump in scope and market value, not just performance.
What raise counts as "above average" based on performance?
A "meets expectations" rating typically sees 3-3.5%. "Exceeds expectations" commonly sees 4.5-6%. Top-decile performers or retention-driven counteroffers can reach 6-12%.