Pay Raise Calculator
See exactly what your next raise is worth. Enter your current pay and the raise — as a percentage or a flat dollar amount — and get your new salary per hour, week, month and year, plus the size of the increase.
To find your new pay, add the raise to your current pay. A 5% raise on $60,000 is $63,000 a year — an increase of $3,000/yr (about $250/month). For a percentage raise, multiply your salary by the percent; for a flat raise, just add the dollars and divide by your old pay to get the percent.
Enter your numbers
New to this? Leave the defaults — they're realistic — and just change your current pay and the raise.
How to use it
- Enter your current pay and pick whether it's per hour or per year.
- Choose the raise type — a percentage (like 5%) or a flat dollar amount (like $3,000).
- Type the raise value. The new pay, the dollar increase and the percentage update as you type.
- Check the hours-per-week field if you're hourly or want accurate hourly↔annual conversions. Full-time is 40 hours.
- Read the tiles for your increase per year, new annual and monthly pay, and the percent increase.
How a pay raise works
A pay raise increases your gross pay — the amount before tax and deductions. Raises come in two flavours. A percentage raise is expressed as a percent of your current pay, so the dollar value grows with your salary: 5% is worth more on $80,000 than on $40,000. A flat raise is a fixed dollar amount added on top, regardless of where your pay started.
The two are interchangeable — every flat raise has an equivalent percentage and vice versa. A $3,000 raise on a $60,000 salary is a 5% raise, because $3,000 is 5% of $60,000. That's why this calculator always shows you both: the dollar increase and the percentage, so you can compare offers stated in different ways.
Because pay is often quoted differently for different jobs, the calculator converts your new pay into per hour, per week, per month and per year using a standard full-time year of 40 hours a week × 52 weeks = 2,080 hours. That lets you compare an hourly raise against a salaried one on equal footing.
One thing a raise calculator can't show you precisely is your take-home increase. A raise is figured on gross pay, but the extra income is taxed — so the amount that actually reaches your bank account is smaller than the headline figure. More on that below.
The formula & how we calculate it
Worked example (the defaults above):
- Current pay = $60,000/year, raise = 5%.
- Increase = 60,000 × 0.05 = $3,000 per year.
- New pay = 60,000 + 3,000 = $63,000 per year.
- Monthly increase = 3,000 ÷ 12 = $250 per month; new monthly pay = 63,000 ÷ 12 = $5,250.
- As an hourly rate that's 63,000 ÷ 2,080 ≈ $30.29/hour.
For a flat raise the math is even simpler: add the dollars to your current pay, then divide the raise by your old pay to express it as a percentage. A $3,000 flat raise on $60,000 lands at the same $63,000 — and a 5% increase.
What affects the value of your raise
- Inflation. A raise only grows your buying power if it beats inflation. A 3% raise in a year of 4% inflation is effectively a pay cut in real terms, even though the dollar figure rose.
- Taxes. A raise is calculated on gross pay, but the extra income is taxed. Thanks to marginal tax brackets, only the dollars above each threshold are taxed at the higher rate — so you always keep most of a raise, just not all of it.
- Percentage vs. flat. The same flat dollar raise is a bigger percentage for lower earners and a smaller percentage for higher earners. Compare offers on both measures.
- Hours worked. For hourly workers, a raise to the hourly rate only translates into more annual income if your hours hold steady. Fewer hours can erase a wage bump.
- Benefits & deductions. Some payroll deductions (like a percentage-based 401(k) contribution) scale with pay, so a slice of your raise may quietly route into savings rather than your paycheck.
What a raise is worth in dollars
A percentage raise sounds abstract until you see it in dollars. Annual value of common raises by salary (divide by 12 for the monthly boost — e.g., a 2.8% raise on $60,000 is $1,680/yr ≈ $140/mo):
| Raise | $40,000 | $60,000 | $80,000 | $100,000 |
|---|---|---|---|---|
| 2% | $800/yr | $1,200/yr | $1,600/yr | $2,000/yr |
| 2.8% | $1,120/yr | $1,680/yr | $2,240/yr | $2,800/yr |
| 3% | $1,200/yr | $1,800/yr | $2,400/yr | $3,000/yr |
| 4% | $1,600/yr | $2,400/yr | $3,200/yr | $4,000/yr |
| 5% | $2,000/yr | $3,000/yr | $4,000/yr | $5,000/yr |
Frequently asked questions
How do I calculate a pay raise?
For a percentage raise, multiply your current pay by the percentage and add it on. A 5% raise on $60,000 is $60,000 × 0.05 = $3,000, so your new salary is $63,000 — about $250 more per month. For a flat-dollar raise, just add the amount to your current pay. To turn a flat raise into a percentage, divide the raise by your old pay: a $3,000 raise on $60,000 is $3,000 ÷ $60,000 = 5%.
How much is a 3% raise?
A 3% raise adds 3% of your current pay. On a $50,000 salary that's $1,500 a year (about $125 a month), making the new salary $51,500. On $60,000 it's $1,800 a year ($150 a month), and on $40,000 it's $1,200 a year ($100 a month). Multiply your salary by 0.03 to get your own number.
Is a raise calculated before or after tax?
A raise is quoted and calculated on your gross (pre-tax) pay, and that's what this calculator shows. Your take-home increase will be smaller, because the extra income is taxed and may push part of your raise into a higher tax bracket. Only the dollars above each bracket threshold are taxed at the higher rate, so a raise always leaves you with more money in hand — just not the full headline amount.
What's a good annual raise?
A typical annual or cost-of-living raise runs about 3% in a normal year, roughly tracking inflation so your buying power holds steady. Merit raises for strong performers often land in the 4–5% range, while a promotion or a job change can bring 10–20% or more. If your raise is below inflation, your real pay is effectively shrinking even though the dollar figure went up.
How do I convert an hourly raise to an annual salary?
Multiply your new hourly rate by the hours you work per week and by 52 weeks. A standard full-time year is 40 hours × 52 weeks = 2,080 hours, so a $30/hour rate is about $62,400 a year. This calculator converts both ways, so you can enter an hourly wage and see the annual, monthly and weekly equivalents instantly.