Free Pay Raise Calculator
Enter your current pay and raise amount to see exactly how much more you'll earn per paycheck, per month, and per year.
Pay Type
Current Pay
Raise Amount
These are gross pay increases. Actual take-home will be lower after taxes.
See Your Actual Take-Home Pay
Know your raise amount? Use Pay44 to calculate your exact take-home pay after federal and state taxes.
How Pay Raises Work in the U.S.
The average pay raise in the U.S. sits around 3% to 5% per year, according to the Bureau of Labor Statistics. That sounds decent until you factor in inflation. In years when inflation runs at 3.5% or higher, a 3% raise actually means you're making less in real terms. Your number goes up, but your purchasing power goes down.
Percentage vs. Dollar Raises
Most employers give raises as a percentage. A 5% bump on a $50,000 salary adds $2,500 per year — about $96 extra per biweekly paycheck before taxes. Dollar-amount raises are more common for hourly workers. A $1.50/hr raise at 40 hours per week works out to $3,120 annually. The math is straightforward: multiply the hourly increase by your weekly hours, then by 52.
What Actually Hits Your Bank Account
Here's the part that stings. A $5,000 annual raise doesn't put $5,000 more in your pocket. Federal income tax takes a cut based on your marginal bracket — somewhere between 12% and 37% for most workers. Then add 6.2% for Social Security (up to the $176,100 wage base in 2026), 1.45% for Medicare, and state income tax if your state has one. A $5,000 raise for someone in the 22% federal bracket living in a state with 5% income tax? Roughly $3,300 actually reaches your bank account.
Negotiation Numbers That Matter
When negotiating a raise, know your market rate. The BLS Occupational Outlook Handbook publishes median pay for over 800 occupations. Glassdoor and Levels.fyi track real salary data by company and role. Coming to the table with specific numbers — not just "I deserve more" — changes the conversation. For reference, promotion raises average 10% to 15%, while lateral moves to a new company often yield 15% to 25%.
When to Ask and How Often
Most companies review compensation annually, usually tied to fiscal year or calendar year cycles. Asking mid-cycle works too, especially after shipping a big project or taking on new responsibilities. Don't wait for the annual review if you're underpaid now — the sooner you fix it, the more you earn over time thanks to compounding. Every raise builds on the last one.
Frequently Asked Questions
Common questions about pay raises and salary increases
What is a good pay raise percentage?
3% to 5% is typical for annual merit raises in the U.S. Anything above 5% is considered strong. Promotions usually come with 10% to 15%, and switching companies often yields 15% to 25%. Below 3% may not keep pace with inflation.
How do I calculate a 5% raise on my salary?
Multiply your current salary by 0.05. On a $60,000 salary, that's $3,000 per year or about $115 more per biweekly paycheck before taxes. Add $3,000 to your current salary for your new total: $63,000.
How much of my raise will I actually take home?
Expect to keep 60% to 75% of your raise after federal income tax, state tax, Social Security (6.2%), and Medicare (1.45%). The exact amount depends on your tax bracket and state. Someone in the 22% federal bracket in Texas keeps more than someone in the same bracket in California.
Should I negotiate for a percentage or dollar amount?
Percentage works better for higher salaries since the dollar value scales up. A 5% raise on $100K is $5,000, but on $40K it's only $2,000. For hourly workers, dollar amounts are more straightforward — ask for a specific $/hr increase based on market rates for your role.
How often should I ask for a raise?
Once per year is standard, usually during annual reviews. You can ask sooner if your responsibilities changed significantly, you earned a certification, or market rates for your role jumped. Avoid asking more than twice in a 12-month period — it can signal impatience rather than merit.
Does a raise push me into a higher tax bracket?
Only the portion of income above the bracket threshold gets taxed at the higher rate. The U.S. uses progressive brackets, so a raise never results in less take-home pay. If your raise pushes you from the 22% into the 24% bracket, only the dollars above $103,350 (single, 2026) are taxed at 24%.
What's the difference between a raise and a cost-of-living adjustment?
A cost-of-living adjustment (COLA) matches inflation so your purchasing power stays flat — it's not a real raise. A merit raise goes beyond inflation and actually increases what you can buy. If inflation is 3% and you get 3%, you broke even. You need more than 3% to actually get ahead.
Need More Than a Quick Calculation?
The full app tracks your full paycheck all year — overtime, bonuses, deductions, and 50-state taxes built in.