How the raise calculator works
A pay raise is either a percentage of your current pay or a fixed amount. For a percentage raise, the calculator multiplies your current pay by 1 plus the raise as a decimal: $25 an hour with a 5% raise is 25 × 1.05 = $26.25 an hour. For a flat raise it simply adds the amount. Then it converts the old and the new pay into every period through the yearly total, so you see the new salary per hour, week, paycheck, month and year side by side.
The calculator assumes 52 paid weeks a year, which includes paid vacation and holidays. A biweekly schedule has 26 paychecks, a semimonthly schedule 24 and a monthly schedule 12. If you take unpaid weeks off, the salary converter lets you set your paid weeks. The raise in percent is the same either way.
Raises on a $50,000 salary
Gross amounts before taxes, with 26 biweekly paychecks a year. Change the salary and the percentage in the calculator to see your own numbers.
| Raise | New annual salary | More per year | More per month | More per paycheck |
|---|---|---|---|---|
| 2% | $51,000 | $1,000 | $83.33 | $38.46 |
| 3% | $51,500 | $1,500 | $125.00 | $57.69 |
| 4% | $52,000 | $2,000 | $166.67 | $76.92 |
| 5% | $52,500 | $2,500 | $208.33 | $96.15 |
| 6% | $53,000 | $3,000 | $250.00 | $115.38 |
| 8% | $54,000 | $4,000 | $333.33 | $153.85 |
| 10% | $55,000 | $5,000 | $416.67 | $192.31 |
| 15% | $57,500 | $7,500 | $625.00 | $288.46 |
Percent raise vs. flat raise
A flat raise gives everyone the same amount, while a percentage raise grows with your pay. That means the same flat raise is worth a smaller percentage the more you already earn. Over a full-time year of 2,080 hours, $1 more an hour adds $2,080 to your annual pay at any wage.
| Hourly wage | $1 an hour raise in percent |
|---|---|
| $15.00 | 6.67% |
| $20.00 | 5% |
| $25.00 | 4% |
| $30.00 | 3.33% |
| $40.00 | 2.5% |
| $60.00 | 1.67% |
If you are choosing between two offers, enter one as a percent and the other as an amount and compare the yearly difference. Switching between Percent and Amount in the calculator converts your raise, so you can see a 4% raise as an hourly or yearly amount and the other way around.
Working out the raise you need
Sometimes you start with a number in mind: the hourly wage a new job pays, the salary that covers your rent, or the pay a colleague in the same role earns. Pick "Raise for a target pay", enter your current pay and the target in the same period, and the calculator shows the raise in percent and as an amount per hour, paycheck, month and year. That makes it easier to prepare a request: you know both the percentage and what it means on each paycheck.
If the target is lower than your current pay, the result says so and shows the cut in percent instead of a raise.
What your raise is worth after inflation
A raise only increases what you can buy if your pay grows faster than prices. Your real raise compares the two: (1 + raise) ÷ (1 + inflation) − 1. A 5% raise with 3% inflation is a real raise of 1.94%. The quick shortcut of subtracting the rates, 5 − 3 = 2%, is close for small rates, but the division is exact.
The calculator does not assume an inflation rate. Enter the rate you expect for the year ahead if you want to include it, and leave the field empty otherwise. In the US, the Bureau of Labor Statistics tracks price changes with the Consumer Price Index. To see how prices changed in the past, or what an old salary is worth in today's money, use the inflation calculator.
Raises add up over the years
Each new raise is taken from pay that already includes the raises before it, so repeated raises compound. Five raises of 3% in a row add 15.93% to your pay, not 15%. Five raises of 5% add 27.63%. The same effect works against you when raises are skipped: a year without a raise lowers every later raise too, because the base stays smaller.
Gross raise vs. take-home pay
All amounts here are gross pay. What reaches your bank account is lower after income tax, Social Security, Medicare and deductions like health insurance or a 401(k). A raise does not mean all of your income is taxed at a higher rate: as the IRS explains, when income moves into a higher bracket, only the part inside the new bracket pays the higher rate. To estimate what your new paycheck looks like after taxes, enter the new pay in the paycheck calculator.
How to use the raise calculator
- 1Choose "New pay" to apply a raise, or "Raise for a target pay" to find the raise you need.
- 2Enter your current pay and pick whether it is hourly, weekly, every two weeks, monthly or annual. Check your hours per week and how often you get paid.
- 3Enter the raise as a percent or an amount, or enter your target pay. Add an inflation rate if you want to see your real raise.
- 4Read your new pay, the difference per paycheck, month and year, and the table for every period. Copy the result or a link to keep it.
Frequently asked questions
How do I calculate a raise percentage?
Subtract your old pay from your new pay, divide by your old pay and multiply by 100. Going from $25.00 to $27.00 an hour is (27 − 25) ÷ 25 × 100 = an 8% raise. Use the same period for both numbers, for example both hourly or both yearly.
How much is a 5% raise on a $50,000 salary?
It adds $2,500 a year, so the new salary is $52,500. Spread over the year that is $208.33 more a month, or $96.15 more on each of 26 biweekly paychecks, before taxes.
How do I turn a yearly raise into an hourly raise?
Divide the yearly amount by the hours you are paid in a year. A full-time year of 40 hours a week for 52 weeks has 2,080 hours, so a raise of $2,080 a year is $1 an hour, and $5,000 a year is about $2.40 an hour.
Will a raise push all my income into a higher tax bracket?
No. US federal income tax is charged in layers. If a raise moves part of your income into a higher bracket, the IRS explains that only the part inside the new bracket is taxed at the higher rate, not your whole income. Your take-home pay still goes up, just by less than the gross raise.
What is a real raise?
A real raise is your raise after inflation. If your pay rises 5% while prices rise 3%, your pay buys about 1.94% more, because (1.05 ÷ 1.03 − 1) × 100 = 1.94. Enter an inflation rate you expect in the optional field to see it. If prices rise faster than your pay, the real raise is negative.
Are the results before or after taxes?
Before taxes. The calculator shows gross pay. Income tax, Social Security, Medicare and deductions like health insurance or retirement contributions come out of both your old and your new pay, so the raise you see on your bank statement is smaller.
Is a percentage raise or a flat raise better?
Compare them in money, not in words. A flat $1 an hour raise is 6.67% at $15 an hour but only 2.5% at $40 an hour. Enter both offers in the calculator, one as a percent and one as an amount, and compare the yearly difference.