Pay Raise Calculator
A 3% raise sounds small and a 10% raise sounds big — this calculator shows what either means in dollars per year, per month, and per paycheck, so you can evaluate any offer or negotiation.
How this calculator works
The raise is applied as a straight percentage of your current base salary. A 5% raise on $60,000 adds $3,000 a year — $250 a month, or about $115 per biweekly paycheck before taxes. The calculator shows the new salary plus the increase broken down per month and per biweekly check so you can compare against your actual pay stub.
Frequently asked questions
What is a typical annual raise?
Budgeted merit increases in the US have averaged roughly 3–4% in recent years, with inflation-adjusted 'real' raises often near zero. Raises above 5% are usually tied to promotions, job changes, or strong performance — which is why switching jobs still tends to outpace annual merit bumps.
Should I ask for a raise based on inflation?
Inflation tells you how much your purchasing power is shrinking, so it is a fair baseline to cite — a 3% cost-of-living adjustment merely keeps your real pay flat. Frame your ask with market data for your role and your measurable contributions, not just the inflation number.
Is a raise taxed differently than regular pay?
No — a raise is ordinary income taxed at your normal marginal rate; only the year-over-year increase pushes you into a higher bracket if it crosses a threshold, and even then only the portion above the threshold is taxed at the new rate. Your take-home increase is the raise minus federal, state, and FICA withholding.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.