Pay Raise Calculator — Salary Increase & Real Raise
Solve for new salary, raise percentage, or dollar increase. See the per-paycheck impact and your real raise after inflation.
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Full bio →New Salary = Old Salary × (1 + Raise%). Real raise = ((1 + Raise%) ÷ (1 + Inflation%) − 1) × 100 — this tells you whether your raise actually increases purchasing power or just keeps up with (or falls behind) rising prices. Figures shown are gross (pre-tax) amounts; actual take-home increase will be lower after taxes and any percentage-based deductions.
Reference Values
Last verified:| Category | Range | What It Means | Status |
|---|---|---|---|
| Below Inflation | Raise % less than current inflation rate | Take-home pay is up, but purchasing power is actually down — a nominal raise that's a real-terms pay cut. | Poor |
| Cost-of-Living Adjustment | Roughly matches inflation (often 2–4%) | Keeps purchasing power flat — you're earning the same real income as before, just in higher nominal dollars. | Okay |
| Merit / Above-Average Raise | Typically 4–7% | Outpaces typical cost-of-living adjustments — genuine growth in purchasing power, often tied to performance review cycles. | Good |
| Promotion / Market Adjustment ★ | 8%+ (often 10–20% for promotions) | Substantial increase usually tied to a role change, market correction, or counteroffer — well above typical annual merit increase ranges. | ★ Best |
Source: General compensation benchmarking context — actual typical raise percentages vary by year, industry, and macroeconomic conditions; compare your raise % against current published inflation data for an accurate 'real raise' assessment
Worked Examples
Solve for New Salary: $60,000 + 5% Raise
- Old Salary
- $60,000
- Raise
- 5%
$60,000 × 1.05 = $63,000. That's $3,000 more per year, or $250 more per month before tax.
Solve for Raise %: $50,000 → $54,000
- Old Salary
- $50,000
- New Salary
- $54,000
($54,000 − $50,000) ÷ $50,000 × 100 = 8.0% — well above a typical cost-of-living adjustment.
Solve for Raise %: $70,000 + $2,100 Increase
- Old Salary
- $70,000
- Dollar Increase
- $2,100
$2,100 ÷ $70,000 × 100 = 3.0%. Close to a typical cost-of-living range depending on current inflation.
Real Raise After Inflation: 3% Raise, 4% Inflation
- Nominal Raise
- 3%
- Inflation Rate
- 4%
((1.03 ÷ 1.04) − 1) × 100 = −0.96%. Despite a positive nominal raise, purchasing power actually declined slightly since inflation outpaced the raise.
How to Use This Calculator
- 1
Choose what you already know
Select old salary + raise %, old + new salary, or old salary + a specific dollar increase.
- 2
Enter your values
Input fields adjust based on your selection above.
- 3
Optionally add an inflation rate
Enter a current or expected inflation rate to see your 'real' raise — whether your purchasing power actually grew.
- 4
Review per-paycheck impact
Results break the annual increase down into weekly, bi-weekly, semi-monthly, and monthly amounts.
What Each Value Means
- Raise Percentage (percent (%))
- The percentage increase from old to new salary: ((New − Old) ÷ Old) × 100. The standard way raises are typically communicated by employers, regardless of the actual dollar amount.
- Real Raise (percent (%))
- The raise percentage adjusted for inflation, showing actual change in purchasing power rather than just the nominal dollar/percentage increase. Calculated as ((1 + Raise%) ÷ (1 + Inflation%) − 1) × 100.