How to use this pay raise calculator
- Enter your current pay as an annual salary or as an hourly wage with your weekly hours.
- Enter the raise as a percent or a dollar amount. Or switch to “Raise needed for a target” and enter the pay you want to reach.
- Pick your pay frequency to see the new amount per paycheck, then open “Taxes and inflation” to add your filing status and state, so the take-home gain reflects your situation.
- Check the inflation box. It starts at the 3.4% change in consumer prices over the 12 months to August 2026, from the Bureau of Labor Statistics. Change it to test other assumptions.
How to calculate a raise
Add the raise to your current pay. As a percentage, that means multiplying by 1 plus the raise expressed as a decimal; to turn a dollar raise into a percentage, divide it by your current pay.
New pay = current pay × (1 + raise). Raise = (new pay − current pay) ÷ current pay.
- N
- new pay (annual, hourly or per paycheck, as long as C uses the same unit)
- C
- current pay
- r
- the raise as a decimal (3% = 0.03)
Worked example
With a current salary of $60,000 and a 3% raise, N = $60,000 × 1.03 = $61,800. The raise is $1,800 a year. Paid every two weeks, each paycheck goes from $2,307.69 to $2,376.92 before tax, and the hourly equivalent at 40 hours a week goes from $28.85 to $29.71 (annual pay ÷ 2,080 hours).
A dollar raise works the same way. A $3,000 raise on $60,000 is $3,000 ÷ $60,000 = 5%, which brings pay to $63,000.
What percentage raise do I need to reach a target salary?
Flip the formula: the raise you need is the target divided by your current pay, minus 1. From $60,000 to $70,000, that is $70,000 ÷ $60,000 − 1 = 16.67%, or $10,000 more a year. Raises needed from $60,000 to some common targets:
| Target salary | Raise needed per year | Raise needed (%) |
|---|---|---|
| $65,000 | $5,000 | 8.33% |
| $70,000 | $10,000 | 16.67% |
| $75,000 | $15,000 | 25% |
| $80,000 | $20,000 | 33.33% |
| $90,000 | $30,000 | 50% |
| $100,000 | $40,000 | 66.67% |
New salary after a raise
New annual pay for common salaries and raise percentages, before taxes:
| Current salary | 2% | 3% | 4% | 5% | 7.5% | 10% |
|---|---|---|---|---|---|---|
| $30,000 | $30,600 | $30,900 | $31,200 | $31,500 | $32,250 | $33,000 |
| $40,000 | $40,800 | $41,200 | $41,600 | $42,000 | $43,000 | $44,000 |
| $50,000 | $51,000 | $51,500 | $52,000 | $52,500 | $53,750 | $55,000 |
| $60,000 | $61,200 | $61,800 | $62,400 | $63,000 | $64,500 | $66,000 |
| $70,000 | $71,400 | $72,100 | $72,800 | $73,500 | $75,250 | $77,000 |
| $80,000 | $81,600 | $82,400 | $83,200 | $84,000 | $86,000 | $88,000 |
| $90,000 | $91,800 | $92,700 | $93,600 | $94,500 | $96,750 | $99,000 |
| $100,000 | $102,000 | $103,000 | $104,000 | $105,000 | $107,500 | $110,000 |
| $125,000 | $127,500 | $128,750 | $130,000 | $131,250 | $134,375 | $137,500 |
| $150,000 | $153,000 | $154,500 | $156,000 | $157,500 | $161,250 | $165,000 |
Is your raise beating inflation?
A raise only adds buying power if it is bigger than the rise in prices. The Consumer Price Index measures the average change in prices that urban consumers pay. To find your real raise, divide one plus your raise by one plus inflation, then subtract 1:
Real raise = (1 + raise) ÷ (1 + inflation) − 1
- r
- your raise as a decimal
- i
- inflation over the same period, as a decimal
The Bureau of Labor Statistics reported that the CPI-U rose 3.4% over the 12 months to August 2026. Against that, a 3% raise is a real raise of -0.39%: your $61,800 would buy about $59,768 in the prices of a year earlier, $232 less than your current pay did. Keeping pace would take a raise of 3.4%, or $2,040 on $60,000.
For wage growth across the economy, the Employment Cost Index, which measures the change in the hourly labor cost to employers, showed wages and salaries for civilian workers up 3.2% over the 12 months ending June 2026 (Bureau of Labor Statistics). It is not a guide to what any one person should receive, because it tracks employer costs for a fixed mix of jobs, but it is a useful yardstick next to inflation. For price changes over longer periods, use the inflation calculator.
How much of a raise do you actually take home?
Federal income tax is progressive: your income is taxed in layers, and each layer has its own rate. The IRS puts it this way: when your income jumps to a higher tax bracket, you don’t pay the higher rate on your entire income, only on the part that’s in the new bracket. So moving into a higher bracket cannot, by itself, leave you with less take-home pay than before. See the 2026 tax brackets for the layers.
Here is how it plays out. A single filer earning $62,000 gets a 10% raise to $68,200. After the $16,100 standard deduction, taxable income rises from $45,900 to $52,100. The 12% bracket ends at $50,400, so $4,500 of the raise is taxed at 12% and only the last $1,700 at 22%. Federal income tax rises by $914, which is 14.7% of the raise, not 22%. Social Security and Medicare (employee rates of 6.2% and 1.45%, per the IRS) add $474, and the filer keeps about $4,812 of the $6,200.
A 3% raise at different salaries, for a single filer with no state income tax, paid every two weeks:
| Current salary | New salary | Raise per year | Raise per bi-weekly check | Extra take-home per check | Share kept |
|---|---|---|---|---|---|
| $40,000 | $41,200 | $1,200 | $46.15 | $37.08 | 80% |
| $50,000 | $51,500 | $1,500 | $57.69 | $46.36 | 80% |
| $60,000 | $61,800 | $1,800 | $69.23 | $55.63 | 80% |
| $75,000 | $77,250 | $2,250 | $86.54 | $60.88 | 70% |
| $100,000 | $103,000 | $3,000 | $115.38 | $81.17 | 70% |
| $150,000 | $154,500 | $4,500 | $173.08 | $118.30 | 68% |
Your state may tax the raise too. Choose it in the calculator, or compare your full paycheck before and after with the paycheck calculator. Extra pay above the Social Security wage base ($184,500 in 2026) is no longer subject to Social Security tax. For the tax on your whole income, try the income tax calculator.
How to ask for a raise
- Know the going rate. The Bureau of Labor Statistics publishes wage estimates for roughly 830 occupations, for the nation, for states and for metropolitan areas (its OEWS program). Compare them with job postings that list pay ranges for your role and location.
- Document what has changed. List new responsibilities, results and skills since your last raise, with dates and numbers where you can.
- Decide on a number first. Use this calculator’s target mode to turn a salary you want into a percentage, and check the real raise after inflation and the take-home gain so you know what you are asking for.
- Choose the moment. A scheduled review, or a conversation before budgets are set, gives your manager room to say yes. Ask for a meeting rather than raising it in passing.
- Keep the door open. If the answer is no, ask what would change it and when you can revisit. A bonus, extra time off, a title change or a retirement-plan match can also add value.
What this calculator does not cover
The after-tax figures model wages only: the 2026 federal brackets and standard deduction, employee Social Security and Medicare, and the state income tax you select. They leave out 401(k) contributions, health premiums, tax credits, local taxes and other income, so your actual change will differ. Income-based credits and benefits, which can shrink as income rises, are not modeled either. Employers also withhold from each paycheck using your Form W-4, so the amount on your pay stub can differ from a yearly estimate. The real-raise figure compares your raise with one inflation rate; your own costs, such as rent or health care, may rise faster or slower than prices overall. To convert between pay periods in more detail, use the salary calculator; to work out percentages generally, use the percentage calculator.
Frequently asked questions
How do I calculate a percentage raise?
Multiply your current pay by 1 plus the raise as a decimal. A 3% raise on $60,000 is $60,000 × 1.03 = $61,800, which is $1,800 more a year and $69.23 more per bi-weekly paycheck before tax. To find the raise you received, divide the increase by your old pay: ($61,800 − $60,000) ÷ $60,000 = 3%.
What percentage raise do I need to reach a target salary?
Divide the target by your current pay and subtract 1. Going from $60,000 to $70,000 takes $70,000 ÷ $60,000 − 1 = 16.67%, or $10,000 more a year. Choose “Raise needed for a target” in the calculator to do this for your own pay, including an hourly wage.
How much of my raise will I actually take home?
In our example you keep most of it: a $1,800 raise is reduced by $216 of federal income tax and $138 of Social Security and Medicare tax, so you keep about $1,446, or 80%. State income tax, 401(k) contributions and credits change the result, so choose your state in the calculator.
Will a raise push me into a higher tax bracket and lower my take-home pay?
No. Crossing into a higher bracket does not lower your take-home pay, because only the part of your income inside that bracket is taxed at its rate. The IRS says you don’t pay the higher rate on your entire income, only on the part in the new bracket. In our example, a 10% raise on $62,000 reaches the 22% bracket, yet take-home pay still rises by $4,812 a year.
How do I know if my raise is keeping up with inflation?
Compare your raise with inflation: a real raise is (1 + raise) ÷ (1 + inflation) − 1. The Bureau of Labor Statistics reported consumer prices up 3.4% over the 12 months to August 2026, so a 3% raise on $60,000 works out to -0.39% in real terms, about $232 a year of lost buying power. A raise of 3.4% would break even.
What is a good raise percentage?
There is no single right number; it depends on your performance, your market and your employer’s budget. Two benchmarks help: inflation, at 3.4% for the 12 months to August 2026 (Bureau of Labor Statistics), since a smaller raise lowers your buying power, and wage growth, with the Employment Cost Index showing civilian wages and salaries up 3.2% in the 12 months ending June 2026. That index tracks employer labor costs, not individual raises.
How do I calculate a raise for an hourly wage?
Multiply your hourly wage by 1 plus the raise percent, or add the dollar raise per hour. $30 an hour at 40 hours a week is $62,400 a year; a $1 an hour raise makes $31 an hour, or $64,480 a year, a 3.33% raise. Enter your wage and weekly hours in the calculator.