UtilibyWritten by the Utiliby editorial team · Last updated October 17, 2026 · Rules and formulas reviewed October 2026
What this free pay raise calculator does
A pay rise is only worth as much as it buys. A pay raise calculator tells you your new salary, how much extra you earn per year, month, week and hour, and whether the raise really beats inflation. This free online tool accepts your pay as hourly, weekly, monthly or annual, and your raise as a percent, an amount or a new pay figure, so it fits whichever way your employer put the offer.
It then goes further than most raise calculators. It works out the real raise after inflation and the buying power of your new pay, and shows the extra take-home using a flat tax estimate. A second tab calculates the raise needed to match inflation or hit a target salary, and an ask ladder compares raises from 3 to 20 percent for negotiations. A third tab projects yearly raises over time against inflation with a chart. Everything runs in your browser.
How to use the pay raise calculator
- Enter your current pay and how often you are paid.
- Choose how the raise is given: a percent, an amount per pay period or a new pay figure.
- Set inflation for the year to see the real raise.
- Add a flat tax percentage to see the extra take-home pay.
- Use the second tab for the raise needed to keep up or reach a target.
- Use the third tab to project yearly raises.
The pay raise formulas
The new pay is current pay times (1 plus the raise percent). A 4 percent raise on $60,000 adds $2,400 and gives $62,400, which is $5,200 a month. The percentage raise from two pay figures is the new pay divided by the old pay, minus 1. Moving from $60,000 to $70,000 is a 16.67 percent increase. For hourly pay, the same percent applies: from $25 to $27.50 is 10 percent.
| Current pay | Raise | New pay | Extra per month |
|---|---|---|---|
| $40,000 | 3% | $41,200 | $100 |
| $60,000 | 4% | $62,400 | $200 |
| $60,000 | 10% | $66,000 | $500 |
| $80,000 | 5% | $84,000 | $333 |
| $25/hour | 10% | $27.50/hour | $433 |
Real raise: what inflation does to your pay
Inflation reduces what each dollar buys. To judge a raise, compare it with inflation by dividing growth factors: (1 + raise) divided by (1 + inflation), minus 1. A 4 percent raise with 3 percent inflation is 1.04 / 1.03 - 1 = 0.97 percent, so your buying power rises by under 1 percent. The new $62,400 buys the same as $60,583 today. If the raise is below inflation, say 2 percent against 3 percent, your pay rises in number but your buying power falls by about 1 percent. Use an inflation figure that reflects your cost of living, which may differ from the headline rate.
How much raise do you need?
The simplest benchmark is inflation. To keep the same buying power at 3 percent inflation you need a 3 percent raise, which on $60,000 is $1,800. To reach a target such as $70,000 you need 16.67 percent. The ask ladder shows what raises of 3, 5, 8, 10, 15 and 20 percent mean in dollars and in real terms, which helps you pick a number for a review or negotiation. A well-researched figure supported by market data and your results is usually more persuasive than a round number.
Compounding raises over the years
Yearly raises build on each other. At 3 percent a year, $60,000 becomes $69,556 after five years, a gain of $9,556, and about $80,635 after ten, a rise of 34.4 percent. If inflation also runs at 3 percent, your real pay stays flat, which shows why raises equal to inflation do not make you better off. The projection tab charts nominal pay, pay in today's money and the buying power of unchanged pay.
Negotiating a raise
- Know your market value using salary surveys and job postings.
- List your results and what you have taken on since your last review.
- Choose a number and a range, and know your walk-away point.
- Consider the total package: bonus, extra leave, flexibility and training.
- Time it well, such as before budgets are set or after a clear win.
Accuracy, privacy and responsible use
The calculator uses the percentages and inflation rate you enter. Inflation varies by person and place, and future inflation is unknown. A flat tax estimate is a simplification. The tool does not include bonuses, overtime, benefits or progressive tax. It is not employment or financial advice. Nothing you enter leaves your browser.
Related free tools
Use these free online tools together with this one:
- Convert your new rate to annual pay with the hourly to salary calculator.
- Check any percent change with the percentage calculator.
- See what saving your raise could grow to with the compound interest calculator.
- Plan how to use the extra income with the budget planner calculator.
- Plan cash for a new venture with the startup runway calculator.
Frequently asked questions
How do I calculate a pay raise?
Multiply your current pay by the raise percent divided by 100 and add it. A 4% raise on $60,000 is 60,000 x 0.04 = $2,400, giving $62,400.
How do I calculate the percentage raise from old and new pay?
Divide the new pay by the old pay, subtract 1 and multiply by 100. From $60,000 to $70,000 is 70,000 / 60,000 - 1 = 16.67%.
How much is my raise per month, week and hour?
Divide the extra annual pay by 12 for months, by your paid weeks for weeks, and by the hours worked in the year for the hourly figure. A $2,400 raise is $200 a month, about $46 a week and $1.15 an hour.
What is a real raise?
A raise adjusted for inflation. It shows the change in your buying power. A 4% raise with 3% inflation is a real raise of (1.04 / 1.03) - 1 = 0.97%.
What raise do I need to keep up with inflation?
At least the inflation rate. At 3% inflation you need a 3% raise just to keep the same buying power, which on $60,000 is $1,800 a year.
Is a raise below inflation a pay cut?
In real terms yes. Your pay rises in number but buys less. A 2% raise at 3% inflation reduces buying power by about 0.97%.
What is a good raise percentage?
Typical annual merit raises are often around 3 to 5 percent in many surveys, with higher figures for promotions or job changes. It varies by industry, role, performance and the economy.
How much should I ask for in a raise?
Research market pay for your role, note your results, and compare asks with the ask ladder. Asking for a figure backed by evidence tends to work better than a round percentage.
How does a raise affect take-home pay?
Taxes rise with income, so the take-home gain is smaller. Enter a flat tax estimate to see an approximate monthly increase, and use a payroll tax calculator for exact figures.
Can I enter an hourly raise?
Yes. Choose per hour as the pay period, then enter the raise as a percent, an amount per hour or the new hourly rate. The tool converts using your hours and weeks.
What if my raise is a fixed amount, not a percent?
Choose Amount per pay period. A $2 an hour raise on a $25 wage is 8%.
How do repeated raises add up?
They compound. Three percent a year for ten years on $60,000 reaches about $80,635, a 34.4% total rise. The projection tab shows it.
How do I know what my new salary is in today's money?
Divide the new pay by (1 + inflation). The tool shows the buying power of your new pay.
How often should I ask for a raise?
Many people review pay once a year, at an annual review, or when responsibilities change. Asking after a clear achievement or a market pay change can also work.
Does this include bonuses, overtime or benefits?
No. It looks only at base pay. Add the value of bonuses and benefits separately when comparing total compensation.
Is my data stored or sent anywhere?
No. Everything runs in your browser.
Is this pay raise calculator free?
Yes. It is free to use online with no sign-up.
Sources and further reading
- U.S. Bureau of Labor Statistics, Consumer Price Index.
- U.S. Bureau of Labor Statistics, Employment Cost Index.
- Office for National Statistics, Inflation and price indices.
- Investopedia, Real income.
Sources were consulted in October 2026. Standards and rules can change, so always check the official page for your situation.