Pay Raise Calculator
Built & reviewed by Nandu Kannan · Overtime rules cited to primary statutes
See exactly what a raise is worth. Enter your current hourly rate or annual salary, then the raise as a percentage or as the new amount — get your new pay, the percent change, and the extra dollars per hour, week, month and year.
Gross amounts before taxes and deductions. General information, not payroll advice.
The formulas
New pay = current pay × (1 + raise% ÷ 100)
Raise % = (new pay − current pay) ÷ current pay × 100
A 5% raise on $20.00/hour is $21.00/hour — at full-time hours that is
$2,080 more per year before taxes.
Frequently asked questions
How do I calculate my raise as a percentage?
Subtract the old pay from the new pay, divide by the old pay, then multiply by 100. Example: going from $20.00 to $21.50 an hour is (21.50 − 20.00) ÷ 20.00 × 100 = 7.5%. The same formula works on salaries: $60,000 to $63,000 is a 5% raise.
What is the average pay raise in 2026?
US salary-budget surveys put typical merit increases around 3–4% for 2026, with total increase budgets (merit plus promotions and adjustments) slightly higher. Top performers and people switching jobs commonly see considerably more — job switchers often beat internal raises by several points.
Is a 3% raise good with inflation?
It depends on the inflation rate that year. If prices rise 3% and your pay rises 3%, your real (inflation-adjusted) pay is flat. A raise only increases your buying power when it beats inflation — which is why comparing your raise percentage to the current CPI figure matters more than the dollar amount.
How much is a $1 an hour raise per year?
At full-time hours (40 a week, 52 weeks), $1 more per hour is $2,080 more per year before taxes — about $173 a month or $80 per biweekly paycheck. Use the calculator above with your actual hours for an exact figure.
How do I negotiate a raise?
Anchor on evidence: document your results, pull market pay data for your role and area, and ask for a specific number slightly above your target. Time the ask around review cycles or after a clear win. If the budget is fixed, negotiate alternatives — title, bonus, PTO or remote flexibility — and get a follow-up date in writing.
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