Example: $60,000 salary with a 5% raise
Raise amount = $60,000 × 5% = $3,000 / year
New salary = $60,000 + $3,000 = $63,000 / year
New monthly = $63,000 ÷ 12 = $5,250 / month
Tool 13 of 22
Pay raise calculator.
Enter your salary and raise percentage to see your new pay — broken down by year, month, week, and hour.
Salary entered as
Raise amount / year
—
New annual salary
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| Period | Current | New | Increase |
|---|
How to calculate a pay raise
To find your new salary after a raise, multiply your current salary by (1 + raise% ÷ 100). To find how much extra you earn, multiply your current salary by the raise percentage divided by 100.
New Salary = Current Salary × (1 + Raise% ÷ 100) Raise Amount = Current Salary × (Raise% ÷ 100)
Average pay raise by performance level
| Performance level | Typical raise range |
|---|---|
| Below expectations | 0–1% |
| Meets expectations | 2–3% |
| Exceeds expectations | 4–6% |
| Outstanding / high performer | 7–10% |
| Promotion | 10–20%+ |
| Job change / new offer | 10–30%+ |
How to calculate a pay raise
Whether you've just received a raise, you're negotiating a new salary, or you're budgeting for your team, knowing how to calculate a pay raise is essential. This calculator helps you find your new salary from a raise percentage, determine what percentage raise you received, and break the numbers down into monthly, biweekly, weekly, and hourly amounts.
The pay raise formulas
New Salary = Current Salary × (1 + Raise% ÷ 100)
Raise % = ((New Salary − Current Salary) ÷ Current Salary) × 100
A 5% raise on a $65,000 salary: $65,000 × 1.05 = $68,250. That's $3,250 more per year, or about $270.83 more per month.
Salary breakdown by pay period
Converting an annual salary to different pay periods helps you understand the real impact of a raise on your take-home pay:
- Monthly: Annual ÷ 12
- Biweekly: Annual ÷ 26 (26 pay periods per year)
- Weekly: Annual ÷ 52
- Hourly: Annual ÷ 2,080 (40 hours × 52 weeks)
For example, a $70,000 salary breaks down to $5,833/month, $2,692/biweekly, $1,346/week, or $33.65/hour.
What is a typical raise?
- 2–3%: Cost-of-living adjustment. Keeps pace with inflation but doesn't grow your real earnings.
- 3–5%: Standard merit raise. The most common annual increase for solid performance.
- 5–10%: Above average. Often accompanies a strong performance review, expanded responsibilities, or a market adjustment.
- 10–20%: Significant. Usually tied to a promotion, a competing job offer, or a major skills upgrade.
- 20%+: Exceptional. Typically reserved for role changes, retention counter-offers, or major career transitions.
Raises and inflation
A raise that matches inflation keeps your purchasing power the same — you're not actually earning "more" in real terms. If inflation is 4% and you get a 3% raise, your real earning power has decreased by about 1%. When evaluating a raise offer, always compare the percentage to the current inflation rate to understand whether your standard of living is improving, holding steady, or declining.
Negotiation tips
- Know the market rate: Research salaries for your role, experience level, and location before negotiating.
- Focus on total compensation: Benefits, bonuses, equity, PTO, and retirement matching can be worth as much as a salary bump.
- Quantify your value: Frame your ask around revenue generated, costs saved, or measurable results delivered.
- Time it right: Performance reviews, after completing a big project, or when the company is doing well financially.
Frequently asked questions.
How do I calculate a pay raise?
New Salary = Current Salary × (1 + Raise% ÷ 100). For a 5% raise on $60,000: $60,000 × 1.05 = $63,000. The raise amount is $63,000 − $60,000 = $3,000 per year.
How much is a 3% raise on $50,000?
Raise amount = $50,000 × 3% = $1,500 per year. New annual salary = $51,500. Monthly: $4,291.67. Hourly (40hr week): $24.76.
What is a good pay raise percentage?
A raise that keeps pace with inflation (typically 3–4%) is considered standard. Merit raises of 5–7% are above average. A 10%+ raise usually reflects a promotion or a competing offer. In 2024, average US salary increases were approximately 4–5%.
Is a 10% raise good?
Yes — a 10% raise is well above average. Most companies budget 3–5% for annual salary increases. A 10% raise typically signals a promotion, a strong performance review, or a counter-offer negotiation.
How do I find the raise percentage from my old and new salary?
Raise % = (New Salary − Current Salary) ÷ Current Salary × 100. Example: going from $50,000 to $54,000 = ($54,000 − $50,000) ÷ $50,000 × 100 = 8% raise.
What is a cost-of-living raise?
A cost-of-living adjustment (COLA) is a salary increase tied to inflation rather than individual performance. It is intended to maintain your purchasing power as prices rise. In the US, COLA raises are typically 2–5% per year.
How do I convert an annual salary to hourly?
Hourly rate = Annual salary ÷ 2,080 (assuming 40 hours per week × 52 weeks). For $60,000 per year: $60,000 ÷ 2,080 = $28.85 per hour.
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