How do I calculate my new salary after a raise?

Multiply your current salary by (1 + raise%/100). For example, a $50,000 salary with a 5% raise becomes $50,000 × 1.05 = $52,500.

What is a good raise percentage?

A typical annual raise in the U.S. ranges from 3–5%. Raises matching or exceeding inflation (currently 3–4%) maintain purchasing power. Merit-based raises of 5–10% are considered strong.

Salary Raise Calculator — New Pay After a Raise (% or Dollar)

How to Calculate a Salary Raise

A salary raise increases your compensation either by a fixed percentage of your current pay or by a specific dollar amount. Most employers express raises as percentages because they scale proportionally with existing pay levels and are easier to compare across different salary bands.

Raise Calculation Formulas

Percentage Raise: New Salary = Current Salary × (1 + Raise% ÷ 100) Annual Increase = New Salary − Current Salary Dollar Raise: New Salary = Current Salary + Raise Amount Raise % = (Raise Amount ÷ Current Salary) × 100 Reverse (find % needed): Required Raise % = ((Target Salary − Current Salary) ÷ Current Salary) × 100 Hourly Change: Annual Hours = Hours/Week × 52 New Hourly = New Salary ÷ Annual Hours Old Hourly = Current Salary ÷ Annual Hours

What Is a Good Raise?

A raise that simply matches the inflation rate (typically 3–4%) keeps your purchasing power flat. Any raise above inflation represents a real increase in buying power. According to the Bureau of Labor Statistics, the average annual wage increase in the U.S. has ranged from 3–5% in recent years. High-performing employees in competitive markets can negotiate 7–15% raises, especially when switching roles or companies. A promotion typically comes with a 10–20% salary bump.

When to Negotiate a Raise

The best times to negotiate a raise include: after completing a significant project, during annual performance reviews, when taking on new responsibilities, or when a competing offer is in hand. Research market salary data for your role, location, and experience level using sources like the Bureau of Labor Statistics Occupational Employment Statistics, LinkedIn Salary, or Glassdoor before your conversation.

Raise vs. Promotion

Type	Typical % Increase	Notes
Cost-of-Living (COLA)	2–4%	Matches inflation, maintains purchasing power
Merit Raise	3–7%	Based on performance review
Promotion	10–20%	New title and expanded responsibilities
Job Change	10–30%	Moving to a new employer
Market Adjustment	Varies	Corrects below-market compensation

Frequently Asked Questions

How do I calculate a 5% raise?+

Multiply your current salary by 1.05. For example: $60,000 × 1.05 = $63,000. Your raise is $3,000 per year, or $250 per month.

How much is a 3% raise on $50,000?+

A 3% raise on $50,000 adds $1,500 per year, bringing your salary to $51,500. Monthly that is $125 more. At 40 hours/week, it adds about $0.72/hour.

What raise % should I ask for?+

Ask for 10–20% more than you are willing to accept to leave room for negotiation. Research your market rate first. If you have a competing offer, share the number (politely) to anchor the negotiation.

Is a raise the same as a bonus?+

No. A raise permanently increases your base salary and compounds over time. A bonus is a one-time payment that does not change your base pay. Raises have more long-term value because future raises and benefits are often calculated as a percentage of base salary.

Raise Calculator