How to use this calculator
Enter your current annual salary or hourly rate in the first field. Then choose whether to input your raise as a percentage or a flat dollar amount. If you enter a percentage, the calculator converts it to dollars. If you enter a dollar amount, it converts to a percentage for easy comparison.
Select your pay frequency (weekly, biweekly, semi monthly, or monthly) to see how the raise breaks down per paycheck. The calculator shows your new salary, the per paycheck increase, and the total annual dollar impact of the raise.
Check the inflation comparison at the bottom of the results. This section shows whether your raise outpaces the current inflation rate, which tells you if your real purchasing power is growing or shrinking. A raise that falls below inflation means you can actually buy less than before, even though your number is higher.
Understanding your raise
A raise feels good, but context matters. If inflation is running at 4% and you receive a 3% raise, your real purchasing power has actually declined. This calculator helps you see the full picture by comparing your raise to current inflation.
When evaluating a raise, look at both the percentage and the dollar amount. A 5% raise on a $50,000 salary adds $2,500 per year or about $96 per biweekly paycheck. On a $100,000 salary, that same 5% is $5,000 per year or $192 per paycheck.
Frequently asked questions
What is a good raise percentage?
The average annual raise in the US is 3% to 5%. A raise above 5% is considered strong performance based. Anything below 3% may not keep pace with inflation. Promotions typically carry 10% to 20% increases.
How often should you get a raise?
Most employers review compensation annually. At minimum, expect an inflation adjustment each year. If your role has expanded or you have taken on significant new responsibilities, it is reasonable to request a raise outside the normal review cycle.
Raise vs. promotion
A raise increases pay in the same role (3% to 5% typical). A promotion changes your role, title, and responsibilities with a larger increase (10% to 20%). Both are important for long-term career earnings growth.
How to calculate a raise on hourly wages
Multiply your hourly rate by the raise percentage. For a 4% raise on $25/hour: $25 x 0.04 = $1.00 increase, so your new rate is $26/hour. Over a full year at 40 hours per week, that adds $2,080 to your annual income.