Salary Increase Calculator

Multiply your current salary by 1 plus the raise percentage as a decimal. A 5% raise on $60,000 is $60,000 × 1.05 = $63,000.

Less than the headline number, because the extra income is taxed at your top rate rather than your average one. On a $60,000 salary filing as Single, a 5% raise adds $3,000 gross but only $2,410.50 in take-home pay for 2026 before any state tax. That is 80.35% of the raise kept. The $589.50 difference is 12% federal income tax plus 7.65% for Social Security and Medicare. Add a state and the share drops again: the same raise in California leaves $2,173.50, or 72.45%.

The percentage math is the same as for a salary, because the hours cancel out. An hourly worker going from $25.00 to $27.50 has a ($2.50 / $25.00) × 100 = 10% raise. Switch the calculator to hourly and it annualises the rate for you at your hours per week, so $25.00 an hour over a 40-hour week becomes $52,000 a year and the new rate becomes $57,200.

Yes. A percentage raise applies the same multiplier no matter which pay period you quote it in, so 10% on your hourly rate is also 10% on your weekly, monthly and annual pay. Dollar amounts are where the confusion starts. A $2.50 raise means something very different per hour than it does per month, which is why the calculator labels the amount field with the basis you picked.

Compare your raise percentage against the 12-month change in the Consumer Price Index. If prices rose faster than your pay, your buying power fell even though your salary went up. The calculator pulls the current CPI-U figure live from the Bureau of Labor Statistics and works out the real change for you. Note that the two numbers divide rather than subtract: a 5% raise against 3.36% inflation leaves you 1.59% better off, not 1.64%.

Typical annual raises in the US run about 3% to 5%. Where yours sits in that band usually comes down to what kind of raise it is. A cost-of-living adjustment tracks inflation and roughly keeps you level, while a merit raise is meant to sit above inflation and reward performance. Promotions work differently again, often landing at 10% or more because the role itself changed.

A cost-of-living adjustment, or COLA, is tied to inflation and applies across a group of staff regardless of individual performance. Its job is to stop your pay falling behind prices. A merit raise is tied to your own performance review and is meant to improve your position in real terms. A 3% raise in a year when inflation ran at 3.36% is doing the first job and not the second, which the calculator will show as a small negative in real buying power.

A pay increase calculator works out your new pay and the size of a raise, from a percentage, a dollar amount, or a new pay figure. Enter your current salary or hourly rate and it handles the math, including what the change looks like per paycheck, what survives federal tax, and whether the raise keeps pace with inflation.

Multiply your current salary by 1.03. On a $50,000 salary, a 3% raise works out to $50,000 × 1.03 = $51,500, a $1,500 increase for the year.

Compare the gross pay on your old and new pay stubs for the same pay period, then multiply the difference by the number of pay periods in a year to get your annual raise. Divide that dollar increase by your old annual salary and multiply by 100 for the percentage. Use gross pay rather than net, since deductions change for reasons that have nothing to do with the raise.

It can. Pick your state and the calculator adds state income tax, along with mandatory state payroll levies where they apply, such as California SDI. Leave it on "Federal tax only" and you get federal income tax plus Social Security and Medicare. City and county taxes are never included, since those depend on your locality rather than your state.

It depends on the state, and the calculator tells you which case yours falls into. Nine states have no wage income tax at all. Sixteen charge a single flat rate, so the figure is their exact statutory rate. The other twenty-five run graduated brackets, and each one is calculated on its real schedule with its own standard deduction and exemptions. Alabama and Arkansas follow the state's 2026 withholding formula, and Vermont uses its 2025 schedule until the 2026 one is published.

On a $60,000 salary with a 5% raise filing as Single, the $3,000 gross increase lands very differently by state. In Texas or another no-tax state you keep $2,410.50. In Colorado, where the flat 4.4% is joined by the 0.44% FAMLI paid-leave premium, you keep $2,265.30. In California, where the raise falls in the 6.6% bracket and SDI adds 1.3%, you keep $2,173.50. That is a $237 gap between California and Texas on the same raise.