Raise Calculator: New Salary and Real Pay Increase

Use this raise calculator to see your new annual salary, how much more you will earn per year and per month, and whether the raise beats inflation.

New annual salary–
Raise per year–
Raise per month–
Real raise after inflation–

Amounts are before tax. Your take-home increase will be smaller after federal, state and payroll taxes.

Raise formula

New salary = Current salary × (1 + raise %) Real raise = (1 + raise) ÷ (1 + inflation) − 1

Raise calculator example

On a $60,000 salary with a 4% raise:

  • New salary: $62,400
  • Raise per year: $2,400 (about $200 a month before tax)

If inflation is 3%, the real raise is only about 0.97% — your purchasing power barely moves.

How to ask for a bigger raise

  1. Know your market rate: Check salary surveys and job postings for your role and location.
  2. Document your impact: Revenue won, costs cut, projects shipped.
  3. Time it well: Ask before budgets are set, often a quarter before review season.
  4. Negotiate the whole package: Bonus, 401(k) match, PTO and remote flexibility all have value.

Make your raise count

Lifestyle creep can absorb a raise within months. Route at least half of it to savings automatically: increase your 401(k) contribution and use the savings goal calculator to set a target. See long-term growth with the compound interest calculator and track purchasing power with the inflation calculator.

Frequently Asked Questions

How do I calculate a raise?

Multiply your current salary by 1 plus the raise percentage. A 4% raise on $60,000 is $62,400, an extra $2,400 a year.

What is a good raise percentage?

Typical US merit raises run around 3%–5%. Anything below inflation is effectively a pay cut in purchasing power; promotions and job changes often bring 10% or more.

What is a real raise?

A real raise adjusts for inflation: (1 + raise) ÷ (1 + inflation) − 1. A 4% raise with 3% inflation is a real raise of about 0.97%.

This content is for general information only and is not investment advice. Consider your own situation and consult a licensed professional before making financial decisions.