Pay Raise Calculator - Calculate Your Salary Increase
Use our free pay raise calculator to determine your new salary after a raise. Calculate salary increases by percentage, dollar amount, or target salary.
How to Calculate a Pay Raise
Formula: New Salary = Current Salary × (1 + Raise Percentage / 100)
Example: If you earn $50,000 and receive a 5% raise: $50,000 × 1.05 = $52,500
Average Pay Raise by Industry (2025)
- Technology: 4.5% - 6.0% average raise
- Healthcare: 3.5% - 5.0% average raise
- Finance: 4.0% - 5.5% average raise
- Manufacturing: 3.0% - 4.0% average raise
- Retail: 2.5% - 3.5% average raise
Key Features
- Calculate raises by percentage, amount, or target salary
- Supports hourly, weekly, bi-weekly, monthly, and annual pay periods
- See annual and monthly impact of your raise
Frequently Asked Questions
How do I calculate my pay raise percentage?
Use this formula: (New Salary - Old Salary) ÷ Old Salary × 100 = Raise Percentage. For example, if your salary increases from $50,000 to $52,500: ($52,500 - $50,000) ÷ $50,000 × 100 = 5% raise.
What is a good pay raise percentage in 2025?
A good pay raise in 2025 typically ranges from 3% to 5% for annual adjustments. U.S. employers project average increases around 3.5%. A 5% to 10% raise is excellent and often accompanies promotions.
How much is a 5% raise on $50,000?
A 5% raise on $50,000 equals $2,500 per year, bringing your new salary to $52,500. Monthly, that's an extra $208.33 before taxes.
Should I calculate my raise before or after taxes?
Calculate your raise on gross (pre-tax) salary for accurate comparisons. Your take-home increase will be lower after taxes, typically 20-35% less depending on your tax bracket.
How do I calculate an hourly pay raise?
For hourly raises: New Hourly Rate = Current Rate × (1 + Raise%/100). A $20/hour rate with 5% raise becomes $21/hour. Annual impact: $1 × 40 hours × 52 weeks = $2,080 more per year.
What is the average raise percentage in 2025?
U.S. employers project 3.5% average raises for 2025. Technology and healthcare see 4-5%, while retail averages 3.1%. High performers can expect 5-10%, and job switchers typically see 10-20% increases.
How do I negotiate a higher raise?
Document achievements with specific numbers (revenue generated, costs saved). Research market rates for your role. Present 2-3 comparable salary data points. Ask for 10-15% above your target to leave negotiation room. Time your request after visible wins.
Can I convert hourly to annual salary with this calculator?
Yes. Enter your hourly rate and the calculator shows weekly, monthly, and annual equivalents based on standard 40-hour weeks and 52 weeks per year. Works backwards too—enter annual salary to see hourly rate.
Best Time to Ask for a Raise
Timing significantly impacts your success rate. Research shows Tuesday and Wednesday mornings are optimal—managers are focused but not overwhelmed.
- 2-3 months before annual reviews — Gets you on the budget radar early
- After completing major projects — Your value is fresh in everyone's mind
- When company announces strong earnings — Budget flexibility is higher
- During your work anniversary — Natural checkpoint for compensation review
Avoid asking during budget freezes, layoffs, Monday mornings, or Friday afternoons.
Merit Raise vs Promotion Raise
Merit raises reward performance in your current role, typically 3-5% annually. Same title, same responsibilities.
Promotion raises accompany new titles and expanded responsibilities, usually 10-20%. These represent career advancement, not just compensation adjustment.
Use this calculator to compare: Is a 4% merit raise now better than waiting 6 months for a potential 15% promotion?
What to Do If Your Raise Request Is Denied
A "no" isn't always final. Ask for specifics:
- What metrics would justify a raise in 3-6 months?
- Are non-monetary benefits available (remote work, extra PTO)?
- When will budgets be reviewed again?
If consistently undervalued despite documented performance, remember: job switchers see 10-20% increases on average. Sometimes your best raise comes from a new employer—or a new career entirely.
Accelerate Your Career Beyond Annual Raises
While a 3-5% annual raise keeps pace with inflation, career changers into tech see salary jumps of $25,000 or more. That's equivalent to 10+ years of standard merit raises compressed into months.
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