Pay Raise Calculator

Enter your current pay, choose whether it's hourly or annual, and add your raise as a percentage or a flat dollar amount — this calculator instantly fills in whichever piece you didn't enter. Free, with no signup required.

How to Use This Pay Raise Calculator

1. Enter your Current Pay and select whether it's Per Year or Per Hour.
2. Enter your Raise Amount, choosing either % (Percent) or $ (Flat Amount).
3. Read your results — Dollar Increase, Percentage Increase, and New Pay all appear instantly.

How to Calculate a Pay Raise (Percentage Formula)

New Pay = Current Pay × (1 + Raise Percentage ÷ 100)

Worked example: Say your current salary is $50,000 and you receive a 5% raise.

• Multiplier: 1 + (5 ÷ 100) = 1.05
• New salary: 50,000 × 1.05 = $52,500
• Dollar increase: 52,500 − 50,000 = $2,500

Percentage Raise vs. Flat Dollar Raise

A raise can be given as a percentage of your current pay, or as a flat dollar amount — and the two behave very differently depending on your starting salary.

A 5% raise scales with what you already earn: on a $40,000 salary, that's $2,000. On an $80,000 salary, the same 5% is $4,000 — double the dollar amount. A flat raise doesn't scale at all: a $2,000 raise is $2,000 whether you earn $40,000 or $80,000.

What's a Good Raise? (Typical Benchmarks)

According to the U.S. Bureau of Labor Statistics' Employment Cost Index, private-sector wages and salaries rose 3.4% over the 12 months ending March 2026. Typical ranges include:

• Cost-of-living adjustment (COLA): roughly 2–4%, intended to keep pace with inflation.
• Standard merit raise: roughly 3–5%, the most common raise type for solid performance.
• Promotion or market-adjustment raise: roughly 10–20%, reflecting a change in role.

Common Raise Percentages at Different Salaries

How Much Is a 2%, 3%, or 5% Raise Per Hour?

If you are paid by the hour, this table shows your new hourly wage after the most common raise percentages. To find the raise on any other wage, multiply your current rate by 1.0 plus the raise as a decimal (for a 3% raise, multiply by 1.03).

How Much Is a 2.8% Raise?

A 2.8% raise matches the Social Security cost-of-living adjustment for 2026, so it is a common reference point for COLA raises this year. Here is what it is worth:

• On a $50,000 salary: +$1,400 a year, for a new salary of $51,400. That is about $116.67 more a month, or $53.85 more per biweekly paycheck.
• On $20 an hour: +$0.56 an hour, for a new wage of $20.56. At 40 hours a week that is $22.40 more a week and $1,164.80 more a year.
• On $75,000: +$2,100 a year, for a new salary of $77,100.

What Percent Raise Did I Get?

If you already know your old and new pay, work backward to find the percentage. Subtract the old pay from the new pay, divide by the old pay, and multiply by 100.

Example: your wage went from $22.00 to $23.50 an hour. The increase is $1.50, and $1.50 divided by $22.00 is 0.0682, so you got a 6.82% raise. In the calculator above, choose the $ (Flat Amount) option and enter the dollar increase to get the same answer instantly.

How to Calculate a Compound Pay Raise Over Several Years

Raises build on each other. Next year's raise is a percentage of this year's higher pay, not your original salary, so the gains compound. To project your pay after several years of the same raise, use:

Future Pay = Current Pay × (1 + Raise Percentage ÷ 100)^{Number of Years}

The 2-point difference between a 3% and a 5% raise looks small in year one ($1,000 on $50,000), but after 20 years it adds up to more than $42,000 a year in pay. That is why negotiating your raise, or your starting salary, matters so much. Remember to compare any raise with inflation too: if prices rose 3% this year, a 3% raise only keeps your buying power the same.

Quick Answers

Frequently Asked Questions

How do I calculate a raise percentage?

If you know your old and new pay, subtract the old amount from the new amount, divide by the old amount, then multiply by 100. Going from $50,000 to $52,500: (52,500 − 50,000) ÷ 50,000 × 100 = 5%.

How much is a 3% raise?

It depends on your current pay — 3% scales with your salary. Use the calculator above to enter your exact numbers.

Does this calculator account for taxes?

No — it calculates your gross (pre-tax) pay increase only. Your actual take-home increase will be smaller after taxes. For an estimate of your after-tax pay, use our Take-Home Pay Calculator.

Is my data saved anywhere?

No. Nothing you enter is saved or sent anywhere — all calculations run locally in your browser and disappear when you refresh or close the page.

What is a good raise percentage?

A typical yearly merit raise in the US is around 3% to 4%. A raise below the inflation rate means your buying power actually shrinks, while a raise of 10% or more usually comes with a promotion or a job change.

How do I calculate a cost of living raise?

A cost of living adjustment (COLA) is usually tied to inflation, often measured by the Consumer Price Index (CPI). Enter your current pay and the COLA percentage, for example 3%, and the calculator shows your new pay and the exact dollar increase.

What is the difference between a merit increase and a cost of living raise?

A cost of living raise keeps your pay in line with rising prices, and it usually goes to most employees at the same rate. A merit increase is based on your performance, so it varies from person to person. Some employers combine both into one annual salary increase.

How much is a 2.8% raise?

A 2.8% raise adds $1,400 a year to a $50,000 salary, for a new salary of $51,400. On $20 an hour, it adds $0.56 an hour, for a new wage of $20.56, or about $1,164.80 more a year at 40 hours a week. 2.8% matches the 2026 Social Security cost-of-living adjustment.

What percent raise did I get?

Subtract your old pay from your new pay, divide by your old pay, and multiply by 100. If your wage went from $22.00 to $23.50, the $1.50 increase divided by $22.00 is 0.0682, so you got a 6.82% raise.

How do I calculate a compound pay raise over several years?

Multiply your current pay by (1 + raise percentage) raised to the number of years. A $50,000 salary with a 3% raise every year grows to about $57,964 after 5 years and $67,196 after 10 years.

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All financial calculations are based on standard compensation formulas.