Salary Increase Calculator

Calculate your new salary after a raise. See the impact of percentage increases on your annual pay.

Calculate your new salary after a raise.

About This Calculator

Negotiate better with the Salary Increase Calculator. Understand what a percentage raise means in real dollars—both annually and per paycheck.

Salary raises compound over your career—a 5% raise this year becomes the base for next year's raise. Understanding the true value of raises helps you negotiate effectively and recognize when you're falling behind inflation and market rates.

Salary Increase Formula

New Salary = Current × (1 + Raise %)
Increase = Current × Raise %

Remember: raises compound—5% annually for 10 years = 63% total increase!

Practical Example

Current salary $60,000, 5% raise: New salary = $63,000. Annual increase = $3,000. Monthly increase = $250.

Raise Impact by Percentage

Raise %On $60KOn $100K
3% (COL)$1,800/yr$3,000/yr
5% (Merit)$3,000/yr$5,000/yr
10% (Promo)$6,000/yr$10,000/yr
20% (New Job)$12,000/yr$20,000/yr

Pro Tips

  • Always negotiate—most employers expect it
  • Aim for at least inflation + 2-3% for real growth
  • Job changes typically yield 10-20% increases
  • Document achievements before asking for a raise

Related tools: Hourly to Salary Calculator for rate conversion, US Paycheck Tax Calculator for take-home impact, and US Inflation Calculator to compare real value.

Frequently Asked Questions

How is salary increase calculated?

New Salary = Current × (1 + Raise %). For $60,000 with 5% raise: $60,000 × 1.05 = $63,000. Annual increase = $3,000. Monthly increase = $250.

What is a good salary increase percentage?

3% = cost-of-living adjustment. 5% = average merit raise. 10%+ = promotion. 15-20% = job change. Always aim for at least inflation rate to maintain purchasing power.

How to ask for a salary increase?

Document achievements, research market rates, time request after wins. Ask for 10-15% if underpaid, 5-7% for merit raise. Be prepared to negotiate or discuss timeline.