Salary Raise Calculator
See your new salary after a percentage raise.
Results update as you type.
How it works
The new salary shown here is what you will earn after a raise, expressed as a percentage of your current pay, along with the dollar value of the raise and how much more you will see each month. It matters because raises are almost always quoted as percentages, and turning that percentage into real dollars is what actually tells you how a pay rise affects your budget. This salary raise calculator multiplies your current salary by the raise percentage to find the increase, adds it back to get your new salary, and divides the annual raise by twelve to show the monthly bump. Working from the percentage is the natural way to do it, since that is how employers frame offers and cost-of-living adjustments, and converting to dollars makes the raise concrete. Employees use it to understand an offer, to check that a raise keeps pace with inflation, to compare a percentage increase against a competing job's figure, and to plan how to use the extra income. Keep in mind these are gross figures, before taxes and deductions: your take-home increase will be smaller than the gross monthly figure, since a raise is taxed like the rest of your income and may nudge part of your earnings into a higher bracket. Still, seeing the gross new salary and monthly increase is the essential first step in judging whether a raise meaningfully improves your financial position or merely offsets rising costs.
New salary = current salary × (1 + raise% ÷ 100) · Raise amount = current salary × raise% ÷ 100
The raise percentage is converted to a decimal by dividing by 100, and multiplying your current salary by it gives the raise amount in dollars. Adding that to the current salary — equivalently, multiplying by (1 + raise% ÷ 100) — produces the new salary. Dividing the annual raise by twelve spreads it across the year to show the monthly increase in gross pay. Every figure here is before tax, so it reflects the change to your stated salary rather than to your take-home pay.
Source:Standard percentage increase
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter current annual salary and raise percentage.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
New annual salary updates instantly as you type — no button to press.
Frequently asked questions
Is the new salary before or after tax?
It is before tax — a gross figure. Both the new salary and the monthly increase shown are pre-tax amounts, matching how salaries are quoted and negotiated. Your actual take-home pay will rise by less, because the raise is subject to income tax, payroll taxes and any deductions like retirement contributions. A raise can also push part of your income into a higher tax bracket, though only the amount above the threshold is taxed at the higher rate. Expect the net monthly increase to be somewhat smaller.
Does a raise keep up with inflation?
Only if the percentage exceeds the inflation rate. A raise below inflation is effectively a pay cut in real terms, since your money buys less than before. To judge this, compare your raise percentage against the current inflation rate: a 5% raise when inflation is 3% is a real gain of about 2%, while a 2% raise in the same environment loses ground. Cost-of-living adjustments are meant to offset inflation, but a merit raise on top is what actually improves your purchasing power.
How do I calculate a raise as a percentage?
If you know the dollar amount of a raise instead of the percentage, divide the raise by your current salary and multiply by 100. For example, a $3,000 raise on a $60,000 salary is 3,000 ÷ 60,000 × 100 = 5%. This is the reverse of what the calculator does and is handy for comparing offers quoted in different ways, or for checking whether a lump-sum raise matches the percentage your employer stated. The two forms describe the same increase.
Should I negotiate based on percentage or dollars?
Both framings are useful, and it helps to think in each. Employers usually work in percentages tied to budgets and performance ratings, so knowing the percentage helps you benchmark against typical raises. But the dollar figure is what changes your life, so translate any offer into annual and monthly dollars before deciding. When negotiating, researching the market rate for your role in absolute salary terms, then expressing your ask as both a target salary and a percentage, tends to be most persuasive.
How is the monthly increase calculated?
The calculator takes the annual raise amount and divides it by twelve to spread it evenly across the year, giving the gross increase to each monthly paycheck. If you are paid biweekly or semimonthly, your per-paycheck increase will differ — divide the annual raise by 26 or 24 respectively instead. Remember this monthly figure is before tax and deductions, so the amount added to your actual deposited pay will be lower. It is a quick way to picture the raise in everyday budgeting terms.