Pay Raise Calculator
Got a raise — or negotiating one? Enter your current salary and the raise (as a percent or as your new salary) to see exactly what it means per year and per paycheck. Your numbers never leave your browser.
Calculate Your Raise
⚡ Quick Facts — Pay Raises
- Typical US merit raise: about 3–4% per year
- 5% on $75,000 = $3,750 more per year ≈ $144.23 per biweekly paycheck
- Raises compound: 4% yearly turns $75,000 into about $91,249 in 5 years
- After-tax reality: only part of a raise reaches your pocket — run it through our paycheck calculator to see the net effect
- Beat inflation: a raise below inflation is effectively a pay cut in purchasing power
How Pay Raises Work
A raise sounds simple — more money — but the number that matters is what lands in your bank account each payday. Here's how to read it.
1. Percent vs. dollars. Most employers quote raises as a percent of your current salary. A 5% raise on $75,000 adds $3,750 a year; the same 5% on $120,000 adds $6,000. Percentages hide the real dollars, so always convert.
2. Per paycheck, not per year. Divide the annual raise by your pay periods (26 for biweekly) to see the number you'll actually notice. That $3,750 raise is $144.23 per paycheck before tax.
3. Taxes take a slice. Your raise is taxed at your marginal rate — the rate on your top dollars of income, not your average rate. If you're in the 22% federal bracket, roughly 22 cents of every raise dollar goes to federal tax, plus 7.65% FICA and any state tax.
4. Compounding is the quiet superpower. A 4% raise every year for five years grows $75,000 to about $91,249 — because each year's raise builds on the last. Negotiating one strong raise early in your career echoes for decades.
📝 Example: $75,000 salary with a 5% raise, paid biweekly
New annual salary: $75,000 × 1.05 = $78,750
Raise amount: $3,750 per year ≈ $144.23 per paycheck
New gross per paycheck: $78,750 ÷ 26 = $3,028.85 (was $2,884.62)
After tax, you'd keep roughly 70–75% of that $144.23 depending on your bracket and state — try the paycheck calculator with $78,750 to see your exact new take-home.
Frequently Asked Questions
Is a 3% raise good?
It's average. Typical US merit increases run 3–4%, so 3% keeps you roughly in line with peers — but if inflation is running higher, your purchasing power still shrinks. Above 5% usually means a promotion or a strong negotiation.
How do I calculate a raise percentage?
Divide the raise amount by your current salary and multiply by 100. A $3,000 raise on $75,000 is (3,000 ÷ 75,000) × 100 = 4%. Going the other way, multiply your salary by the percent: $75,000 × 0.04 = $3,000.
Will taxes eat my whole raise?
No — but they take a bigger bite than your average rate suggests. Only the new dollars are taxed at your marginal rate (say 22% federal + 7.65% FICA + state tax). On a $3,750 raise you might keep around $2,600–$2,800 of it.
Should I negotiate salary or benefits?
Both have value, but salary compounds — every future raise, bonus percentage and 401(k) match builds on it. Benefits like extra PTO or a signing bonus are one-time. When in doubt, push the base salary first.
How often should I expect a raise?
Most companies review pay annually. If it's been over a year with no adjustment, bring market data for your role and a record of your contributions — that's the combination that moves numbers.
Does this calculator show after-tax raise amounts?
This page shows gross (pre-tax) figures. For the after-tax picture, take your new salary from above and enter it in our paycheck calculator — the difference between the two results is your true raise per paycheck.
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