Pay Raise Calculator
Enter your current salary and raise details to see your new annual, monthly, biweekly, and hourly pay — instantly.
How to Calculate a Pay Raise
There are two ways to think about a raise — as a percentage of your current salary, or as a flat dollar increase.
New Salary = Current Salary × (1 + Raise % ÷ 100)
Raise Amount = New Salary − Current Salary
Raise % = (New Salary − Current Salary) ÷ Current Salary × 100
Average Pay Raise by Year
| Type of Raise | Typical Range | Notes |
|---|---|---|
| Cost of living (COLA) | 2–4% | Keeps pace with inflation — not a real raise |
| Merit / performance | 4–7% | Standard for meeting/exceeding expectations |
| Promotion | 10–20% | Internal role change — negotiate hard here |
| Job change (external) | 15–30% | Highest leverage — switching companies |
| Counter-offer | 10–25% | When you have a competing offer in hand |
Frequently Asked Questions
Is a 5% raise good?
5% is above average for a standard annual review — most cost-of-living adjustments are 2–3%. However, if inflation is running at 4%, a 5% raise is only a 1% real increase in purchasing power. For a strong performance year, aim for 7–10%. For a promotion, expect 15–20%.
How do I negotiate a higher raise?
The most effective approach: get a competing offer. External offers give you real leverage because your employer knows what it costs to replace you (typically 50–200% of your annual salary in recruiting and training costs). If you can't get a competing offer, research market salaries on Glassdoor or LinkedIn and anchor your request 10–15% above your target.
What's the difference between a raise and a cost of living adjustment?
A cost of living adjustment (COLA) is designed to maintain your purchasing power as prices rise — it's not a true raise, just keeping up with inflation. A merit raise is above and beyond COLA. If your employer gives you a 3% raise in a year when inflation is 4%, your real salary went down.
Should I ask for a raise as a percentage or dollar amount?
Ask in dollar terms — it's concrete and harder to argue with. "I'm looking for $72,000" is more powerful than "I'd like a 7% raise." Once agreed, verify the percentage is what you expected using this calculator.