How this calculator works
A raise is a percentage of what you earn now: new pay = current pay × (1 + raise ÷ 100). If you were offered a new figure instead, the raise is (new − current) ÷ current. The calculator shows what the raise adds per year, month, paycheck and hour, what's left after tax, and whether it beats inflation.
- New pay = current pay × (1 + raise % ÷ 100). Raise % from an offer = (new − current) ÷ current × 100.
- Hourly pay is converted to yearly at hours per week × 52; extra per paycheck = yearly raise ÷ 26 (biweekly), per month ÷ 12.
- Real raise = (1 + raise %) ÷ (1 + inflation %) − 1.
Worked example
With these inputs: current pay $55,000; paid per Year; hours per week 40; raise 4%; inflation over the year 3.4%; tax rate on the extra pay 30%.
The result is new salary $57,200.00, with raise 4.00% · $2,200.00 a year and extra per month $183.33. The tax rate here is a rough marginal rate (federal bracket + 7.65% Social Security and Medicare + any state tax); the extra pay is taxed at your top rate, not your average.
Is your raise above average?
The Bureau of Labor Statistics' Employment Cost Index shows wages and salaries for civilian workers rose 3.2% over the 12 months to June 2026. A raise at or above that is keeping pace with the market; a raise below inflation means your pay buys less than it did a year ago. The table shows what 2%, 3%, 4%, 5% and 10% raises add to the same salary, from $91.67 to $458.33 a month.
Turn the raise into a plan
The raise lands in each paycheck, not all at once, so plan it per paycheck. Decide where the extra goes before the first bigger check arrives: savings, an extra debt payment or a bill that just went up. The paycheck budget calculator splits your bills across paydays, the 50/30/20 budget calculator rebalances your categories at the new pay, and the hourly to salary calculator converts between pay rates.
The tax rate is a rough marginal rate: your federal bracket, 7.65% Social Security and Medicare, and any state income tax. A raise is taxed at your top rate, so the after-tax gain is smaller than your average tax rate suggests, but moving into a higher bracket never reduces your take-home pay overall.
Sources
Frequently asked questions
How do I calculate a pay raise?
Multiply your current pay by 1 plus the raise as a decimal. A 4% raise on $55,000 is $55,000 × 1.04 = $57,200, an extra $2,200 a year.
How do I work out a raise percentage?
Subtract your old pay from the new pay, divide by the old pay and multiply by 100. From $55,000 to $57,200 is $2,200 ÷ $55,000 = 4%.
How much is a 4% raise per paycheck?
On $55,000, a 4% raise is $2,200 a year, or $84.62 per biweekly paycheck before tax (26 paychecks a year), and $183.33 a month.
What is a good raise in 2026?
BLS data show wages and salaries rose 3.2% over the year to June 2026, and prices rose 3.4% over the year to August 2026. A raise above about 3.5% beats both.
What is a real raise?
Your raise after inflation: (1 + raise) ÷ (1 + inflation) − 1. A 4% raise with 3.4% inflation is a 0.58% real raise.