See exactly how a raise impacts your pay. Enter your current salary and raise percentage to see new annual, monthly, and hourly rates.
How Salary Raises Work
A salary raise is typically expressed as a percentage of your current salary. A 5% raise on a $65,000 salary means an additional $3,250 per year, bringing your new salary to $68,250.
New Salary = Current Salary x (1 + Raise % / 100)
Dollar Increase = Current Salary x (Raise % / 100)
New Hourly Rate = New Salary / 2,080
Average Raise Benchmarks
Cost-of-living adjustment: 2-3% (keeps pace with inflation)
Merit increase: 3-5% (performance-based)
Promotion: 10-20% (new role or responsibilities)
Job change: 10-30% (switching employers)
Frequently Asked Questions
A typical annual merit raise is 3-5%. A cost-of-living adjustment is 2-3%. Promotions usually come with 10-20% increases. Switching jobs can yield 10-30% more. Anything above the inflation rate represents a real increase in purchasing power.
Raise Percentage = ((New Salary - Old Salary) / Old Salary) x 100. For example, going from $60,000 to $66,000: ((66000 - 60000) / 60000) x 100 = 10% raise.
A 3% raise roughly matches the historical average US inflation rate. If inflation is higher than 3%, a 3% raise is effectively a pay cut in real terms. Aim for above-inflation raises to grow your purchasing power.
On a $70,000 salary, a 5% raise adds $3,500/year, which is about $292/month or $135/biweekly before taxes. After taxes, the increase will be smaller depending on your tax bracket.
The best times are during annual reviews, after completing a major project, when taking on new responsibilities, or when your market value has increased. Research market rates using salary surveys before negotiating.
When negotiating a raise, come prepared with market salary data, your accomplishments, and a specific number. Asking for slightly more than your target gives room to negotiate down to your goal.