Free Pay Raise Calculator
Calculate your new salary after a raise. Enter your current pay and raise percentage — or your new salary — to see the dollar increase, percentage change, and breakdowns across every pay period.
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Understanding Pay Raises: What You Need to Know
A pay raise calculator helps you understand the real impact of a salary increase. Whether you've just been offered a raise, you're preparing to negotiate one, or you're benchmarking your compensation against industry standards, knowing exactly how much more you'll earn across every pay period is essential for financial planning and career decisions.
Average Raise Percentages by Industry
Pay raises vary significantly across industries. According to recent compensation surveys, technology and software companies typically offer raises of 4% to 6%, making them among the most competitive sectors. Healthcare professionals see average annual increases of 3% to 5%, while financial services workers can expect 3.5% to 5.5%. Retail and hospitality industries tend to offer lower raises, averaging 2% to 3.5%. The energy and utilities sector falls in the middle at 3% to 4.5%. Government employees usually receive standardized annual step increases of 2% to 3%, often tied to cost-of-living adjustments. Keep in mind that promotional raises are a different category — these typically range from 10% to 20%, regardless of industry.
How to Negotiate a Higher Raise
Successful salary negotiation starts with preparation. Research market rates for your role using platforms like Glassdoor, Levels.fyi, or Payscale. Document your accomplishments, quantifying your impact wherever possible — revenue generated, costs saved, projects completed, or efficiency improvements made. Frame your request around the value you bring rather than personal financial needs. Practice your pitch and prepare for counter-offers. Consider negotiating beyond just base salary: bonuses, equity, additional PTO, remote work flexibility, and professional development budgets all have tangible value. If your employer can't meet your number, ask what milestones would justify the raise you want and get that commitment in writing.
When to Ask for a Raise
Timing matters when requesting a pay raise. The most common and effective time is during your annual or semi-annual performance review, when compensation discussions are already expected. Other strong moments include immediately after completing a high-impact project, after taking on significant new responsibilities without a corresponding pay adjustment, or when you've received a competing job offer. Avoid asking during company-wide budget cuts, layoffs, or your manager's busiest season. If it's been more than 18 months since your last raise and you've consistently performed well, it's generally appropriate to initiate the conversation regardless of the review cycle.
Raise vs. Inflation: Are You Really Earning More?
One of the most important factors to consider is whether your raise outpaces inflation. If inflation is running at 3% and your raise is 3%, your real purchasing power hasn't changed at all. To genuinely increase your standard of living, your raise needs to exceed the current inflation rate. In recent years, with inflation fluctuating between 2% and 6%, many workers have experienced effective pay cuts despite receiving nominal raises. Use our pay raise calculator to see your exact dollar increase, then compare it against the current Consumer Price Index (CPI) to understand your real-terms gain. For employers managing team compensation, tracking raises against inflation ensures you retain top talent rather than losing them to competitors offering market-rate adjustments.
Frequently Asked Questions
What is the average pay raise percentage?
The average pay raise in the U.S. is typically between 3% and 5% per year. Merit-based raises average around 3.5%, while promotional raises can be 10% to 15% or more. Cost-of-living adjustments usually track inflation at 2% to 3%.
How do I calculate my pay raise percentage?
Subtract your old salary from your new salary to get the dollar increase. Divide the dollar increase by your old salary and multiply by 100. For example, going from $50,000 to $55,000 is a $5,000 increase, or ($5,000 ÷ $50,000) × 100 = 10% raise.
Is a 5% raise good?
A 5% raise is above the national average of 3% to 4% and is generally considered a good raise. However, you should factor in inflation (typically 2-3%) — a 5% raise gives you roughly 2-3% in real purchasing power growth.
When is the best time to ask for a raise?
The best times to ask for a raise include after completing a major project, during your annual performance review, when you've taken on new responsibilities, or when your company is performing well financially. Avoid asking during layoffs, budget cuts, or your manager's busiest periods.
How often should you get a raise?
Most employees receive an annual raise, typically during their performance review cycle. However, you may negotiate additional raises when promoted, when taking on significant new duties, or after 18-24 months without an increase. Some industries provide semi-annual reviews.
Should I accept a raise that's below inflation?
A raise below inflation effectively means a pay cut in real purchasing power. While any raise is better than none, consider negotiating for at least an inflation-matching raise (2-3%). If your employer can't meet that, discuss non-monetary compensation like extra PTO, flexible work, or professional development budgets.
