Pay Raise Calculator

A percentage raise is calculated by multiplying your current salary by the raise percentage divided by 100, then adding the result to your current salary. For example, a 5% raise on a $60,000 salary equals $60,000 × 0.05 = $3,000 raise, resulting in a new salary of $63,000.

A percentage raise scales with your current salary—the higher your salary, the larger the dollar increase. A flat-amount raise adds a fixed dollar amount regardless of your current pay level. For example, a 5% raise on $50,000 is $2,500, but on $100,000 it is $5,000. A $3,000 flat raise is $3,000 in both cases.

In the US, typical annual merit raises range from 3% to 5% for solid performers. Promotional raises often range from 10% to 20%. Cost-of-living adjustments typically track inflation at 2% to 4%. High performers or those changing roles may see raises of 10% or more.

It depends on context. If your base salary is high, a flat amount may appear more modest. If your salary is lower, a percentage raise compounds better over time. Always consider the dollar impact—a 3% raise on $80,000 is $2,400, while a $3,000 flat raise is slightly more regardless of how it is framed.

Your gross raise amount will be reduced by taxes and deductions. The net increase in take-home pay depends on your tax bracket, state income tax, and benefit deductions. Use our Paycheck Calculator to estimate the after-tax impact of your new salary.