— Salary & Income
Pay Raise Calculator
Calculate salary after a raise. Enter current pay and a percentage or dollar increase to see the new salary, cash increase, percentage increase, after-tax take-home bump, and inflation-adjusted real raise.
New salary
$63,000
- Raise amount
- $3,000
- Raise %
- 5%
- Current salary
- $60,000
- After-tax raise
- $2,410.50
Try: 5% raise on $60,000, 10% raise on $80,000, 3% raise (cost of living), $10,000 raise on $90,000
— Before & after
| Item | Amount |
|---|---|
| Current salary | $60,000 |
| New salary | $63,000 |
| Gross raise | $3,000 |
| After-tax raise | $2,410.50 |
— How it works
New = current × (1 + raise%/100), or current + amount. After-tax raise = net pay on the new salary − net pay on the old. Real raise = raise% − inflation%.
The headline raise vs the one you feel
A raise has two sizes. The headline is simple: a 5% raise on $60,000 is $3,000, taking you to $63,000. But that $3,000 is extra income stacked on top of what you already earn, so it’s taxed at your marginal rate — the top band your income reaches, not your average rate. After federal tax and FICA (and state, if any), you typically keep 65–80% of a raise. That’s the after-tax raise, and it’s the number that actually changes your bank balance.
Worked example — $60,000, 5% raise, single, 2025: New salary $63,000 · gross raise $3,000 · after-tax raise ≈ $2,411 (you keep about 80%). Spread over 26 biweekly paychecks, about $115 more gross per cheque.
Is it a real raise? Mind inflation
A raise only makes you better off if it beats inflation. If prices are rising 3% a year and you get a 3% raise, your buying power is flat — you’re running to stand still. A 2% raise in a 3% inflation year is a real-terms pay cut. Enter an inflation rate and the calculator shows the real raise (raise minus inflation): the genuine change in what your salary can buy. This is why “cost-of-living adjustments” pegged to inflation keep you level rather than ahead.
Percentage or amount — and what’s left out
Enter the raise whichever way you were told it: a percentage (“you’re getting 4%”) or a flat amount (“a $5,000 bump”) — the calculator fills in the other. The after-tax figure uses the federal brackets and FICA after the standard deduction, plus a flat state rate if you add one; it’s an estimate, not your exact paycheck, and ignores pre-tax deductions like 401(k) that would change the net. For a full gross-to-net on the new salary, use the take-home calculator.
— Reader questions
How do I calculate a salary increase?
For a percentage raise, multiply your salary by (1 + raise ÷ 100): $60,000 × 1.05 = $63,000 for a 5% raise. For a flat amount, just add it. The percentage equivalent of a dollar raise is the amount ÷ current salary × 100.
How much of a raise do I actually keep after tax?
Usually 65–80%, depending on your bracket. A raise is taxed at your marginal rate plus FICA (7.65%), so a $3,000 raise in the 12% bracket nets about $2,400, or roughly $2,100 once you’re in the 22% bracket. The exact share depends on your income, filing status and state.
What is a good annual raise?
Typical merit raises run 3–5%; cost-of-living adjustments track inflation (recently ~3%). Anything below inflation is a real-terms cut, while promotions or job changes often bring 10–20%. Compare your raise to inflation using the real-raise figure.
Why does my raise feel smaller than the percentage?
Two reasons: tax takes a fifth to a third of the extra income at your marginal rate plus FICA, and inflation erodes what’s left. A 4% raise in a 3% inflation year leaves only about 1% of real, after-inflation gain — before tax is even counted.
Does a raise push me into a higher tax bracket and cost me money?
No — brackets are marginal, so only the portion of income above each threshold is taxed at the higher rate. A raise can never reduce your take-home; you simply keep a bit less of the part that crosses into the next band.