Pay Raise Calculator
Calculate your new salary from a raise percentage, or the percentage from a new salary — plus the real raise after inflation.
How it works
New salary = current × (1 + raise%) · Real raise = (1 + raise%) ÷ (1 + inflation%) − 1
Enter either a raise percentage to find your new salary, or a target new salary to find the percentage — the calculator handles both directions. It also shows the monthly difference in your pay and the real raise: because inflation erodes buying power, a 5% raise during 3% inflation is really closer to 1.9% in what you can actually buy. If your raise trails inflation, your real pay has fallen.
Worked example
A 5% raise on a $60,000 salary lifts it to $63,000 — an extra $3,000 a year, about $250 a month before taxes. With inflation at 3%, the real raise is about 1.94%, since prices rose alongside your pay.
Frequently asked questions
Is this before or after tax?
Before tax. Your take-home increase will be smaller, because part of the raise is taxed — often at your marginal rate, which is higher than your average rate. Use a paycheck calculator to see the net figure.
What is a real raise?
It is your raise adjusted for inflation — the change in what your pay can actually buy. If prices rise 3% and you get a 3% raise, your real raise is roughly zero; you are keeping pace, not getting ahead.
How big a raise should I expect?
Typical annual merit raises run around 3%–5%, roughly tracking inflation. Promotions, job changes and in-demand skills can bring larger jumps — often the fastest way to a raise well above inflation.
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This is an educational estimate, not financial or tax advice. Confirm figures with a professional.