How do I calculate a pay raise?

Multiply your current salary by one plus the raise percentage. A 5% raise on $60,000 is $60,000 x 1.05 = $63,000. The calculator can also work backward from a new salary to the percentage.

How much is a 5% raise?

On a $60,000 salary, 5% adds $3,000 a year, about $250 a month before tax. The dollar value of any percentage scales with your current pay.

How do I find the percentage of a raise?

Subtract your old salary from the new one, then divide by the old salary. Going from $50,000 to $55,000 is a $5,000 increase, or 10%.

Is a pay raise taxed?

Yes, the extra income is taxed at your marginal rate, so your take-home increase is smaller than the gross raise. A paycheck calculator shows the after-tax amount.

Pay Raise Calculator

See what a raise really adds to your pay: the new salary, the annual and monthly increase, and your updated hourly rate. Enter a percentage or a target figure.

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Reviewed by the FinanceTool team · Last reviewed June 2026 · Figures built on standard pay-period and gross-to-net wage formulas. Estimates only, not financial advice. Read our methodology.

Your raise

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Current salary

Raise

New salary

Hours per week

Weeks per year

Your new salary

$63,000.00

A 5.0% raise adds $3,000.00 a year ($250.00/month).

New salary: $63,000.00
Raise: 5.00%
Increase per year: $3,000.00
Increase per month: $250.00
New hourly rate: $30.29

How a pay raise is calculated

A percentage raise multiplies your current salary by one plus the rate. A 5% raise on $60,000 is $60,000 x 1.05 = $63,000, an extra $3,000 a year or $250 a month before tax. You can also work backward: if you know the new salary, the raise percentage is the increase divided by your old salary.

new salary = current x (1 + raise%)
raise%     = (new - current) / current

Watch out for inflation

A raise only increases your buying power if it beats inflation. If prices rose 4% and your raise is 3%, your real pay has slipped. When negotiating, it helps to frame the number against the current inflation rate, not just last year's salary.

Raise vs take-home

Remember that a raise is taxed at your marginal rate, so the take-home increase is smaller than the gross figure here. A state paycheck calculator shows how much of the raise you actually keep.

How this is calculated

Applies your raise (as a percentage or a new salary) to your current pay to show the increase per pay period and per year, plus the percentage change. Figures are gross, before tax, so your take-home increase will be smaller after federal, FICA, and state withholding.

Frequently asked questions

What a Raise Is WorthHow to calculate a pay raise, what 3%, 5% and 10% add per month, and why beating inflation matters. Free pay raise calculator inside.