United States · Pay
Pay raise calculator.
Enter your pay and a raise percentage, or a target salary, to see the new annual, hourly and per-paycheck amounts and an after-tax estimate.
A raise of r% multiplies your pay by 1 + r/100. Annual pay divided by 2,080 hours (40 hours × 52 weeks) gives the hourly equivalent.
Your pay
New pay
The arithmetic
New pay = current pay × (1 + raise ÷ 100). The raise needed to reach a target is (target ÷ current − 1) × 100. Hourly figures use annual pay divided by hours per week × 52, which is 2,080 for a 40-hour week; the federal government divides by 2,087 to account for the calendar, and many private employers use 2,080. Per-paycheck gross is annual pay divided by 52, 26, 24 or 12.
Worked examples
A 4% raise on $60,000: new pay is $62,400, an increase of $2,400 a year, from $28.85 to $30.00 an hour. On a biweekly schedule gross pay goes from $2,307.69 to $2,400.00, $92.31 more per paycheck, which is about $69.23 after a 25% tax estimate.
A 5% raise on $22 an hour: the annual equivalent rises from $45,760 to $48,048 and the hourly rate to $23.10.
Target pay: to move from $60,000 to $66,000 you need a 10% raise, or $500.00 more gross per monthly paycheck.
Is the raise real?
- Compare it with inflation. A 3% raise in a year with 3% price growth leaves buying power unchanged. The Bureau of Labor Statistics publishes the Consumer Price Index monthly.
- Look at take-home, not gross. The extra pay is taxed at your top federal bracket plus Social Security and Medicare tax (7.65% for most employees) and any state tax, so a $2,400 gross raise typically adds about $1,700 to $1,900 after tax.
- Bonus versus base. A base raise compounds into future raises, overtime rates and 401(k) match; a bonus does not.
- Overtime. If you are paid hourly, overtime is 1.5 times the regular rate under the Fair Labor Standards Act for non-exempt employees, so a raise also lifts every overtime hour.
What this tool does not cover
It does not compute exact withholding, bracket creep, benefits such as health premiums that scale with pay, or state-specific rules. For exact net pay use a paycheck calculator for your state.
Common mix-ups
Reading a raise percentage as a take-home percentage; dividing salary by 52 × 40 when the job is not 40 hours; and comparing a 3% raise with a 3% price rise as if gross and after-tax pay were the same thing.
Frequently asked questions
How do I calculate a pay raise percentage?
Divide the new pay by the old pay, subtract 1 and multiply by 100. Going from $60,000 to $63,000 is 63,000 / 60,000 = 1.05, a 5% raise.
How do I turn a salary into an hourly rate?
Divide annual pay by 2,080, which is 40 hours times 52 weeks. If you work a different number of hours, enter them and the calculator uses hours times 52.
How much of a raise do I actually keep?
Roughly 65% to 80% for most employees: the extra pay is taxed at your marginal federal rate, 7.65% FICA and any state income tax. Enter your own estimate in the tax field.
What is a typical raise?
Annual merit raises have commonly been in the range of 3% to 4% in recent years, with larger gains when changing employers. Check current figures from sources such as the Bureau of Labor Statistics employment cost index.
Does a raise change my tax bracket?
Only the income above the bracket threshold is taxed at the higher rate. A raise never reduces your take-home pay because of brackets alone.
Sources
- U.S. Office of Personnel Management, Computing hourly rates of pay using the 2,087-hour divisor — why annual pay is divided by about 2,080 hours (retrieved 2026-11)
- IRS Tax Topic 751, Social Security and Medicare withholding rates — 6.2% Social Security, 1.45% Medicare and the Additional Medicare Tax (retrieved 2026-11)
Last updated November 8, 2026. Tax-law figures are for tax year 2026.
Estimate only
This is an educational calculation, not tax, legal or investment advice. Your plan, lender, employer or tax professional has the final numbers.