What is the average pay raise percentage?

In the US, the average annual pay raise is typically 3-5%. A raise matching or exceeding inflation (around 3-4%) keeps your purchasing power steady. Raises of 5-10%+ are considered strong and often come with promotions.

How do I calculate my new salary after a raise?

To calculate a raise by percentage: New Salary = Current Salary × (1 + raise%/100). For a dollar raise: simply add the raise amount to your current salary. For example, $60,000 with a 5% raise = $60,000 × 1.05 = $63,000.

Pay Raise Calculator — How Much Is Your Raise Worth?

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Frequently Asked Questions

What is a good pay raise percentage? +

A cost-of-living raise matches inflation (~3-4%). A merit raise of 5-7% is considered good. Anything above 10% is excellent and typically tied to a promotion or competing offer.

How often should I get a raise? +

Most companies do annual performance reviews with raises. If you haven't received a raise in 12-18 months, it's reasonable to request one. Always tie your request to performance, market data, or increased responsibilities.

Should I negotiate salary at a new job or after starting? +

Both. The best leverage is when you have a job offer — negotiate before you accept. Once employed, the best time to raise salary discussions is during performance reviews or after significant achievements.

How to Use This Pay Raise Calculator

Choose whether you're paid an annual salary or an hourly rate, enter your current amount, and set your hours per week if hourly. Then select your raise type: enter a percentage (e.g. 5%) or a flat dollar amount (e.g. $3,000). Hit Calculate Raise to instantly see your new pay broken down by hour, day, week, month, and year — with a side-by-side comparison to your current earnings.

Example: A $60,000 salary with a 5% raise becomes $63,000 — an increase of $3,000 per year, $250 per month, or roughly $57.69 per week.

What Is a Good Pay Raise?

Pay raises vary by industry, performance level, and economic conditions. Use this benchmark to evaluate any offer:

2–3% — Cost-of-living adjustment. Keeps pace with inflation but does not increase your purchasing power.
4–6% — Merit raise. Reflects solid performance; above average for most industries.
7–10% — Strong raise. Often tied to a promotion, expanded responsibilities, or a competing offer.
10%+ — Exceptional. Typically accompanies a significant title change or counter-offer negotiation.

The US Bureau of Labor Statistics reports that median annual wage growth typically falls between 3–5%. If your employer offers below that range — and your performance and market data support a higher number — it is worth requesting a conversation.

When to ask for a raise

The best time to request a raise is just before or during your annual performance review, immediately after completing a high-impact project, or when your responsibilities have grown beyond your original job description. Receiving a competing job offer is also significant leverage — though you should only mention it if you are genuinely open to leaving.

Use our How to Ask for a Raise guide for step-by-step scripts, timing strategy, and follow-up templates.

Raise vs. promotion

A standard merit raise adjusts your pay within the same role. A promotion raise reflects a change in title and responsibilities and typically carries a larger percentage increase (10–20% or more). If you have taken on work significantly beyond your job description, consider framing your request as a promotion conversation rather than a standard raise discussion.

Tax rates shown are based on the latest available data but may not reflect the most recent legislative changes. Always verify current rates at your state's official revenue department website before making financial decisions.

Pay Raise Calculator