How the pay Raise Calculator works
A raise compounds your whole future pay, since next year's raise applies to this year's higher base, which is why negotiating even one extra percent matters more than it looks in a single check.
New salary = current salary × (1 + raise%)
Example: a 4% raise on $60,000 is a $62,400 salary, $2,400 more per year, which shows up as roughly $92 per biweekly paycheck before taxes.
Frequently asked questions
What is a typical annual raise?
Cost-of-living raises usually run 3% to 4%, merit raises 4% to 6%, and promotions 10% to 20%. Job switches historically deliver the biggest jumps.
Will taxes eat my raise?
You keep the majority. Only the raise itself is taxed at your top marginal rate, not your whole salary. A common myth is that a raise can lower take-home pay by changing brackets, and it cannot.
How do I calculate a raise to a specific new salary?
Divide the new salary by the old one, subtract 1, and multiply by 100. Going from $60,000 to $66,000 is a 10% raise.