What This Calculator Does
This pay raise calculator shows exactly how a salary increase changes your pay across every period. Enter your current salary, choose whether the raise is a percentage or a dollar amount, and the calculator returns the new annual, monthly, semi-monthly, biweekly, weekly, and hourly figures. It also reports the effective raise percentage and the total annual raise amount, so you can compare offers or budget for the new income.
How to Calculate a Pay Raise
The two most common raise calculations are:
- Percentage raise: raise amount = current salary × raise %; new salary = current salary × (1 + raise %).
- Dollar raise: raise amount is given directly; new salary = current salary + raise amount.
For example, a 5% raise on $60,000 equals a $3,000 raise and a new salary of $63,000. A $3,000 flat raise on $60,000 equals exactly 5%. The two approaches are mathematically equivalent when the inputs match.
Pay Period Conversions
Salary is annualized by multiplying by the number of pay periods per year. Standard conversions used by this calculator:
- Annual = monthly × 12, biweekly × 26, weekly × 52, semi-monthly × 24
- Hourly × hours per week × 52 weeks = annual salary (assuming 2,080 hours per year at 40 hours per week)
Worked Example
Suppose you earn $75,000 annually and receive a 4% raise:
- Raise amount: $75,000 × 4% = $3,000
- New annual salary: $75,000 + $3,000 = $78,000
- New monthly pay: $78,000 / 12 = $6,500
- New biweekly pay: $78,000 / 26 = $3,000
- New weekly pay: $78,000 / 52 = $1,500
- New hourly pay (40 hrs/week): $78,000 / 2,080 ≈ $37.50
Is a 4% Raise Good?
A 4% raise is slightly above the long-term US average of around 3% to 4%, and it usually outpaces inflation in a low-inflation year. Whether the raise is good depends on the market rate for your role, your performance, and the cost of living in your area. Use sites like levels.fyi, Glassdoor, and the BLS Occupational Employment Statistics to benchmark what your role pays today, and aim for at least the median.
Negotiating a Higher Raise
- Lead with data: bring salary band research and a list of comparable roles.
- Quantify impact: cite revenue generated, costs saved, or projects delivered.
- Anchor high but reasonably: propose a specific number near the upper end of the band.
- Consider total comp: target bonuses, equity, benefits, and development budgets.
- Time it well: align with performance review cycles, budget windows, or major wins.
Sources and References
- US Bureau of Labor Statistics — Employment Cost Index and Occupational Employment Statistics.
- Federal Reserve — Survey of Consumer Finances and inflation expectations.
- Society for Human Resource Management (SHRM) — annual compensation data reports.