How this pay raise calculator works
A percentage raise is calculated simply as new salary = current salary × (1 + raise %). The harder question is what the raise is really worth: dividing the increase by the hours you work gives the honest per-hour number, and comparing that against current inflation tells you whether your purchasing power grew. Use the toggle to work backwards from a target salary if you are negotiating.
Frequently asked questions
Is a 5% raise good?
A 5% raise is above the US market average for 2025–2026, where typical budget increases run around 3.5–4%. Inflation-adjusted, anything below the current CPI rate is effectively a pay cut, so 5% counts as a solid raise — and 7–10% is usually reserved for promotions or job switches.
How do I calculate a raise from salary to hourly?
Divide your annual salary by the hours you actually work per year. A $65,000 salary at 40 hours × 52 weeks = $31.25/hour. If you routinely work 50-hour weeks, your real rate is only $25/hour — which is why this calculator asks for your hours.
Should I think in gross or net?
Always negotiate in gross (pre-tax) figures. Remember that marginal tax rates apply: a $3,000 raise does not cost you $3,000 in extra taxes — typically you keep 70–80% of it depending on your bracket and state.