A raise sounds simple: your salary goes up by a percentage. But what matters is how much more you take home each month, and whether the raise keeps up with rising prices. This calculator shows the new salary, the monthly difference, and the real raise after inflation.
How it works
New salary = current salary × (1 + raise). A 5% raise on $60,000 is $3,000, for a new salary of $63,000, or $250 more a month before tax.
The real raise adjusts for inflation: (1 + raise) ÷ (1 + inflation) − 1. A 5% raise with 3% inflation is a real raise of about 1.94%. If inflation is higher than your raise, your pay buys less than before.
The hourly equivalent divides by 2,080 hours, a standard full-time year of 40 hours for 52 weeks. It's useful for comparing a salary with hourly or contract rates.
Tax takes a share of the increase, so the change in take-home pay is smaller than the gross figure, especially if the raise moves part of your income into a higher bracket.
A worked example
On a $60,000 salary, a 5% raise adds $3,000 a year, for a new salary of $63,000. That's $250 a month before tax, or $30.29 an hour. With 3% inflation, the real raise is 1.94%, so it beats inflation.
Questions people ask
How do I calculate a percentage raise?
Multiply your current salary by the raise percentage and add it on. A 4% raise on $50,000 is $2,000, for $52,000.
How do I work out what percentage my raise was?
Subtract the old salary from the new one, divide by the old salary and multiply by 100. From $60,000 to $63,000 is a 5% raise.
What is a real raise?
Your raise after adjusting for inflation. It shows whether your pay buys more or less than before.
What's a typical annual raise?
It varies by country, industry and year, and tends to rise and fall with inflation. Compare your raise with local inflation and with what your role pays elsewhere, not a single benchmark.
How much of my raise will I actually take home?
Less than the gross figure, because the extra income is taxed at your marginal rate. Use your country's tax calculator on this site to see the change in take-home pay.