How to calculate a raise
Example: a 4% raise on $60,000 a year is $60,000 × 1.04 = $62,400, an extra $2,400 a year, $200 a month, or about $1.15 an hour at 40 hours a week.
Finding the percent: going from $25 to $27 an hour is ($27 − $25) ÷ $25 = 8%, worth $4,160 a year at 40 hours a week.
What a raise is worth after tax and inflation
The extra pay is taxed at your top rate, so a raise of $2,400 might add $1,700 to $1,900 to your take-home pay depending on your bracket and state. The paycheck calculator shows the exact amount per paycheck. A raise also has to beat inflation to raise your buying power; the salary inflation calculator checks that over several years.
Typical merit raises in the U.S. have run about 3% to 4% a year recently. Changing jobs often brings a bigger jump, commonly 10% or more.
Frequently asked questions
How much is a 3% raise?
3% of your current pay. On $50,000 a year it's $1,500, making $51,500, or about $0.72 more an hour at 40 hours a week.
How do I calculate my raise percentage?
Subtract the old pay from the new pay, divide by the old pay, and multiply by 100. $20 to $21.50 an hour is a 7.5% raise.
What is a good raise?
One that beats inflation by a margin. A 3% to 5% raise is typical for strong performance; promotions and job changes often bring 10% to 20%.
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