Pay Raise Calculator

See what a raise is worth per year, per month and per hour

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Pay Raise Calculator — Complete Guide

A salary negotiation usually ends with one number: the new salary. But that single figure hides several more useful ones — what the raise is worth per month, per hour, and what it means after tax.

What this calculator does

Enter your current salary and choose how the raise was quoted: as a percentage, as a flat amount, or as the new salary itself. The calculator returns the new salary, the annual increase, the percentage, and the monthly and hourly equivalents.

The formula

new salary = current × (1 + percent ÷ 100)
percent = (new − current) ÷ current × 100
hourly = annual ÷ 2,080

The 2,080 figure is 40 hours × 52 weeks — the standard full-time year used in most salary conversions.

A worked example

A $60,000 salary with a 5% raise: new salary = 60,000 × 1.05 = $63,000. The raise is $3,000 a year, $250 a month, or about $1.44 an hour.

CurrentRaiseNew salaryPer month
$50,0003%$51,500+$125
$60,0005%$63,000+$250
$85,0008%$91,800+$567

What to check before you accept

Frequently Asked Questions

How do I calculate a pay raise percentage?

Divide the raise by your current salary, then multiply by 100. A $3,000 raise on a $60,000 salary is 3,000 ÷ 60,000 × 100 = 5%.

Is a 5% raise good?

It depends on inflation. If prices rose 4% that year, a 5% raise is only a 1% real gain. Historically many employers budget 3-4% for annual increases.

How much is a raise after tax?

Less than the headline. Your marginal tax rate applies to the extra income, so at a 22% marginal rate a $3,000 raise adds about $2,340 to take-home pay before other deductions.

Last reviewed: October 5, 2026 · How we calculate · Sources: US Bureau of Labor Statistics, IRS