How do you calculate a pay raise percentage?
Divide the raise by your old salary. Going from $75,000 to $80,000 is a $5,000 raise, and $5,000 ÷ $75,000 is 6.67%.
Raise % = (new salary − old salary) ÷ old salary × 100To go the other way, multiply your salary by 1 plus the raise as a decimal. A 4% raise is your salary × 1.04. Choose how you want to enter it: a percent, a dollar amount, or the new salary from an offer letter.
How much of a raise do you keep after taxes?
You keep what's left after tax at your top rate, because a raise lands on top of your income. Using 2026 federal figures, here's what a single filer paid biweekly keeps, before state tax and with no pre-tax deductions.
| Salary | 3% raise | 5% raise | 10% raise |
|---|---|---|---|
| $40,000 | $964 | $1,607 | $3,214 |
| $60,000 | $1,446 | $2,411 | $4,821 |
| $75,000 | $1,583 | $2,638 | $5,276 |
| $100,000 | $2,111 | $3,518 | $7,035 |
| $150,000 | $3,076 | $5,126 | $10,253 |
State tax reduces this further where it applies, and the calculator takes a rate. If you raise your 401(k) contribution at the same time, take-home rises less, but that money is still yours.
Can a raise push you into a higher tax bracket and cost you money?
No. A higher bracket only applies to the income inside that bracket. A single filer earning $64,500 who gets a raise to $68,500 crosses into the 22% bracket, and still takes home $3,014 more. The first part of that raise is taxed at 12% and the rest at 22%.
There are real exceptions at the edges, and they come from programs rather than tax brackets. Benefits such as health coverage subsidies can phase out as income rises, which can take back part of a raise. This calculator doesn’t model those, so a benefits counselor or tax professional can help if you rely on one.
Does your raise beat inflation?
Compare your raise with the rise in prices. A 3% raise with 3.5% inflation is a real pay cut of about 0.5%, even though your paycheck grew. The calculator works this out with compounding, and its inflation rate is an input you control.
Real raise = (1 + raise) ÷ (1 + inflation) − 1To check whether your pay has kept up over several years, use the salary check in the inflation calculator, which uses official Consumer Price Index data.
How much does one extra percentage point matter?
More than it seems, because each raise builds on the last. Starting at $60,000, a yearly 4% raise instead of 3% adds up to about $174,462 more in gross pay over 20 years.
| Yearly raise | After 5 years | After 10 years | After 20 years | Total earned over 20 years |
|---|---|---|---|---|
| 2% | $66,245 | $73,140 | $89,157 | $1,457,842 |
| 3% | $69,556 | $80,635 | $108,367 | $1,612,222 |
| 4% | $72,999 | $88,815 | $131,467 | $1,786,685 |
| 5% | $76,577 | $97,734 | $159,198 | $1,983,957 |
This is why negotiating a starting salary or a raise can be worth more than a one-time bonus of the same size. A higher base usually carries into later raises, and into anything set as a percent of pay, such as a retirement match. These figures are arithmetic rather than a forecast of your own career.
How do you compare a raise with a new job offer?
Start with take-home and then add the rest of the package. Enter the offer as a new salary to see the change in each paycheck, then look at what the salary figure leaves out:
- Health insurance. Enter the new premium under More options, since a higher premium can use up part of a raise.
- Retirement match. An employer match is pay too. The 401(k) calculator shows what it’s worth over time.
- Where you live. A move can change your state tax rate, and the what-if above shows the effect of a state with no wage tax.
- Costs of the job. Commuting, parking, and childcare change what a raise really gives you.
What is the best use of a raise?
The first raise is a rare chance to save more without feeling a pay cut. These tools can help you see the numbers:
- Check whether you’re getting your full employer match in the 401(k) calculator.
- See how much faster your debt clears in the debt payoff calculator.
- See your full pay stub, including benefits, in the paycheck calculator.
Comparing job offers? A salary is only part of it. Differences in health premiums, retirement match, and commute costs can outweigh a raise, so put them side by side before you decide.
Common questions
Is a 3% raise good?
It depends mostly on inflation and your field. If prices rose more than 3%, your buying power fell. Enter recent inflation to see your real raise.
How much is a $5,000 raise per paycheck?
For a single filer earning $75,000 paid biweekly, about $135.28 per check after federal tax and FICA, before state tax.
When will I see the raise in my paycheck?
That depends on your employer’s payroll schedule and the effective date. Check your first pay stub after that date.
Why is my raise smaller on my pay stub than this estimate?
Pre-tax contributions set as a percentage rise with your pay, benefit costs may change, and withholding follows your W-4. Enter those details for a closer estimate.
Should I count a bonus as a raise?
No. A raise usually repeats each year and builds on itself, while a bonus is one-time. Use the bonus tax calculator for a bonus.
Sources
- Rev. Proc. 2025-32: 2026 tax rates and standard deduction · Internal Revenue Service
- Consumer Price Index, 1913 onward · Federal Reserve Bank of Minneapolis
- Topic no. 751, Social Security and Medicare withholding rates · Internal Revenue Service