How to Calculate a Pay Raise
The pay raise calculator formula is simple: New Salary = Current Salary x (1 + Raise% / 100)
Example: 5% Raise on $50,000
- Current salary: $50,000 per year
- Raise percentage: 5%
- Increase: $50,000 x 0.05 = $2,500
- New salary: $50,000 + $2,500 = $52,500
- Monthly increase: $2,500 / 12 = $208.33
What Is a Typical Pay Raise?
- Cost-of-living: 2-3% — keeps up with inflation
- Merit-based: 3-5% — based on performance
- Promotion: 10-20% — higher role
- Market adjustment: 5-15% — below market rate correction
Pay Raise Quick Reference
| Current Salary | 3% Raise | 5% Raise | 10% Raise |
|---|---|---|---|
| $30,000 | $30,900 | $31,500 | $33,000 |
| $50,000 | $51,500 | $52,500 | $55,000 |
| $75,000 | $77,250 | $78,750 | $82,500 |
| $100,000 | $103,000 | $105,000 | $110,000 |
How to Negotiate a Higher Raise
- Research market rates — Use Glassdoor, Payscale, LinkedIn Salary
- Document achievements — Keep a list of projects and results
- Time your request — After a big win or during review season
- Aim high — Ask 5-10% above your target