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● Free HR tool · USA
Pay Raise Calculator 2026
This free pay raise calculator shows your new salary or hourly wage after a raise, or works out your raise percentage from your old and new pay. It also shows the monthly difference and how your pay grows over the years.
- Salary or hourly wage
- Raise % to new pay, or new pay to raise %
- Shows growth over 1 to 10 years
Calculate your pay raise
Enter your current pay and your raise or new pay.
What do you want to find?
Salary is
$
%
Projects your salary if you get the same raise every year.
Your result is ready
Share a few details with your work email to see your result. We will also send you useful HR resources.
How do you calculate a raise? Multiply your current pay by (1 + raise % ÷ 100) to get your new pay. To find the raise percentage, subtract old pay from new pay, divide by old pay and multiply by 100. A 3% raise on $50,000 is $1,500, for a new salary of $51,500.
How to calculate a pay raise
A raise is the change in pay shown as a percentage of your old pay. The pay raise calculator uses these two formulas.
Raise % = (New pay − Old pay) ÷ Old pay × 100
New pay = Old pay × (1 + Raise % ÷ 100)
Worked example: raise percentage
Your salary goes from $72,000 to $75,600. The increase is $3,600. Divide $3,600 by $72,000 and multiply by 100: your raise is 5%.
Worked example: hourly raise
You earn $22.50 an hour and get a 4% raise. Multiply $22.50 by 1.04: your new rate is $23.40 an hour. At 40 hours a week that is $1,872 more a year before taxes.
How to use the pay raise calculator
- Choose what you want to find: your new pay from a raise percentage, or the raise percentage from your new pay.
- Pick yearly, monthly or hourly pay. For hourly pay, enter the hours you work each week.
- Enter your current pay and the raise percentage or your new pay.
- Click Calculate to see your new pay, the yearly and monthly difference and how your pay grows over several years.
Raise chart: new salary after common raises
| Current salary | 2% raise | 3% raise | 3.5% raise | 4% raise | 5% raise | 10% raise |
|---|---|---|---|---|---|---|
| $40,000 | $40,800 | $41,200 | $41,400 | $41,600 | $42,000 | $44,000 |
| $50,000 | $51,000 | $51,500 | $51,750 | $52,000 | $52,500 | $55,000 |
| $60,000 | $61,200 | $61,800 | $62,100 | $62,400 | $63,000 | $66,000 |
| $75,000 | $76,500 | $77,250 | $77,625 | $78,000 | $78,750 | $82,500 |
| $90,000 | $91,800 | $92,700 | $93,150 | $93,600 | $94,500 | $99,000 |
| $100,000 | $102,000 | $103,000 | $103,500 | $104,000 | $105,000 | $110,000 |
| $120,000 | $122,400 | $123,600 | $124,200 | $124,800 | $126,000 | $132,000 |
| $150,000 | $153,000 | $154,500 | $155,250 | $156,000 | $157,500 | $165,000 |
New annual salary before tax after each raise.
Hourly raise chart
| Hourly pay | 3% raise | 5% raise | 10% raise | Yearly pay now (40 hrs/week) |
|---|---|---|---|---|
| $15.00 | $15.45 | $15.75 | $16.50 | $31,200 |
| $18.00 | $18.54 | $18.90 | $19.80 | $37,440 |
| $20.00 | $20.60 | $21.00 | $22.00 | $41,600 |
| $25.00 | $25.75 | $26.25 | $27.50 | $52,000 |
| $30.00 | $30.90 | $31.50 | $33.00 | $62,400 |
| $40.00 | $41.20 | $42.00 | $44.00 | $83,200 |
What is the average raise in 2026?
Mercer’s US compensation planning survey puts 2026 salary increase budgets at 3.5% in total, including 3.3% for merit increases. That is an average across employees. High performers usually get more than the budget average, and a promotion or job change often brings a bigger jump.
Compare that with India, where average hikes run close to 9% (see the salary hike calculator), and the UK, where pay awards are centred around 3%.
Merit increase vs cost of living raise
| Type of raise | Based on | Who gets it |
|---|---|---|
| Merit increase | Individual performance rating | Varies by employee |
| Cost of living adjustment (COLA) | Inflation or local costs | Usually everyone, same % |
| Promotion increase | Move to a bigger role | Promoted employees |
| Market adjustment | Pay below the market rate for the role | Selected roles or people |
Gross raise vs take-home pay
The calculator shows gross pay, before federal and state income tax, FICA and benefit deductions. Your take-home pay rises by less than the raise percentage. Check your next pay stub to see the net change.
Sources
Planning merit increases this cycle?
Peoplebox connects performance reviews, goals and calibration, so merit decisions rest on consistent, documented performance data.
Related HR guides
- Performance appraisal: process, methods and examples
How appraisal ratings are set before hikes are decided.
- Employee performance reviews: process, types and examples
Run reviews that give pay decisions a fair basis.
- Performance calibration
Align ratings across managers before raises are finalized.
- Talent retention strategies
Pay is one lever. These are the others that keep people.
More free HR tools
Free tools from the Peoplebox HR Toolkit for the rest of the employee lifecycle.
Frequently asked questions
How do I calculate a pay raise percentage?
Subtract your old pay from your new pay, divide by the old pay and multiply by 100. A salary that goes from $60,000 to $63,000 is a 5% raise: ($63,000 − $60,000) ÷ $60,000 × 100 = 5%.
How much is a 3% raise on $50,000?
A 3% raise on $50,000 is $1,500 a year, so your new salary is $51,500. That is $125 more a month before taxes.
How do I calculate a raise on an hourly wage?
Multiply your hourly rate by (1 + raise % ÷ 100). A 5% raise on $20.00 an hour gives $21.00 an hour. At 40 hours a week that is about $2,080 more a year.
What is the average raise in 2026?
Mercer reports that US employers budgeted a 3.5% total salary increase for 2026, including 3.3% for merit increases. Promotions and job changes often bring larger raises.
What is the difference between a merit increase and a cost of living raise?
A merit increase rewards individual performance and varies by person. A cost of living adjustment (COLA) is usually the same percentage for everyone and aims to keep pay in line with inflation. The calculator works the same way for both.
Is this pay raise calculator free?
Yes. The pay raise calculator is free. You share your name, work email and phone number once to see results.
Are my salary details stored?
No. The calculator runs in your browser, so salary figures are never sent anywhere. Only the name, work email and phone number you enter are shared with Peoplebox.