Raise Calculator
How This Calculator Works
New Salary = Current Salary x (1 + Raise% / 100)
Raise Amount = New Salary - Current Salary
Per Paycheck Increase = Raise Amount / Pay Periods per Year
After-Tax Raise ≈ Raise Amount x (1 - Marginal Tax Rate)A raise calculator helps you understand the real financial impact of a salary increase by breaking it down into practical terms: annual raise amount, per-paycheck increase, and most importantly, the after-tax value of your raise. This matters because your raise is taxed at your marginal tax rate — not your effective rate — so the take-home increase is always less than the gross raise amount.
Understanding the Calculation
The basic math is straightforward. If you enter a raise as a percentage, your new salary is calculated as: New Salary = Current Salary x (1 + Raise Percentage / 100). For example, a 5% raise on a $65,000 salary yields a new salary of $68,250 and a gross raise of $3,250 per year. You can also enter the raise as a new salary amount, and the calculator will work backwards to determine the percentage and annual raise amount.
To compute the per-paycheck increase, the annual raise is divided by the number of pay periods. If you are paid bi-weekly (26 paychecks per year), a $3,250 annual raise translates to approximately $125 more per paycheck before taxes.
Tax Impact Estimation
This is where the calculator provides unique value. Your raise is taxed at your marginal federal income tax rate — the rate that applies to the last (highest) dollar you earn. The calculator uses the current federal income tax brackets for your filing status to determine your marginal rate and estimate how much of your raise will go to federal income taxes.
For instance, if your new salary of $68,250 puts you in the 22% marginal bracket as a single filer, approximately $715 of your $3,250 raise goes to additional federal income tax, leaving you with about $2,535 after federal tax — or roughly $97.50 more per bi-weekly paycheck. Note that this estimate does not include state income taxes, Social Security tax (6.2%), or Medicare tax (1.45%), which would further reduce the take-home amount.
How to Use This Calculator
Enter your current annual salary, then specify your raise as either a percentage or a new salary amount. Select your pay frequency so the calculator can show you the per-paycheck impact. Choose your filing status for the tax estimate. The results update instantly, showing you both the headline raise figure and the practical after-tax reality.
Comparing Raise Scenarios
The bar charts provide visual context for your raise. The salary comparison chart shows your old salary alongside your new salary, making the increase tangible. The breakdown chart splits the raise into the portion you keep after taxes and the estimated tax cost. Use these visuals when negotiating — understanding the after-tax value of different raise percentages helps you set realistic expectations and negotiate from a position of knowledge.
Beyond the Paycheck
Remember that a raise has compounding effects over your career. A 5% raise this year means all future raises, bonuses, and percentage-based benefits are calculated from a higher base. Over a 30-year career, the difference between accepting a 3% raise versus negotiating a 5% raise in a single year can compound to tens of thousands of dollars in lifetime earnings. This is why salary negotiation at every opportunity is one of the highest-return financial activities you can undertake.
Frequently Asked Questions
Related Calculators
Salary to Hourly Calculator
Convert your annual salary to an hourly rate to understand your true wage.
Take-Home Pay Calculator
Calculate your actual take-home pay after all taxes and deductions.
Overtime Calculator
Estimate your overtime pay based on hourly rate and hours worked.
Inflation Calculator
See how inflation affects the purchasing power of your raise over time.
What You Should Know
Mastering Salary Negotiation: Getting the Raise You Deserve
Salary negotiation is consistently cited as one of the most impactful financial skills you can develop. Research from Carnegie Mellon University found that employees who negotiate their starting salary earn an average of $600,000 more over a 30-year career compared to those who accept the first offer. The same principle applies to annual raises — each successful negotiation raises the baseline for all future compensation.
Preparation Is Everything
Before any salary conversation, gather market data. Use resources like the Bureau of Labor Statistics Occupational Employment data, Glassdoor salary reports, Levels.fyi (for tech), and professional association surveys to understand the going rate for your role, experience level, and geographic area. Document your accomplishments with specific metrics: revenue generated, costs saved, projects completed, and any responsibilities you have taken on beyond your original job description.
The Negotiation Conversation
Frame the conversation around your value to the organization, not your personal financial needs. Lead with your accomplishments, present market data showing where your current salary falls, and propose a specific number or range (anchor high within reason). Practice your talking points beforehand and be prepared for pushback. If the employer cannot meet your salary request, negotiate for other forms of compensation: a signing bonus, additional vacation time, flexible work arrangements, professional development funding, or an accelerated review timeline.
Compounding Career Earnings
The most important aspect of a raise is not the immediate paycheck increase — it is the compounding effect over your career. Every future raise, bonus, and percentage-based benefit is calculated from your new, higher base salary. A single additional $3,000 negotiated today, with 3% annual raises, becomes worth over $140,000 in additional lifetime earnings over 30 years. This is why it is worth spending time understanding your raise in detail and negotiating with confidence.