Pay Raise Calculator
See exactly how a raise changes your paycheck — annual, monthly, biweekly, and hourly. Compare two offers or check if your raise keeps up with inflation.
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How to Use This Calculator
Tab "Raise Impact"
Enter your current annual salary and raise percentage, then choose your pay frequency (monthly, biweekly, or weekly). The calculator shows your new salary, annual increase, monthly increase, and per-paycheck increase.
Tab "After Inflation"
Enter your raise percentage and the current inflation rate. The calculator reveals how much of your raise is real purchasing-power gain versus how much is eaten by rising prices. If your raise is below inflation, you are effectively taking a pay cut.
Tab "Raise vs New Job"
Enter your current salary, the raise your employer is offering, and the new job salary. Optionally include the annual commute cost difference for the new role. The calculator shows which option pays more and by how much per year and per month.
The Formulas
New salary = Current salary × (1 + Raise%)
Annual increase:
Annual increase = Current salary × Raise%
Per-paycheck increase:
Per paycheck = Annual increase ÷ pay periods per year
(Monthly = 12, Biweekly = 26, Weekly = 52)
Real raise (inflation-adjusted):
Real raise = (1 + Raise%) ÷ (1 + Inflation%) − 1
Real annual gain:
Real annual gain = Current salary × Real raise%
All calculations use standard financial mathematics. No country-specific tax rates are applied. Results are pre-tax estimates.
Worked Examples
Example 1 — $65,000 salary with a 5% raise
An employee earning $65,000 per year receives a 5% raise.
Calculation: $65,000 × 0.05 = $3,250 per year. Divided by 12 months = $270.83 per month. The new annual salary is $65,000 + $3,250 = $68,250.
Example 2 — 5% raise with 3% inflation
The same employee wants to know how much purchasing power the 5% raise actually adds when inflation is running at 3%.
Calculation: (1.05 ÷ 1.03) − 1 = 0.01942, or about 1.94%. Of the $3,250 nominal increase, only about $1,262 represents real purchasing-power gain. The rest offsets inflation.
Example 3 — $68,250 raise vs $75,000 new job with $4,000 commute cost
After the 5% raise, the employee has a $68,250 salary. A competing company offers $75,000 but the new commute adds $4,000 per year.
Even after accounting for the extra $4,000 commute, the new job nets $71,000 versus $68,250 — a $2,750 per year advantage, or about $229 per month. The employee should also weigh benefits, job security, and growth potential.