Making sense of a raise
Percentages hide the real number. "Four percent" sounds abstract; "$95 more every paycheck" is a decision you can feel. The stub converts your raise into the units you budget in — and works in reverse, so when HR announces your new salary you can instantly see what percentage they actually gave you.
Negotiating? Three anchors
- Know the inflation baseline. A raise that matches inflation keeps your buying power flat; anything below it is a real-terms pay cut, however it's framed.
- Percentages compound. An extra 1% negotiated today isn't one year's money — every future raise builds on the higher base. Over a decade, a single extra point at the right moment is worth thousands.
- Compare against switching. External offers commonly beat internal raises by a wide margin. Even if you'd rather stay, knowing your market rate turns the conversation from asking into pricing. If you're hourly, translate any offer through the hourly to salary calculator first so you're comparing the same units.
Frequently asked
How do I calculate a pay raise percentage?
New salary = current salary × (1 + raise ÷ 100). A 4% raise on $62,000 is $62,000 × 1.04 = $64,480 — an increase of $2,480 a year, about $207 a month, or $95 per biweekly paycheck.
What is a typical annual raise?
Ordinary cost-of-living or merit raises in the US commonly land around 3–5%, while promotions often bring more. Switching employers historically produces the largest jumps, frequently 10–20%.
Should I compare my raise to inflation?
Yes — that's what the calculator's real-terms line hints at. If your raise is 3% and inflation is 3%, your buying power is flat; a raise below inflation is a pay cut in real terms even though the number went up.
How do I figure out what percentage my raise was?
Use the second field: enter your new salary and the calculator works out the percentage — (new − old) ÷ old × 100.