Comprehensive Guide
Learn more in our Personal Finance Guide.
How it works
A pay raise percentage is the size of an increase expressed against current pay: moving from $62,000 to $66,500 is a 7.26% raise carrying $4,500 a year and $375 a month. This calculator reads raises the way offers actually arrive — as two salaries, old and new — and converts the pair into the percentage, the dollars, the monthly difference and the real increase left after inflation. The real figure is the one to judge: a 5% raise during 3% inflation lifts purchasing power by only about 1.94%, and anything below the inflation rate is a pay cut wearing good news. Percentages also compound across years — hold a steady raise rate for a decade and the growth multiplies, which is why early-career percentage wins outweigh late-career ones. Typical context for sizing an offer: merit increases cluster around 3-5%, promotions land higher, and switching employers has historically commanded 8-15%. An offered percentage sitting below the market rate for the same title elsewhere is the quiet signal to start interviewing.Formula
Raise % = (new - current) / current x 100 | Real % = (1 + g) / (1 + inflation) - 1
Tips
- Judge the real raise: 5% during 3% inflation is about 1.94% in purchasing power.
- Merit raises cluster at 3-5%; switching jobs historically brings 8-15%.
- Raises compound — a steady 5% overtakes a one-off 10% within about two years.
- Negotiate the percentage on market data for the title, not on gratitude.
- Ask what the raise does to the bonus base, not just to the salary line.
Frequently asked questions
What percentage raise should I ask for?
Anchor above your target: request 10-20% when changing scope or titles, and 5-8% for a strong merit case at review, backed by market data for the role. Expect to settle between the ask and the offer — asking for exactly what you need leaves nothing to concede.
How do I calculate a raise percentage between two salaries?
Subtract the old from the new, divide by the old, multiply by 100: ($66,500 - $62,000) / $62,000 = 7.26%. The reverse question — what new salary a target percentage implies — multiplies instead.
Is a 5% raise good?
Above the typical merit band of 3-5%, so yes on paper — but judge it against inflation. During 3% inflation a 5% raise is a 1.94% real gain; during 6% inflation the same raise is a real cut. Market movement matters too: if the role's going rate rose 8%, falling short is a quiet demotion.
How does inflation affect my raise?
Real raise ≈ nominal raise minus inflation, refined by dividing: (1 + g)/(1 + f) - 1. A 4% raise during 3% inflation is a 0.97% purchasing-power gain. Employers quoting 'raises matched to inflation' are offering a flat real wage — worth knowing before celebrating.
What is the difference between a merit raise and a promotion raise?
Merit raises reward performance inside the same role and typically run 3-5%; promotion raises reprice you for a larger role and typically run 8-12%. Accepting extra duties without the repricing is the classic way to fund someone else's budget.