Free Calculator
What's Your Raise Really Worth?
Enter your salary and raise to see what your salary increase is actually worth. We calculate your after-tax take-home difference, adjust for inflation, and show whether you're gaining purchasing power or just keeping up.
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How to Calculate a Pay Raise
To calculate a pay raise percentage: (New Salary − Old Salary) ÷ Old Salary × 100. For example, going from $80,000 to $83,200 is a 4% raise. But that's just the gross number — your actual raise after taxes is lower because the increase is taxed at your marginal rate, not your average rate.
To find your real raise after taxes and inflation, you need to: (1) compute taxes at both your old and new salary, (2) subtract the difference in taxes from your gross raise to get your after-tax raise, then (3) subtract the purchasing power lost to inflation since your last raise. The result is your real raise — and it's often much smaller than the headline number.
How This Pay Raise Calculator Works
Most salary increase calculators just multiply your salary by a percentage. This one goes further. It computes your actual federal, state, and FICA taxes at both your old and new salary, then shows you the real take-home difference. That matters because your raise is taxed at your marginal rate, not your average rate.
After-tax raise: We run a full tax computation for both salaries using 2026 brackets and rates (including provisions from the One Big Beautiful Bill Act), then diff the results. The difference is your actual take-home raise, which is always less than the gross raise.
Inflation adjustment: A raise that doesn't beat inflation is effectively a pay cut. We use actual historical CPI-U data from the Bureau of Labor Statistics for each year since your last raise — not a single flat rate. This matters because recent inflation varied wildly (8.0% in 2022, 4.1% in 2023, 2.9% in 2024). Someone who hasn't had a raise in 3 years experienced ~10% cumulative inflation, not the ~7.5% a flat 2.5% rate would suggest. We apply this to your previous take-home pay to calculate how much of your raise just keeps you even, and how much is a real gain.
Income percentile: Using Census PUMS microdata, we show where your old and new salary rank among all U.S. households, so you can see whether your raise meaningfully changed your position.
Benchmark comparison: The average merit raise in 2026 is projected at 3.5% (source: WTW and Mercer salary surveys). We compare your raise against this benchmark to give you context.
Frequently Asked Questions
- Is a 3% raise good?
- A 3% raise roughly matches the average merit increase (3.5% in 2026). Whether it's "good" depends on inflation. If CPI is 2.5%, a 3% raise gives you about 0.5% in real purchasing power after inflation, before taxes take their cut. Use the calculator above to see your exact after-tax, after-inflation number.
- Is not getting a raise the same as a pay cut?
- Effectively, yes. If inflation is 2.5% and your salary stays flat, your purchasing power drops by 2.5%. Over five years of zero raises with 2.5% annual inflation, you'd need a 13.1% raise just to get back to where you started.
- How much of my raise goes to taxes?
- Your raise is taxed at your marginal rate, not your average rate. For someone earning $80,000 (single), a raise is taxed at roughly 22% federal + state tax + 7.65% FICA. The calculator above shows your exact marginal rate based on your salary, state, and filing status.
- Will a raise push me into a higher tax bracket?
- Tax brackets are progressive, meaning only the income within each bracket is taxed at that rate. A raise might push part of your income into the next bracket, but it won't make your entire salary taxed at a higher rate. You always take home more money with a raise.
- What is the average raise in 2026?
- The average merit increase is projected at 3.5% for 2026 (source: WTW and Mercer salary surveys), with total compensation increases (including promotions) averaging slightly higher. This varies by industry: tech and financial services tend higher, healthcare slightly lower. Job-switching typically yields 10% to 20%.
- Did my raise keep up with inflation?
- It depends on how long it's been since your last raise. The current trailing rate is about 2.5%, but if it's been 2-3 years, you need to account for the cumulative effect — including 2022's 8% spike. The calculator above uses actual year-by-year BLS inflation data and accounts for taxes, so it gives you the precise answer.
- How much should I ask for in a raise?
- To genuinely improve your financial position, aim for at least inflation plus 1% to 2% (so 3.5% to 4.5% in the current environment). Promotion-level raises average 8.5%. If you're considering switching jobs, the typical bump is 10% to 20% or more. Use the "What raise should I ask for?" section of the calculator above to find the exact percentage you need for a specific monthly gain.
- What raise do I need to keep up with inflation?
- More than you might think. Because your raise is taxed at your marginal rate, you need a raise that's higher than the inflation rate to actually break even. For example, with 2.5% inflation and a 30% marginal tax rate, you need roughly a 3.6% raise just to maintain your purchasing power. The exact number depends on your salary, state, and filing status.
- What if I haven't had a raise in 2 or 3 years?
- The longer it's been since your last raise, the more inflation has eroded your purchasing power. Use the 'Time Since Last Raise' input to tell the calculator how many years it's been. It compounds the annual inflation rate over that period — for example, 2 years at 2.5% inflation means 5.1% total erosion, not just 2.5%. This means you need a bigger raise just to break even.