How a pay raise is calculated
A percentage raise multiplies your current pay by the raise rate and adds it back:
New pay = Current pay × (1 + Raise %)
A $60,000 salary with a 5% raise gains $60,000 × 0.05 = $3,000, for a new salary of $63,000. A flat-dollar raise is even simpler — you just add the amount to your current pay, and the calculator reports the equivalent percentage.
What it looks like per paycheck
Annual figures are easy to compare, but you feel a raise paycheck by paycheck. The calculator splits the increase across your pay frequency — divide the annual raise by the number of pay periods to see the per-check bump:
Raise per paycheck = Annual raise ÷ Pay periods per year
That same $3,000 raise is about $115 more per biweekly paycheck (26 per year) before taxes — useful for budgeting the part you'll actually take home.
Gross vs. take-home
These results are gross — before tax. Because income tax and FICA take a share, your take-home increase is smaller than the gross raise. And thanks to marginal tax brackets, a raise never lowers your take-home pay; only the income above each bracket threshold is taxed at the higher rate. To see the net figure, run your new salary through the paycheck calculator.
Frequently asked questions
How do I calculate a pay raise?
Multiply your current pay by the raise percentage to get the increase, then add it to your current pay. A $60,000 salary with a 5% raise gains $3,000, for a new salary of $63,000. For a flat-dollar raise, simply add the amount to your current pay.
How do I find the percentage of a raise?
Divide the dollar increase by your old pay and multiply by 100. If your salary rises from $60,000 to $63,000, that is a $3,000 increase ÷ $60,000 × 100 = 5%. Switch this calculator to a flat-dollar raise and it shows the equivalent percentage for you.
Is the new pay before or after taxes?
This calculator works with gross pay — the amount before taxes and deductions. Your take-home increase will be smaller because part of any raise goes to income tax and FICA. To see the after-tax figure, run the new salary through a paycheck calculator.
Does a raise push me into a higher tax bracket and cost me money?
No. The U.S. uses marginal tax brackets, so only the portion of income above each threshold is taxed at the higher rate. A raise always leaves you with more money after tax — moving into a higher bracket never reduces your take-home pay.
How does my raise look per paycheck?
Divide the annual increase by the number of paychecks you receive in a year — for example 26 for biweekly pay or 24 for semi-monthly. Choose your pay frequency above and the calculator splits the raise into a per-paycheck amount.
Disclaimer: Results are gross-pay estimates before taxes and deductions. They are for educational purposes only and are not financial advice.