How to calculate a pay raise
Enter your current annual salary and the raise percentage you've been offered. The calculator finds the raise amount, your new salary, and the extra per month so you can see the real difference in your budget.
The formula
Increase = Salary × raise% ÷ 100 · New salary = Salary + Increase · Extra/month = Increase ÷ 12
Worked example
A 5% raise on a $50,000 salary:
- Raise amount: $50,000 × 5 ÷ 100 = $2,500/year
- New salary: $52,500
- Extra per month (gross): ≈ $208
Check it beats inflation
A raise only increases your buying power if it's bigger than inflation. Your real raise is roughly the raise percentage minus the inflation rate. If prices rose 4% and your raise is 3%, you're about 1% worse off in real terms — so compare against current inflation before celebrating.
Common mistakes to avoid
Treating the gross monthly increase as take-home (tax reduces it). Ignoring inflation when judging whether a raise is "good." Comparing a one-off bonus to a permanent salary raise — they're not the same.
Frequently asked questions
What is a 5% raise on $50,000?
An extra $2,500 a year, for a new salary of $52,500 — about $208 more per month.
Is this before or after tax?
It works on gross salary. Your take-home increase will be a bit lower after taxes.
Does my raise beat inflation?
Only if it's higher than the inflation rate. A 3% raise during 4% inflation is a real-terms cut.
What's a "real" raise?
Roughly the raise percentage minus inflation — the change in your actual buying power.
How much is it per month?
Annual increase ÷ 12. A $2,500 raise is about $208/month before tax.
Is my data saved?
No. Everything runs in your browser; nothing is uploaded.