Updated October 2026 with BLS and WTW data
Pay Raise Calculator
Got a raise, or about to ask for one? Enter your pay and the raise to see your new hourly, weekly, biweekly, monthly and yearly pay, and whether the raise actually keeps up with inflation.
- Hourly or salary
- Raise in %, $/hour or $/year
- Inflation check with the latest CPI
- Compared with typical 2026 raises
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Pay raise calculator
Results show gross pay before taxes
Enter your current pay and the size of your raise.
| Gross pay | Before | After raise | Difference |
|---|
Figures are gross pay before taxes and deductions, and assume the same hours every week for 52 weeks. Your paycheck will be lower after withholding.
Sources: Bureau of Labor Statistics CPI (released Oct. 14, 2026); WTW salary budget survey via SHRM (Aug. 18, 2026).
Inflation check
Is Your Raise Beating Inflation?
A raise only puts you ahead if your pay grows faster than prices. According to the Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers rose 3.7% over the 12 months ending September 2026, up from 3.4% for the 12 months ending in August. BLS published those figures on October 14, 2026.
The table shows what common raises are really worth at that inflation rate, using the standard formula: (1 + raise) ÷ (1 + inflation) − 1. The last column turns it into dollars on a $45,000 salary, measured in what the money buys.
| Raise | Real change at 3.7% inflation | Extra pay on $45,000 | Buying power change |
|---|---|---|---|
| 0% | −3.6% | +$0 | −$1,606 |
| 1% | −2.6% | +$450 | −$1,172 |
| 2% | −1.6% | +$900 | −$738 |
| 3% | −0.7% | +$1,350 | −$304 |
| 3.5% | −0.2% | +$1,575 | −$87 |
| 3.7% | 0.0% | +$1,665 | $0 |
| 4% | +0.3% | +$1,800 | +$130 |
| 5% | +1.3% | +$2,250 | +$564 |
| 6% | +2.2% | +$2,700 | +$998 |
| 8% | +4.1% | +$3,600 | +$1,866 |
| 10% | +6.1% | +$4,500 | +$2,734 |
Gross pay. Real change compares your new pay with prices 12 months later.
The CPI is a national average, so your own costs can rise faster or slower depending on where you live and what you spend on. You can change the inflation rate in the calculator if you’d rather use a local figure.
Hourly raises
What $1 More an Hour Is Really Worth
Hourly raises are usually quoted in cents or dollars per hour, which makes them easy to underestimate. Multiply the raise by your weekly hours and 52 weeks to see the yearly total before taxes:
| Raise per hour | 20 hrs/week | 30 hrs/week | 40 hrs/week |
|---|---|---|---|
| $0.25 | $260 | $390 | $520 |
| $0.50 | $520 | $780 | $1,040 |
| $0.75 | $780 | $1,170 | $1,560 |
| $1.00 | $1,040 | $1,560 | $2,080 |
| $1.50 | $1,560 | $2,340 | $3,120 |
| $2.00 | $2,080 | $3,120 | $4,160 |
| $3.00 | $3,120 | $4,680 | $6,240 |
| $5.00 | $5,200 | $7,800 | $10,400 |
Raise × hours per week × 52 weeks. Gross pay before taxes.
“My yearly raise was 1.8%, which would be like 40 more bucks a month for me.”
Our take: Turning a percentage into monthly dollars is exactly how most people judge a raise, which is why the calculator shows the monthly change. Measured against prices, a 1.8% raise is worse than it sounds: with 3.7% inflation it’s a real cut of about 1.8%.
A $1 raise is worth $2,080 a year to a full-time worker but $1,040 to someone working 20 hours a week. That’s worth remembering if you’re comparing a raise with a shift change or a job offer with different hours.
Convert any wage to weekly, biweekly, monthly and yearly pay in seconds.
Quick reference
Percentage Raises on Common Hourly Wages
New hourly rate after a 3%, 5% or 10% raise, with the yearly gain for a 40-hour week in brackets:
| Current wage | 3% raise | 5% raise | 10% raise |
|---|---|---|---|
| $15 | $15.45 (+$936/yr) | $15.75 (+$1,560/yr) | $16.50 (+$3,120/yr) |
| $16 | $16.48 (+$998/yr) | $16.80 (+$1,664/yr) | $17.60 (+$3,328/yr) |
| $17 | $17.51 (+$1,061/yr) | $17.85 (+$1,768/yr) | $18.70 (+$3,536/yr) |
| $18 | $18.54 (+$1,123/yr) | $18.90 (+$1,872/yr) | $19.80 (+$3,744/yr) |
| $20 | $20.60 (+$1,248/yr) | $21.00 (+$2,080/yr) | $22.00 (+$4,160/yr) |
| $22 | $22.66 (+$1,373/yr) | $23.10 (+$2,288/yr) | $24.20 (+$4,576/yr) |
| $25 | $25.75 (+$1,560/yr) | $26.25 (+$2,600/yr) | $27.50 (+$5,200/yr) |
| $30 | $30.90 (+$1,872/yr) | $31.50 (+$3,120/yr) | $33.00 (+$6,240/yr) |
Yearly gain assumes 2,080 hours (40 hours × 52 weeks).
The formula
How the Math Works
New pay = current pay × (1 + raise % ÷ 100)
Raise % = (new pay − old pay) ÷ old pay × 100
The calculator turns everything into a yearly figure first, then breaks it back down. For hourly workers, yearly pay is your hourly rate × hours per week × 52 weeks. A dollars-per-hour raise adds the extra amount × hours × 52, and a dollars-per-year raise simply adds to the total.
Here’s a quick example. At $17.50 an hour and 40 hours a week, you earn $36,400 a year. A 4% raise takes you to $18.20 an hour, or $37,856 a year. That’s an extra $1,456 a year, about $56 more every two weeks before taxes.
All results are gross pay, before federal and state taxes, Social Security, Medicare, benefit deductions and anything else your employer withholds, so the change in your paycheck will be smaller.
Benchmarks
What’s a Typical Raise Right Now?
Employers plan raises around a salary increase budget. In WTW’s survey of U.S. companies, reported by SHRM on August 18, 2026, salary increase budgets averaged 3.5% in 2026 and are expected to average 3.4% in 2027. That’s why the calculator uses 3.5% as its default benchmark.
“When review season rolled around, my manager literally told me I exceeded every target they set. My reward? A massive 3.2% raise. With inflation, I was basically making less than the year before”
Our take: The post, titled “The 3% annual raise vs the 25% job hop,” drew more than 1,100 upvotes, and the frustration is easy to check: at 3.7% inflation, a 3.2% raise is a real pay cut of about 0.5%. If you’re weighing an outside offer, enter it in the calculator as a raise in dollars per year to see the percentage and what it means after inflation.
Put those two numbers next to inflation and the squeeze is clear: an average 2026 budget of 3.5% sits just under the 3.7% CPI increase. A raise at the budget average would leave a typical worker slightly behind on buying power.
A budget is an average across a whole company, not a promise to each person. Individual raises land above or below it, and budgets differ by industry. Our guide on how to ask for a raise breaks down 2026 merit figures and where retail sits.
Next steps
Turn the Result Into a Raise Request
A specific figure is easier to defend than a vague request. Use the calculator to build your ask before the conversation:
- Find your floor. Enter your pay with a 3.7% raise. That’s the raise that only keeps your buying power level.
- Check the typical raise. Compare your number with the 3.5% average budget so you know whether you’re asking for more than most.
- Set your ask. Pick the number you can back up with results, added duties or posted pay for similar roles nearby, and note it per hour and per year.
- Know the cost to your employer. If you’re hourly, the yearly figure for 40 hours shows your manager exactly what they’re approving.
If you’re paid hourly, ask in dollars per hour. Salaried workers usually ask in percentages. Comparing an outside offer? Put both rates in the calculator first; our In-N-Out starting pay breakdown shows how posted pay ranges can vary by state. And if you decide to look elsewhere, brush up on the most common interview questions before you apply.
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FAQ
Frequently Asked Questions
How do I calculate a pay raise percentage?
Subtract your old pay from your new pay, divide by your old pay and multiply by 100. Going from $17.50 to $18.20 an hour is a $0.70 raise, which is 4%.
How much is a 3% raise on $20 an hour?
A 3% raise on $20 an hour is $0.60, for a new rate of $20.60. At 40 hours a week, that’s $1,248 more a year before taxes.
How much is a $1 an hour raise per year?
At 40 hours a week for 52 weeks, a $1 raise is $2,080 a year before taxes. At 30 hours a week it’s $1,560, and at 20 hours it’s $1,040.
Is a 3% raise good?
It’s close to typical. WTW reported 2026 salary increase budgets averaging 3.5%. But with prices up 3.7% over the 12 months to September 2026, a 3% raise leaves you with about 0.7% less buying power.
How much of a raise do I need to keep up with inflation?
At least the current inflation rate. With CPI up 3.7% over the year to September 2026, you’d need a raise of 3.7% or more for your pay to buy as much as it did a year earlier.
Does this calculator show take-home pay?
No. It shows gross pay before taxes and deductions. Your take-home pay depends on your tax situation, state and benefits, so your actual paycheck will be lower.