Pay Raise Calculator
See what a pay rise is worth — as a percentage, in dollars or pounds per month, and whether it actually beats inflation.
Pay raise calculator
New salary
$57,750/yr
+$2,750/yr (+5.00%)
Quick answer: a 5% raise on $55,000 gives $57,750 — an extra $2,750 a year, or about $229 a month before tax. With 3% inflation, your real raise is 2%.
Pay raise formulas
- New salary = current salary × (1 + raise % ÷ 100)
- Raise % = (new salary − current salary) ÷ current salary × 100
- Real raise % = raise % − inflation %
What counts as a good raise?
In both the US and UK, annual cost-of-living raises have typically landed near 3–4%. Anything below the current inflation rate is effectively a pay cut, even though the number on your contract goes up. Internal promotions usually carry 10–20%; switching employer often pays more than an internal rise.
Frequently asked questions
How do I calculate a 5% raise?
Multiply your salary by 1.05. On $55,000 that is $57,750.
Is a 3% raise good?
It roughly tracks inflation in an average year. Whether it is good depends on inflation where you live and your performance.
How do I ask for a raise?
Bring evidence: market rate for the role, your measurable results and any extra scope you have taken on. Quote a range, not a single number.
Does a raise change my tax bracket?
Only the extra income is taxed at the higher rate — a raise never reduces your take-home pay in a progressive tax system.