Pay Raise Calculator: Per Paycheck and After Inflation

How a pay raise is calculated

The calculator works in both directions.

If you know the percent, it finds your new pay.
New pay = current pay × (1 + raise percent ÷ 100)
If you know your new pay, it finds the percent. The difference is divided by your old pay, not your new pay.
Raise percent = (new pay − current pay) ÷ current pay × 100
It turns the raise into yearly, monthly and paycheck amounts. The yearly increase is divided by 12 for a month and by the number of paychecks you get in a year: 52 if you are paid weekly, 26 every two weeks, 24 twice a month or 12 monthly. For hourly pay, the yearly figure is your rate times your hours a week times 52.
It takes inflation off. Inflation is the rise in prices over the same year. Your new pay is divided by the rise in prices, then compared with your old pay.
Real raise = (1 + raise) ÷ (1 + inflation) − 1

Subtracting inflation from your raise gives nearly the same answer and is fine for a quick check: a 4% raise less 3.4% inflation is about 0.6%. The formula above gives 0.58%, which is the exact figure.

Worked examples

Each example uses inflation of 3.4%, the figure for the 12 months to August 2026.

A 4% raise on a $55,000 salary

You know the percent and want the new salary and what it adds to each paycheck.

Current pay$55,000 a year
New pay$57,200 a year
Raise4%
Increase a year$2,200
Increase a month$183.33
Increase per biweekly paycheck$84.62
Raise after 3.4% inflation0.58% ($319 a year)

An hourly rate going from $19.00 to $20.50

You know the new rate and want the percent. This worker does 40 hours a week.

Current pay$19.00 an hour
New pay$20.50 an hour
Raise7.89%
Increase a year$3,120
Increase a month$260.00
Increase per biweekly paycheck$120.00
Raise after 3.4% inflation4.35% ($1,718 a year)

A 2.5% raise on $72,000 when prices rose faster

The paycheck goes up, but the raise is smaller than inflation, so the real change is below zero.

Current pay$72,000 a year
New pay$73,800 a year
Raise2.5%
Increase a year$1,800
Increase a month$150.00
Increase per biweekly paycheck$69.23
Raise after 3.4% inflation−0.87% (−$627 a year)

What a raise is worth by salary

The extra pay each year, before tax, for common raise percents. Divide by 26 for a biweekly paycheck or by 12 for a month.

Increase in yearly pay before tax.
Current salary	2% raise	3% raise	4% raise	5% raise	7% raise	10% raise
$30,000	$600	$900	$1,200	$1,500	$2,100	$3,000
$35,000	$700	$1,050	$1,400	$1,750	$2,450	$3,500
$40,000	$800	$1,200	$1,600	$2,000	$2,800	$4,000
$45,000	$900	$1,350	$1,800	$2,250	$3,150	$4,500
$50,000	$1,000	$1,500	$2,000	$2,500	$3,500	$5,000
$55,000	$1,100	$1,650	$2,200	$2,750	$3,850	$5,500
$60,000	$1,200	$1,800	$2,400	$3,000	$4,200	$6,000
$70,000	$1,400	$2,100	$2,800	$3,500	$4,900	$7,000
$75,000	$1,500	$2,250	$3,000	$3,750	$5,250	$7,500
$80,000	$1,600	$2,400	$3,200	$4,000	$5,600	$8,000
$90,000	$1,800	$2,700	$3,600	$4,500	$6,300	$9,000
$100,000	$2,000	$3,000	$4,000	$5,000	$7,000	$10,000
$125,000	$2,500	$3,750	$5,000	$6,250	$8,750	$12,500
$150,000	$3,000	$4,500	$6,000	$7,500	$10,500	$15,000

Your raise after inflation

A raise only makes you better off if it is bigger than the rise in prices. The usual measure of prices in the United States is the Consumer Price Index for All Urban Consumers (CPI-U), published each month by the Bureau of Labor Statistics (BLS).

In its release for August 2026, the BLS reported that the all items index rose 3.4% over the last 12 months, before seasonal adjustment. The calculator starts with that figure. The BLS publishes a new one every month, so check its site and type in the latest number if it has changed.

At 3.4% inflation, a salary of $55,000 needs a raise of $1,870 a year to buy what it bought a year ago. Anything above that is a real raise. Anything below it is a real pay cut, even though your paycheck is bigger.

The CPI-U is an average across many households. Your own costs may have risen by more or less, depending on what you spend on rent, fuel and food. That is why the inflation box can be changed.

Hourly pay and paychecks

For hourly pay the calculator uses your hours a week for 52 weeks. At 40 hours that is 2,080 hours a year, so each extra $1 an hour is worth $2,080 a year and $80 per biweekly paycheck, before tax. If your hours change from week to week, enter your average.

The calculator starts with pay every two weeks, which is 26 paychecks a year, and the examples and answers on this page use that. Choose weekly, twice a month or monthly in the calculator to see your own paycheck figure. Twice a month is 24 paychecks, so each one is a little bigger than a biweekly paycheck.

What the result leaves out

Tax. Every figure is before tax. This page does not estimate income tax, Social Security or Medicare.
Overtime and bonuses. Only base pay is counted. If you work overtime, a higher hourly rate raises your overtime rate too.
Benefits. Changes to health insurance costs or retirement matching are not included, and they can matter as much as the raise.
Timing. The yearly increase is for 12 full months at the new pay. A raise that starts partway through the year adds less this calendar year.
Your own prices. The after-inflation figure is an estimate based on a national average. It is not a forecast of future prices.

Common mistakes

Dividing by the new pay. Going from $50,000 to $55,000 is a 10% raise. Dividing the $5,000 by $55,000 gives 9.09%, which is wrong.
Comparing percents instead of dollars. The same percent is worth more on higher pay. Use the table above to see the amount.
Ignoring inflation. A raise below the rise in prices leaves you able to buy less.
Treating the raise as take-home. Tax comes out of it first.
Using 2,080 hours when you work part time. Enter your real hours a week.

Questions people ask

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 $50,000 to $55,000 is a raise of 10%.

How much is a 3% raise on $50,000?

$1,500 a year before tax, which makes the new salary $51,500. That is $125 a month, or about $57.69 per biweekly paycheck.

How much is a 5% raise per paycheck?

It depends on your pay. On $60,000 a year, a 5% raise is $3,000 a year, or about $115.38 per biweekly paycheck before tax.

How much is a $1 an hour raise worth a year?

$2,080 a year before tax if you work 40 hours a week all year, because that is 2,080 hours. That is $80 per biweekly paycheck.

What is a real raise?

A raise measured after inflation. If your pay rises by the same percent as prices, you can buy the same as before and your real raise is zero. Only the part above inflation adds to your buying power.

Does a 3% raise keep up with inflation?

Compare it with the latest figure. Consumer prices rose 3.4% in the 12 months to August 2026, so a 3% raise over that period is a real change of −0.39%.

How much of my raise will I keep after tax?

This calculator shows figures before tax. Federal income tax, Social Security (6.2%) and Medicare (1.45%) come out of a raise the same way they come out of the rest of your pay, and state income tax may apply too.

Can a raise lower my take-home pay by moving me into a higher tax bracket?

Not because of the tax brackets. Federal brackets are marginal, which means a higher rate applies only to the income above the bracket line. The rest of your pay is taxed as before, so more pay before tax still leaves more after federal income tax.

Sources

Figures last checked against these sources on October 10, 2026. This page gives general information and estimates, not tax, legal or financial advice.