Budgeting & Income
Pay Raise Calculator
A raise sounds great, but a 3% bump in a 3% inflation year leaves you no better off. Enter your current salary and raise to see the new figure, the increase per month, and your real raise after inflation.
Compare your raise to inflation to see the real gain.
New salary
$63,000
A 5% raise.
- Annual increase
- $3,000
- More per month
- $250
- Real raise (after inflation)
- 2%
Your buying power actually grew by this much.
How this calculator works
New salary = current salary × (1 + raise). The monthly increase divides the annual increase by 12. The real raise subtracts inflation from your raise percentage — the change in purchasing power.
Figures are before taxes; a raise can also push part of your income into a higher bracket, so your take-home increase is a bit less than the gross. Use the Take-Home Pay calculator for the net effect.
Try an example
Frequently asked questions
How do I calculate my new salary after a raise?
Multiply your current salary by (1 + raise percentage). A 5% raise on $60,000 is $60,000 × 1.05 = $63,000, an increase of $3,000 a year or $250 a month before taxes. This calculator also shows the after-tax reality via the linked take-home pay tool.
What is a real raise?
A real raise is your pay increase minus inflation — what actually happens to your buying power. A 3% raise when prices rise 3% leaves you flat; a 5% raise against 3% inflation is a real 2% gain. If your raise trails inflation, you've effectively taken a pay cut.
Is a 3% raise good?
It depends on inflation. In a low-inflation year, 3% keeps you slightly ahead; when inflation runs higher, 3% can mean falling behind. Average annual raises have historically hovered around 3–4%, so beating that — and beating inflation — is the real benchmark.
Related calculators
Take-Home Pay Calculator
See your actual paycheck after federal tax, Social Security, Medicare, 401(k), health premiums, and state tax — per paycheck and per year (2026 figures).
Salary to Hourly Calculator
Convert an annual salary to hourly, weekly, biweekly, and monthly pay — adjusted for your real hours and weeks worked.
Inflation Calculator
See what inflation does to your money: future cost of today's expenses and the shrinking purchasing power of cash over any horizon.
Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.