Use this annual raise calculator to see what a yearly salary increase is worth in dollars. Enter your current annual salary and expected raise percentage to calculate your new salary, annual gain, monthly and biweekly increase, hourly equivalent, and how recurring raises can compound over time.
| Year | Projected salary | Increase vs today |
|---|
Planning estimate only. Results are gross pay before taxes, benefits and payroll deductions. Calculations run in your browser.
What is an annual raise calculator?
An annual raise calculator converts a yearly salary increase into actual dollars. Instead of only knowing that your raise is 3%, 5% or 10%, you can see your new salary and how much extra gross pay that percentage adds each month, every two weeks, each week and per hour.
This RaiseDelta calculator also projects recurring annual raises over time. That matters because repeated percentage increases compound: each new raise is applied to the salary produced by the previous raise.
How to use the annual raise calculator
- Enter your current annual salary.
- Enter the annual raise percentage you expect.
- Choose how many years you want to project.
- Optionally adjust the inflation assumption to estimate real purchasing-power growth.
The results update automatically. You will see your new annual salary, annual gain, paycheck-equivalent increases and long-term salary projection without pressing a calculate button. If your starting pay is hourly, weekly, biweekly or monthly and you want to understand the yearly-equivalent figure first, see What Is an Annualized Salary?.
Annual raise formula
To calculate the next salary after a percentage raise:
New salary = Current salary × (1 + Raise percentage ÷ 100)
The dollar value of the raise is:
Annual increase = Current salary × Raise percentage ÷ 100
For example, a 5% raise on a $65,000 salary adds $3,250 per year and produces a new salary of $68,250.
If you already know your old and new salaries and need to find the percentage instead, see How to Calculate Salary Increase Percentage.
How recurring annual raises compound
A recurring annual raise is different from adding the same dollar amount every year. If the raise is a percentage, the base salary grows before the next percentage is applied.
The long-term formula is:
Future salary = Current salary × (1 + Annual raise rate)Years
| Starting salary | Annual raise | After 1 year | After 5 years | After 10 years |
|---|---|---|---|---|
| $50,000 | 3% | $51,500 | $57,963.70 | $67,195.82 |
| $65,000 | 3% | $66,950 | $75,352.81 | $87,354.56 |
| $65,000 | 5% | $68,250 | $82,958.30 | $105,878.15 |
| $100,000 | 5% | $105,000 | $127,628.16 | $162,889.46 |
These examples assume the same raise percentage occurs every year. Real salaries can change differently because of promotions, freezes, bonuses, market adjustments or job changes.
Annual raise examples
| Current salary | Raise | Annual gain | New salary | Monthly gain |
|---|---|---|---|---|
| $50,000 | 3% | $1,500 | $51,500 | $125 |
| $65,000 | 3% | $1,950 | $66,950 | $162.50 |
| $65,000 | 5% | $3,250 | $68,250 | $270.83 |
| $80,000 | 5% | $4,000 | $84,000 | $333.33 |
| $100,000 | 10% | $10,000 | $110,000 | $833.33 |
For deeper examples, see What Is a 3% Raise? and What Is a 5% Raise?.
Annual raise vs merit raise vs promotion raise
“Annual raise” describes when an increase happens, not necessarily why it happens. Employers can increase salary for several different reasons:
| Type | What it usually reflects |
|---|---|
| Annual raise | A scheduled yearly pay adjustment |
| Merit raise | Performance in the current role |
| Promotion raise | Moving into a higher-level role or greater responsibility |
| Market adjustment | Bringing pay closer to external market rates |
| Cost-of-living adjustment | Responding to inflation or living-cost changes |
Read What Is a Merit Raise? for the concept, use the Merit Increase Calculator to model a performance-based raise, and see Average Promotion Salary Increase in 2026 for promotion-specific context.
What is a good annual raise?
A raise should not be judged by percentage alone. Compare it with the reason for the increase, your performance, your market value, inflation and whether your responsibilities changed. A percentage that is strong for a routine annual review may be weak for a major promotion.
For current U.S. benchmarks and 2026 context, see What Is a Good Raise Percentage in 2026?.
How inflation changes the value of an annual raise
Your paycheck receives the nominal raise, but purchasing power depends on inflation. The more precise real-raise formula is:
Real raise = ((1 + nominal raise) ÷ (1 + inflation rate) − 1) × 100
If your salary rises 5% while inflation is 3%, your real purchasing-power growth is about 1.94%. The calculator’s inflation field is for planning only; it does not reduce the nominal salary shown.
Does the calculator include taxes?
No. The calculator shows gross salary and gross raise amounts. Your actual take-home increase depends on income tax, payroll tax, retirement contributions, insurance and other deductions. A raise can also affect marginal tax rates, but moving into a higher tax bracket does not normally mean all of your income is taxed at the higher rate.
Frequently asked questions
How do I calculate a 3% annual raise?
Multiply your current annual salary by 0.03 to find the raise amount, then add it to your salary. On $65,000, a 3% raise is $1,950 and the new salary is $66,950.
How do I calculate a 5% annual raise?
Multiply your current salary by 0.05. A 5% raise on $65,000 is $3,250, producing a new annual salary of $68,250.
Do annual raises compound?
Yes, if each raise is a percentage of your current salary. A 3% raise in year two is applied to the salary after year one’s raise, not the original starting salary.
Is an annual raise the same as a bonus?
No. An annual raise permanently increases base salary unless your pay changes again later. A bonus is generally a separate one-time payment and does not automatically increase future base pay.
How much will a $1-per-hour raise add per year?
At 40 hours per week for 52 weeks, a $1 hourly raise adds about $2,080 in gross annual pay before overtime, unpaid time or payroll deductions.
Calculate your yearly salary increase
Use the calculator at the top of this page to compare annual raises and long-term salary growth. For a one-time raise, target salary, effective-date proration, after-tax estimate and offer comparison, use the full RaiseDelta Salary Increase Calculator.