A 4% raise means your current pay increases by 4%. For a $65,000 salary, that adds $2,600 per year and raises your salary to $67,600. For an hourly worker earning $25 per hour, a 4% raise adds $1 per hour, bringing the new rate to $26 per hour.
Below, you can see exactly how a 4% raise changes hourly, weekly, biweekly, monthly and annual pay, plus how to judge whether 4% is a meaningful increase after inflation.
How to calculate a 4% raise
The basic formula is:
Raise amount = Current pay × 0.04
New pay = Current pay × 1.04
For example, if you earn $65,000:
- $65,000 × 0.04 = $2,600 annual raise
- $65,000 + $2,600 = $67,600 new annual salary
If you want to enter your own numbers, use the Salary Increase Calculator.
How much is a 4% raise per hour?
For hourly pay, multiply your current hourly rate by 4%. The increase depends on what you already earn.
| Current hourly pay | 4% raise per hour | New hourly pay | Extra per year at 40 hrs/week |
|---|---|---|---|
| $15.00 | $0.60 | $15.60 | $1,248 |
| $20.00 | $0.80 | $20.80 | $1,664 |
| $25.00 | $1.00 | $26.00 | $2,080 |
| $30.00 | $1.20 | $31.20 | $2,496 |
| $40.00 | $1.60 | $41.60 | $3,328 |
| $50.00 | $2.00 | $52.00 | $4,160 |
These annual estimates assume 40 hours per week for 52 weeks, or 2,080 paid hours per year. If your hours vary, multiply the hourly raise by your expected annual hours instead. For more on converting hourly, part-time or partial-year pay into a yearly equivalent, see What Is an Annualized Salary?.
4% raise salary examples
| Current salary | Annual raise | New salary | Monthly increase | Biweekly increase |
|---|---|---|---|---|
| $40,000 | $1,600 | $41,600 | $133.33 | $61.54 |
| $50,000 | $2,000 | $52,000 | $166.67 | $76.92 |
| $65,000 | $2,600 | $67,600 | $216.67 | $100.00 |
| $80,000 | $3,200 | $83,200 | $266.67 | $123.08 |
| $100,000 | $4,000 | $104,000 | $333.33 | $153.85 |
| $120,000 | $4,800 | $124,800 | $400.00 | $184.62 |
The monthly figures divide the annual raise by 12. Biweekly figures divide it by 26. Your actual paycheck difference can be lower after taxes, retirement contributions, insurance and other deductions.
What does a 4% raise look like on a $65,000 salary?
On a $65,000 salary, a 4% raise produces:
- New annual salary: $67,600
- Annual increase: $2,600
- Monthly increase: about $216.67
- Biweekly increase: $100
- Weekly increase: $50
Those are gross-pay figures before deductions.
Is a 4% raise good?
A 4% raise can be meaningful, but whether it is “good” depends on why you are getting it and what is happening to your purchasing power. A standard annual or merit increase should be judged differently from a promotion raise that comes with substantially more responsibility.
Three useful questions are:
- Is the raise higher than inflation?
- Did your responsibilities or job level increase?
- Is your new salary competitive for your role and market?
For broader current benchmarks, read What Is a Good Raise Percentage in 2026?. If the increase is performance-based, the Merit Increase Calculator can help you compare scenarios.
4% raise after inflation
A 4% nominal raise does not always mean your purchasing power rises by a full 4%. To estimate the real increase after inflation, use:
Real raise = ((1 + raise rate) ÷ (1 + inflation rate) − 1) × 100
If your raise is 4% and inflation is 3%, your real increase is approximately 0.97%. If inflation is higher than your raise, your salary can increase in dollars while your purchasing power still falls.
3% vs 4% vs 5% raise
On a $65,000 salary, the difference between nearby raise percentages looks like this:
| Raise | Annual increase | New salary | Monthly increase |
|---|---|---|---|
| 3% | $1,950 | $66,950 | $162.50 |
| 4% | $2,600 | $67,600 | $216.67 |
| 5% | $3,250 | $68,250 | $270.83 |
You can also compare our guides to a 3% raise and a 5% raise.
Does a 4% raise compound over time?
Yes—if you receive another percentage raise later, it is normally applied to your new salary rather than your original salary. That creates compounding.
For example, if a $65,000 salary grew by 4% every year:
| Year | Salary after repeated 4% raises |
|---|---|
| 1 | $67,600.00 |
| 3 | $73,116.16 |
| 5 | $79,082.44 |
| 10 | $96,215.88 |
These figures assume exactly one 4% raise every year. For your own projection, use the Annual Raise Calculator.
Frequently asked questions
How much is a 4% raise on $20 an hour?
A 4% raise on $20 per hour is $0.80 per hour, so your new hourly rate is $20.80. At 40 hours per week for 52 weeks, that is about $1,664 more gross pay per year.
How much is a 4% raise on $25 an hour?
A 4% raise on $25 per hour is exactly $1 per hour, bringing your rate to $26. At 2,080 work hours per year, that adds $2,080 in annual gross pay.
How much is a 4% raise on $50,000?
It is $2,000 per year, bringing the new salary to $52,000. That equals about $166.67 more per month before deductions.
How much is a 4% raise on $100,000?
It is $4,000 per year, bringing the new salary to $104,000. That is approximately $333.33 more per month before deductions.
Is a 4% raise the same as a promotion raise?
Not necessarily. A 4% increase could be an annual merit adjustment, market adjustment or promotion increase. The percentage alone does not tell you why the employer raised your pay. For promotion-specific context, see Average Promotion Salary Increase in 2026.
Calculate your exact 4% raise
Your actual dollar increase depends on your starting pay. Use the free RaiseDelta Salary Increase Calculator to calculate a 4% raise for any hourly, weekly, biweekly, monthly or annual salary.