Pay Raise Calculator

Planning for a Raise

Whether you're expecting an annual merit increase or negotiating a promotion, knowing the exact numbers helps you plan your financial future.

The Impact of a Raise

A raise doesn't just increase your annual gross pay; it affects every paycheck.

• Compound Growth: Raises are typically percentage-based, meaning a raise today increases the base for your next raise tomorrow.
• Tax Implications: A significant raise might push a portion of your income into a higher tax bracket, though your effective tax rate usually increases only slightly.
• Inflation: It's important to compare your raise percentage against the current inflation rate to see if your "real wages" are actually increasing.

Negotiation Tip

When negotiating, it's often helpful to frame your request in both percentage terms ("I'm looking for a 10% adjustment") and absolute terms ("I'd like to bring my salary to $85,000").