Salary Increase Calculator

💼 Finance & Money

Salary Increase Calculator

See your new salary, the dollar raise, and how a pay rise stacks up against inflation — so you know if it's a real increase or just keeping up.

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Salary Increase Calculator

Enter your current salary and the raise percentage. Get new salary, annual and monthly raise, and the real (inflation-adjusted) increase.

Your Raise
Context — Optional
To see if the raise beats inflation
See what % raise hits your number
Please enter your current salary and a raise percentage greater than zero.
New Annual Salary
$0
Annual Raise
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Real Raise (after inflation)
—
Monthly Increase
—
Per Paycheck (bi-weekly)
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5-Year Raise Impact
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Raise to Hit Target
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How Much Is Your Pay Rise Worth?

A pay rise percentage tells you part of the story. The full story adds three more questions: what does that percentage mean in actual dollars, does it beat inflation, and how does it compound over multiple years? A 5% raise on a $75,000 salary adds $3,750 — that's $312.50 more per month, $144.23 per paycheck. But against 3.2% inflation it's only a 1.8% real increase in purchasing power. This calculator resolves all four numbers instantly.

The Formula Stack

New Salary = Current Salary × (1 + Raise%)
Annual Raise = New Salary − Current Salary
Real Raise = Raise% − Inflation%
5-Year Impact = Salary × ((1 + Raise%)^5 − 1)

The real raise — adjusted for inflation — is the number that actually matters to your standard of living. Any raise below the inflation rate is effectively a pay cut in purchasing power terms, even as the nominal number grows. Knowing this gives you an objective, non-confrontational way to frame a negotiation: at 3.2% inflation, a 3% raise is a real cut.

How to Use This Calculator

Enter your current salary and raise percentage for the core numbers. Add the current inflation rate to see the real raise. Add a target salary to find the exact percentage you'd need to ask for. The calculator also shows the five-year compounding impact at the same raise rate — because raises compound, a consistent 5% raise over five years adds far more than five single raises at that level.

Worked Example

Current salary $75,000, raise of 5%, inflation 3.2%. New salary: $78,750. Annual raise: $3,750. Real raise: 5% − 3.2% = 1.8%. Monthly increase: $312.50. At that same 5% rate for five years, the five-year total increase is $75,000 × (1.05^5 − 1) = $20,721. If the target was $85,000, the raise needed is (($85,000 − $75,000) ÷ $75,000) × 100 = 13.3% — not the 5% on the table.

How to Negotiate a Higher Raise

  • Anchor to inflation first: "At 3.2% inflation, this keeps me flat — can we discuss a real increase?"
  • Benchmark against market: Glassdoor, LinkedIn Salary, and SEEK (AU) data anchor you to external reality
  • Quantify your contribution: revenue generated, cost saved, projects delivered — concrete outcomes trump soft arguments
  • Negotiate total compensation: if base is fixed, push for more leave, bonus, flexible working, or professional development
  • Ask once, clearly, with a specific number: vague asks get vague outcomes
💡 If a promotion comes with a raise, this calculator is a useful gut-check. A "promotion" to a more demanding role with a 3% raise in a 4% inflation environment is a real pay cut with more responsibility. Know the numbers before you accept.

Related Pay & Career Tools

See your new take-home after tax with the take-home pay calculator, convert your salary to an effective hourly rate with the salary to hourly calculator, and if you're considering the freelance route instead, the freelance rate calculator shows what you'd need to charge to match your salary.

Frequently Asked Questions

How do I calculate a salary increase?
Multiply your current salary by (1 + raise% ÷ 100). A $75,000 salary with a 5% raise gives $75,000 × 1.05 = $78,750. The annual raise is $3,750; divide by 12 for monthly ($312.50) or by 26 for bi-weekly ($144.23).
What is a good salary increase?
A raise above inflation is a genuine real increase. At typical recent inflation rates of 2–4%, a raise of 3–5% is around inflation-neutral to slightly ahead. A merit-based raise of 5–10%+ represents genuine real growth. Promotion raises are often 10–20%+. Anything below inflation is effectively a pay cut.
What is a real salary increase?
A real raise is the nominal percentage minus the inflation rate. A 5% raise at 3.2% inflation is a +1.8% real raise — your purchasing power grows slightly. A 3% raise at 4% inflation is a −1% real raise — your cost of living rises faster than your pay.
How much is a 5% raise on a $75,000 salary?
$75,000 × 0.05 = $3,750 annual increase, or $312.50/month, $144.23 bi-weekly. The new salary is $78,750. Whether that's meaningful depends on your inflation rate — at 3.2% inflation, the real increase is just 1.8% of purchasing power.
How do I ask for a pay raise?
Anchor to three things: your market rate (salary data from job sites), your inflation context (any raise below inflation is a real cut), and your specific contributions (quantified where possible). Ask for a specific number, not a range. Timing matters — annual reviews or after a clear win are strongest moments.
How do raises compound over time?
Significantly — a consistent 5% annual raise on $75,000 over 5 years adds about $20,721 in cumulative extra salary above the starting rate, and the salary itself reaches $95,722. Early raises compound into later ones, which is why negotiating hard at the start of a career has outsized long-term impact.
What is a cost of living adjustment (COLA)?
A salary increase specifically intended to match inflation — keeping your purchasing power flat, not increasing it. A COLA equal to inflation is not a raise in real terms; it's a maintenance adjustment. True merit raises come on top of any COLA.
How does a raise affect my take-home pay?
Less than you might expect, because higher income may push some earnings into a higher tax bracket. The marginal rate applies only to the raise itself, not your whole salary — the commonly feared 'bracket jump' doesn't eliminate the benefit of a raise, but it does reduce the net increase slightly.
Is my data private?
Yes. Every calculation on this page runs entirely inside your browser using JavaScript. Nothing you type is stored, logged, or sent to any server, and you can use the calculator offline once the page has loaded.
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