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Money Tools › Pay Raise Calculator
Free money tool

Pay Raise Calculator

A raise sounds great as a percentage, but the dollars and the inflation-adjusted value tell the fuller story. Slide your current salary, the raise you expect, and inflation to see both the nominal and real change. The result updates the moment you move a slider.

A 4% raise takes you to $72,800 (+$2,800/year, $233/month). After 3% inflation your real raise is 1.0%.

Worked examples

Real results from this calculator, computed for a few common scenarios. Move the sliders above to run your own numbers.

Current salary = $116,000A 4% raise takes you to $120,640 (+$4,640/year, $387/month). After 3% inflation your real raise is 1.0%.
Current salary = $260,000A 4% raise takes you to $270,400 (+$10,400/year, $867/month). After 3% inflation your real raise is 1.0%.
Current salary = $404,000A 4% raise takes you to $420,160 (+$16,160/year, $1,347/month). After 3% inflation your real raise is 1.0%.

Your next step

How this math works

Your new salary is the current salary multiplied by one plus the raise percentage. The tool reports the dollar increase across a full year and the same amount split into months.

The real raise adjusts for rising prices using the formula one plus the raise, divided by one plus inflation, minus one. When inflation matches your raise, the real gain is near zero even though the number on your paycheck went up.

Common questions

What is the difference between a nominal and a real raise?

The nominal raise is the headline percentage added to your pay. The real raise is what is left after inflation, which reflects your actual change in buying power.

Why can a raise feel like no raise at all?

If prices climb as fast as your pay, your real raise shrinks toward zero. A 4 percent raise during 4 percent inflation leaves your purchasing power roughly flat.

Does this account for taxes?

No. The figures here are before taxes, and a higher salary can fall into higher tax brackets, so your take-home increase may be smaller than the gross numbers shown.

Put this calculator on your website

Bloggers, teachers, credit unions, HR teams: embed the live Pay Raise Calculator free. Copy the snippet below — the tool keeps working and stays up to date automatically, no maintenance on your side.

Just so you know: DollarFlourish is an educational publisher, not a financial, tax, or investment advisor. Numbers and rates change. Verify anything important with a licensed professional before acting on it. Some links on this site may earn us a commission at no cost to you. See how we review.

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