Your boss says “we’re giving you a 4% raise.” Sounds nice — but how much is that actually, in your pocket, each month? Most people nod along without doing the math. This guide turns raise percentages into real money, shows you how to calculate any raise yourself, and helps you tell whether an offer is genuinely good or just keeping up with rising prices. For an instant answer, use our free Salary Raise Calculator.

How to Calculate a Raise

There are two simple formulas, depending on what you know:

If you know the percentage: New Salary = Current Salary × (1 + raise% ÷ 100)
If you know the new salary: Raise% = (New − Current) ÷ Current × 100

For example, a 5% raise on $50,000 is 50,000 × 1.05 = $52,500, an increase of $2,500 a year. Going the other way, a jump from $50,000 to $53,000 is (3,000 ÷ 50,000) × 100 = a 6% raise.

How Much Is a 3% Raise?

A 3% raise adds three cents for every dollar you earn. On common salaries (before tax):

• 3% of $40,000 = +$1,200/year → $41,200 (about $100/month)
• 3% of $50,000 = +$1,500/year → $51,500 (about $125/month)
• 3% of $60,000 = +$1,800/year → $61,800 (about $150/month)
• 3% of $75,000 = +$2,250/year → $77,250 (about $188/month)
• 3% of $100,000 = +$3,000/year → $103,000 (about $250/month)

How Much Is a 5% Raise?

• 5% of $40,000 = +$2,000/year → $42,000
• 5% of $50,000 = +$2,500/year → $52,500
• 5% of $60,000 = +$3,000/year → $63,000
• 5% of $75,000 = +$3,750/year → $78,750
• 5% of $100,000 = +$5,000/year → $105,000

How Much Is a 10% Raise?

• 10% of $40,000 = +$4,000/year → $44,000
• 10% of $50,000 = +$5,000/year → $55,000
• 10% of $60,000 = +$6,000/year → $66,000
• 10% of $75,000 = +$7,500/year → $82,500
• 10% of $100,000 = +$10,000/year → $110,000

A handy shortcut: 1% of your salary × the raise percentage gives the annual increase. Find 1% (divide by 100), then multiply by the percent. For $60,000, 1% is $600, so a 7% raise is 600 × 7 = $4,200 a year.

Is a 3% Raise Good? What Counts as a Strong Raise

It depends entirely on the context:

• 3–5% — typical annual cost-of-living or merit raise.
• 5–10% — a strong performance raise or a meaningful market adjustment.
• 10–20%+ — usually a promotion or moving to a new employer.

The single best test is inflation. If prices are rising faster than your raise, your real income fell even though the number went up. A 3% raise in a year of 5% inflation is effectively a 2% pay cut in buying power. That’s why “how much” and “how much after inflation” are two different — and equally important — questions.

Does Your Raise Beat Inflation?

To check, simply compare your raise percentage to the inflation rate. Raise above inflation = you’re genuinely ahead. Raise below inflation = you’ve quietly lost ground. When negotiating, it’s reasonable to frame your ask as “inflation plus a reward for my results,” which anchors the conversation to keeping your real pay whole and then adding value on top.

Don’t Forget Taxes

Every figure above is your gross raise, before tax. Your take-home increase will be a little smaller, and a big raise can move part of your income into a higher tax bracket — so the after-tax gain is real, just not the full headline number. To see what actually hits your bank account, run your new salary through our Paycheck Calculator, and use the Salary Calculator to see your new pay as an hourly, weekly, or monthly figure.