Raise Calculator
See how a raise changes your income. Enter your current salary and either a percentage increase or new salary amount.
Raise Details
Enter your current salary and either a raise percentage or new salary amount.
How Much Is a $1 Raise Per Month?
A $1 hourly raise equals $2,080 per year (based on 2,080 standard work hours). That's approximately $173.33 per month before taxes. Here are common raise amounts:
How to Calculate a Pay Raise
There are two ways to calculate a raise:
- By percentage: New Salary = Current Salary × (1 + Raise%)
- By amount: New Salary = Current Salary + Raise Amount
Example: A 10% raise on $60,000 = $60,000 × 1.10 = $66,000
Raise Percentage Guidelines
Monthly vs Annual Raise
When evaluating a raise, focus on the annual increase because it shows the total impact on your income. The monthly increase is simply the annual raise divided by 12. For example, a $5,000 annual raise = $416.67/month.
How to Interpret Your Result
- How much does a $1/hour raise change annual income? A $1/hour raise = $2,080/year (at 2,080 work hours). That's $173/month before taxes. After ~25% in taxes, your take-home increase is closer to $130/month.
- Percentage vs. dollar amount: A 10% raise on $50,000 ($5,000) is the same as a 5% raise on $100,000 ($5,000). Always look at the dollar increase, not just the percentage.
- Compare with a job change: If a new job offers $10,000 more but requires a longer commute, use the Real Hourly Wage Calculator to see if the raise actually improves your hourly rate.
Assumptions
This calculator uses 2,080 work hours per year (40 hours × 52 weeks) to convert hourly raises to annual figures. Monthly figures divide the annual raise by 12. All amounts are pre-tax (gross). Your actual take-home increase will be lower after federal, state, and payroll taxes. Raises that push you into a higher tax bracket have a smaller net impact than the gross number suggests.
Common Mistakes
- Forgetting taxes: A $5,000 raise is not $5,000 in your pocket. After taxes, expect roughly 70-75% of it as take-home, depending on your bracket and state.
- Ignoring benefits: A 5% raise with worse health insurance may cost you more than a 3% raise with better benefits. Look at total compensation, not just salary.
- Annualizing a one-time bonus: A $5,000 signing bonus is not the same as a $5,000 annual raise. The bonus happens once; the raise compounds year over year.
Frequently Asked Questions
How much is a $1 raise per month?
A $1 hourly raise equals $2,080 per year (based on 2,080 work hours). That's about $173.33 per month before taxes.
How do I calculate a pay raise?
Multiply your current salary by the raise percentage (as a decimal). For example, a 5% raise on $60,000 = $60,000 × 1.05 = $63,000.
What is a good raise percentage?
A good raise is typically 3-5% annually, which covers inflation. Promotions or job changes often bring 10-20% raises.
Monthly vs annual raise - which matters more?
Annual raise matters more for total compensation. Monthly increase is just the annual raise divided by 12. Focus on the annual figure.