Your salary across common pay periods before and after the raise, with the increase for each period. Figures are gross, before tax.
Period
Before raise
After raise
Increase
Annual
$60,000
$63,000
$3,000
Monthly
$5,000
$5,250
$250
Weekly
$1,154
$1,212
$58
Per hour (40h/wk)
$29
$30
$1
Estimates only — not financial, tax, or professional advice.
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What it calculates: New Salary, Annual Increase, Monthly Increase, Real Raise After Inflation.
Updated 5 June 2026 · Transparent assumptions
The real raise is a ratio, not a subtraction
A 6% raise against 4% inflation is not a 2% real raise. The correct figure divides rather than subtracts: 1.06 over 1.04 is 1.0192, so the real increase is 1.92%. The shortcut overstates it, and the error widens as both numbers grow.
At low inflation the gap is small enough to ignore in conversation. At 10% inflation against a 12% raise the subtraction says 2% while the real answer is 1.82%. The two methods always agree on whether you came out ahead — the division only shrinks the figure, never flips its sign — but the higher inflation runs, the more the shortcut flatters the result.
Anything below the inflation rate is a real-terms pay cut
The break-even raise is simply the inflation rate. Accept less and your purchasing power has fallen, however positive the number on the letter looks — a 3% raise in a 5% inflation year leaves you measurably worse off than before it.
This is the most useful single output here, because the framing of a pay conversation rarely includes it. Knowing the figure at which the offer stops being an increase changes what you are actually negotiating about.
An annual increase divided by twelve is a smaller thing
Raises are quoted annually because the number is larger. The monthly increase is what actually reaches a bank account, and dividing by twelve reliably makes an impressive-sounding raise feel more ordinary.
It is also the honest figure for budgeting against, since the monthly amount is what can be committed to a payment or a saving. The calculator reports it next to the annual figure for exactly that reason.
Tax bands, benefits and the rest of the package sit outside it
Everything here is gross. A raise that pushes income across a tax threshold nets less than its headline, and in progressive systems the marginal rate applies to the increase rather than to the whole salary — so the take-home change is smaller than the gross change in nearly every case.
Compensation that is not salary is also excluded: bonuses, equity, pension contributions, insurance and leave. A smaller raise with a larger employer pension contribution can be worth more than a bigger headline number, and none of that is visible in this calculation.
Sources & References
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
Results are estimates based on the figures you enter and standard formulas. Rates, fees, taxes, and lender terms vary and change over time, so confirm important numbers with your lender or a qualified professional. This is educational information, not financial advice.
Published the calculator with its formula, worked example, assumptions, limitations and a bespoke guide, and added an automated formula test suite covering it.
Tested the real raise as a ratio rather than a subtraction, including the case where the raise exactly equals inflation and the real increase must be zero.
Tested that the new salary, the raise amount and the monthly increase all reconcile with the current salary and the percentage entered.
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