Step-by-Step Instructions

1. 1.
   Enter Current Salary: Input your current gross annual salary before taxes. Include base salary but exclude bonuses or variable compensation for accurate raise calculations.
2. 2.
   Choose Increase Type: Select whether you're calculating a percentage increase (most common) or a specific dollar amount increase.
3. 3.
   Input Increase Value: Enter the percentage (e.g., 5 for 5%) or dollar amount (e.g., 5000 for $5,000) of your proposed or actual salary increase.
4. 4.
   Calculate Impact: Review your new salary, monthly increases, and long-term projections to understand the full financial impact.

Calculator Features

What is a typical salary increase percentage?

Typical salary increases range from 3-5% annually for standard performance, 5-10% for strong performance, and 10%+ for exceptional performance or promotions.

How do I calculate a 5% salary increase?

Multiply your current salary by 0.05 (5%). For a $60,000 salary: $60,000 × 0.05 = $3,000 increase. New salary would be $63,000.

When is the best time to ask for a salary increase?

Best times include during performance reviews, after completing major projects, when taking on new responsibilities, or during annual budget planning cycles.

How does inflation affect salary increases?

Inflation reduces purchasing power, so salary increases should at least match inflation rates (typically 2-3%) to maintain real income value.

What's the difference between cost-of-living and merit increase?

Cost-of-living adjustments (COLA) maintain purchasing power, while merit increases reward performance. Many companies combine both in annual raises.

How do salary increases compound over time?

Each increase builds on the previous salary. A 5% raise on $60,000 becomes $63,000, then next year's 5% is calculated on $63,000, creating compound growth.

What salary increase should I expect with a promotion?

Promotions typically come with 10-20% increases, though this varies by industry, company size, and level of responsibility change.

How do I negotiate a better salary increase?

Research market rates, document achievements, quantify your value, practice your pitch, and be prepared with specific numbers and examples of your contributions.