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Raise calculator

How a raise translates to real, after-tax, after-inflation income.

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About this calculator

A salary raise looks bigger than it spends. A 5% raise on $80k is $4,000 gross, but maybe $2,700 take-home, and after 3% inflation it's barely $1,300 of real new buying power. This calculator shows all three layers — gross, net, and real — so you can negotiate against numbers that reflect what you'll actually feel.

The inflation adjustment matters

During 2021–2023, US inflation ran 7–9% at peak. A 5% raise in that environment was a real pay cut. Many workers didn't realize their "raise" was effectively a 2–4% reduction in spending power. Pre-2020, with sub-2% inflation, even small raises preserved real income. Always negotiate against the relevant inflation environment.

Tax bracket creep on big raises

A raise that pushes you into a new bracket means the marginal rate on the new dollars is higher than your historical effective rate. A 20% raise from $90k to $108k crosses the 22%→24% bracket threshold — the new dollars are taxed at 24% federal plus FICA plus state, easily 35%+ marginal. Take-home from the raise is smaller than naive math suggests.

What to negotiate besides base salary

Total comp includes bonus target, equity grants/refreshes, 401(k) match, HSA contribution, professional development budget, and PTO. A 5% base raise is worth less than a 3% raise + $5,000 sign-on/retention bonus + an extra week of PTO. These non-base items are often easier to win because they don't ripple through compensation grids the way base does.

Frequently asked questions

What’s an average annual raise?
US average merit raises ran 3–4% for 2010–2020, then jumped to 4–5% during 2022–2023 due to inflation and tight labor market. 2024 budgets settled around 3.5–4%. Top performers typically get 1.5–2× the average.
How often should I expect a raise?
Annual merit cycle is standard. Promotions can come with larger jumps (10–20%). Job switches average 10–15% bumps and are often the fastest way to grow income significantly.
Should I take a higher title or higher salary?
Long-term, title often wins — it sets the floor for future job searches. Short-term, salary wins for current cash flow. Best is both, but in negotiation pick the one that compounds for your career stage.
Is a 3% raise an insult?
Depends on context. At low inflation, 3% is roughly tracking the market and is fine for steady performance. At 5%+ inflation, 3% is a real pay cut — worth pushing back. Always know the company’s budgeted raise pool before negotiating.
5% raise on $80k — net, real, monthly | SuperCalculator