Salary Increase Calculator

Here is how to calculate salary increase percentage: subtract the old salary from the new one, divide by the old salary and multiply by 100. Going from $60,000 to $63,000 is $3,000 ÷ $60,000 × 100 = 5%.

Multiply the current salary by 1 plus the raise as a decimal. A 4% raise on $60,000 is $60,000 × 1.04 = $62,400, or $92.31 more on each of 26 paychecks. For a team, the merit increase calculator in the tool plans each raise against a budget with a merit matrix.

Your top federal bracket, Social Security and Medicare, and the state's tax come off the new dollars only, so a raise never lowers take-home pay. On a 4% raise from $60,000 to $62,400, single and paid every two weeks with no state income tax, about $1,929 of the $2,400 is left a year. Pick the state and filing status in the calculator; it runs every paycheck of the year through the 2026 rules.

A grid of raise percentages by performance rating and by where pay sits against the range midpoint. The same rating earns more below the midpoint than above it, so pay moves toward the middle of the range.

SHRM reported in August 2026 that US salary increase budgets averaged 3.5% in 2026 and that employers plan 3.4% for 2027. Private-industry wages and salaries rose 3.1% in the 12 months to June 2026, per the BLS Employment Cost Index.

State the raise, the old and new pay and the date, then the reason with evidence: results with numbers for merit, the new duties for a promotion, a market figure and its source for a market adjustment. The examples below follow that pattern.