How to calculate a raise
A 4% raise on $60,000 is $2,400 a year, or $200 a month and about $92 per biweekly paycheck before taxes.
Real raise vs. inflation
If prices rose 2.6% over the year, a 2.6% raise only keeps your buying power the same. Your real raise is roughly the raise minus inflation. A 4% raise with 2.6% inflation is a real raise of about 1.4%.
After-tax value of a raise
Part of each extra dollar goes to federal and state income tax, Social Security, and Medicare. Use the paycheck calculator with your new salary to see the change in take-home pay.
Frequently asked questions
What's a typical annual raise?
It varies by employer, industry, and year. Comparing your raise with inflation shows whether your pay is gaining or losing buying power.
How do I ask for a raise?
Bring evidence: what similar jobs pay, results you've delivered, and new responsibilities. A specific number, backed by those facts, is easier to discuss than a general request.