Salary Raise Calculator

A raise is taxed at your marginal rate, not your average rate. A $10,000 raise for someone in the 22% federal bracket plus 5% state plus 7.65% FICA loses about 35% to taxes - so take-home rises by roughly $6,500/year, or $542/month. The calculator estimates net change after federal, state, and payroll taxes.

BLS data shows US private-sector wages and salaries grew 3.6%–5.5% annually from 2022–2024, after running 2.5%–3% in the 2010s. Cost-of-living raises tend to track inflation; merit raises typically add 3%–5% on top for strong performers. Promotions usually deliver larger jumps of 10%–20%.

Yes - directing some or all of the raise to retirement is one of the easiest ways to improve long-term wealth without feeling a budget hit. A $5,000 raise that bumps your 401(k) contribution by 3 percentage points can grow to $400,000+ over 30 years at 7% returns, while only reducing take-home pay by about $260/month.

Document accomplishments with quantified results, research market pay using Glassdoor / Levels.fyi / BLS data, time the request after a clear win or during annual reviews, and propose a specific number rather than asking what's possible. Practice the conversation. Most managers expect some negotiation - coming prepared with data routinely yields 5%–15% more than the initial offer.