See how a raise changes your hourly, weekly, and annual pay, and whether it keeps up with inflation.
New hourly rate
$21.00/hr
5.0% raise • $2,080/yr more
New hourly
$21.00
New annual
$43,680
This raise beats inflation
After 3.1% inflation, your real raise is 1.9%. You’d need about $1,290/yr just to keep the same buying power.
Figures verified January 2026.
Enter your current pay as an hourly rate or annual salary, then set the raise by percent, by dollar amount, or by typing the new pay directly. The calculator converts between hourly and annual using your typical hours per week, shows your new pay and the extra dollars per year, and compares the raise against the latest CPI-U inflation rate so you can see your real, inflation-adjusted raise. A raise only grows your buying power if it beats inflation.
When you get a raise offer, when preparing for a salary negotiation or performance review, when comparing a new job offer to your current pay, or when you want to check whether this year's cost-of-living adjustment actually keeps up with rising prices.
Estimate Only
This calculator provides estimates for educational and planning purposes only. Results are based on general data and may not reflect your specific situation. Tax laws, rates, and regulations change frequently. Always consult a qualified tax professional or financial advisor before making financial decisions.
Last updated: 2026-02-01
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A percentage raise is your current pay times one plus the raise rate: new pay = current pay × (1 + raise % ÷ 100). For a 5% raise on $20/hr, that's $20 × 1.05 = $21/hr. You can also add a flat dollar amount or enter the new pay directly and the calculator works out the percentage for you.
Typical annual merit raises run about 3% to 5%, while promotions or job changes often bring 10% or more. The more important test is whether the raise beats inflation: a 3% raise in a year with 4% inflation is actually a real-pay cut. This tool shows your real, inflation-adjusted raise so you can judge it in buying power, not just on paper.
Inflation raises the price of the things you buy, so your raise has to outpace it just to keep the same standard of living. The calculator subtracts the latest CPI-U inflation rate (U.S. Bureau of Labor Statistics) from your raise to show the real raise. If inflation is higher than your raise, your buying power falls even though your paycheck is larger.
Multiply your hourly rate by your hours per week and by 52 weeks: annual = hourly × hours/week × 52. At $21/hr for 40 hours, that's $21 × 40 × 52 = $43,680 a year. The calculator does this both ways, so a change to your hourly rate updates the annual figure and vice versa.
No — taxes apply to the extra income, so your take-home rises by less than the gross raise. Federal income tax, Social Security and Medicare (FICA), and any state income tax all come out first. Use the paycheck calculator to see how much of the raise actually lands in your paycheck.
Either works; what matters is the final number. A percent is easy to compare across pay levels, while a dollar amount is concrete. Bring market data for your role and location, and aim for a figure that clears inflation plus the value you've added. The calculator lets you model all three so you can walk in with a specific target.
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