Evaluate pay raises by percentage or flat dollar amount: see your new gross salary, extra cash per paycheck, hourly increase, and compounding multi-year earnings projection.
Mathematical Formula
New Salary = Current Salary × (1 + Raise %); Raise Per Check = Dollar Increase / Pay Periods Per Year.
Frequently Asked Questions
How do compounding annual raises build wealth over time?
Consistent 4% to 5% annual performance raises build on previous raises, meaning your salary grows exponentially rather than linearly, often adding 25% or more to your baseline compensation over 5 years.
How much of my raise will I actually keep after taxes?
Because pay raises are taxed at your marginal rate rather than your lower effective rate, expect federal and state taxes plus payroll deductions to absorb roughly 25% to 35% of the increase depending on your tax bracket.