5% Raise Calculator
See exactly how a 5% raise affects your salary — from annual down to each paycheck. A 5% raise is generally considered above average.
How Much Is a 5% Raise?
Here's what a 5% raise looks like at different salary levels:
| Current Salary | Raise Amount | New Salary | Per Paycheck |
|---|---|---|---|
| $30,000 | +$1,500 | $31,500 | +$57.69 |
| $40,000 | +$2,000 | $42,000 | +$76.92 |
| $50,000 | +$2,500 | $52,500 | +$96.15 |
| $60,000 | +$3,000 | $63,000 | +$115.38 |
| $75,000 | +$3,750 | $78,750 | +$144.23 |
| $100,000 | +$5,000 | $105,000 | +$192.31 |
Per paycheck = biweekly (26 pay periods/year), before taxes.
Is a 5% Raise Good?
A 5% raise is above the national average and comfortably beats the current inflation rate of approximately 3.3% (BLS, March 2026), giving you about 1.8% in real purchasing power growth. This is typically awarded for strong performance — your employer is signaling that you're a valued contributor. Most employees receive 3-4%, so 5% puts you ahead of your peers.
Weighing a 5% raise against another offer? Compare both raises side by side to see the exact difference in annual salary, monthly income, and estimated take-home pay.
A single 5% raise is one thing — but what happens when you get 5% every year? Use the annual raise calculator to see how 5% compounds over 5, 10, or 20 years.
When 5% is genuinely good:
5% exceeds the average employer total salary increase budget (~3.5% per Mercer 2026) and beats the 3.3% CPI inflation rate. It signals above-average performance and grows your real purchasing power by roughly 1.7 percentage points.
When 5% may not be enough:
If you're significantly below market rate for your role (check Levels.fyi or Glassdoor), or if you could get 10-20% by switching employers. A 5% internal raise can look small next to an external move.
Bottom line: 5% is 'above average' by 2026 standards — a clear positive signal from your employer, though not life-changing.
How 5% compares:
2-3%
Cost of living
3-6%
Merit raise
10-20%+
Promotion
Calculate Your 5% Raise
Your Salary
Your Raise
$2,500.00
+5.00% increase
New Annual Salary
$52,500.00
from $50,000.00
Per Paycheck
+$96.15
bi-weekly increase
After-Tax Increase
+$1,950.00
estimated annual take-home
Hourly
+$1.20
Before
$24.04
After
$25.24
Weekly
+$48.08
Before
$961.54
After
$1,009.62
Bi-Weekly
+$96.15
Before
$1,923.08
After
$2,019.23
Monthly
+$208.33
Before
$4,166.67
After
$4,375.00
Annual
+$2,500.00
Before
$50,000.00
After
$52,500.00
| Period | Before | After | Increase |
|---|---|---|---|
| Hourly | $24.04 | $25.24 | +$1.20 |
| Weekly | $961.54 | $1,009.62 | +$48.08 |
| Bi-Weekly | $1,923.08 | $2,019.23 | +$96.15 |
| Monthly | $4,166.67 | $4,375.00 | +$208.33 |
| Annual | $50,000.00 | $52,500.00 | +$2,500.00 |
After-Tax Impact
$43,947.00 → $45,897.00 (+$1,950.00/yr)
Est. US federal effective rate. Varies by state and deductions.
Real Raise (Inflation-Adjusted)
Your raise: 5.0% — Inflation (CPI): 3.3% → Real purchasing power change: +1.7%
Estimates are for informational and planning purposes only. They do not constitute financial, tax, or legal advice. See our disclaimer.
5% Raise Questions
- Is a 5% raise above average?
- Yes, a 5% raise is above the national average of 3-4% for annual merit increases. It comfortably beats the current inflation rate of approximately 3.3% (BLS, March 2026), giving you about 1.8% in real purchasing power growth. A 5% raise is typically awarded for strong performance and signals that your employer considers you a valued contributor. Most employees receive 3-4%, so 5% puts you meaningfully ahead of your peers.
- How much is a 5% raise on a $60,000 salary?
- A 5% raise on a $60,000 salary adds $3,000 per year to your gross income, bringing your new salary to $63,000. That translates to $250 more per month or approximately $115.38 more per biweekly paycheck before taxes. After taxes (assuming a 22-24% marginal federal rate plus state taxes), you can expect roughly $85-90 extra per biweekly paycheck in your bank account.
- Is a 5% raise better than a promotion?
- It depends on the promotion. Many promotions come with raises of 10-20%, so a 5% raise without a title change may be less financially impactful than a promotion. However, a 5% raise with no additional responsibilities can be better value for your time — you earn more without extra stress. If you are offered 5% instead of a promotion you were expecting, it is worth asking your manager about the timeline for advancement and whether this raise puts you on track for the next level.
- Should I expect a 5% raise every year?
- Receiving 5% annually is uncommon but not impossible. Most companies budget 3-4% for annual raises, so consistently getting 5% requires you to be a top performer — typically in the top 10-20% of your team. Factors that sustain 5%+ raises include: being in a high-demand field, consistently exceeding targets, taking on additional responsibilities, and working at a company with healthy revenue growth. If your raises have been declining toward 3%, it may signal that it is time to negotiate or explore other opportunities.