Pay Raise Calculator
What your raise is really worth after tax and inflation
Real (Inflation-Adjusted) Raise
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This pay raise calculator shows what your raise is actually worth once taxes and inflation are accounted for. It applies your marginal federal tax rate plus 7.65% payroll tax to find your real take-home increase per month, and adjusts for inflation to reveal your true 'real' raise — often far smaller than the headline number.
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Frequently Asked Questions
How do I calculate my real pay raise?
Start with the headline raise percentage, then subtract what taxes and inflation take. Taxes reduce the cash you keep (your marginal federal rate plus 7.65% payroll tax), and inflation reduces what that money buys. This calculator does both: it shows your after-tax take-home increase and your inflation-adjusted "real" raise.
Why is my raise worth less than the percentage?
Two reasons. First, the extra income is taxed at your marginal rate (often 22%+ federal) plus 7.65% Social Security and Medicare — so you keep roughly 65–75 cents of each raise dollar. Second, if prices rise 3%, a 3% raise leaves your buying power flat. A "5% raise" can be a ~1–2% real gain.
What raise do I need to keep up with inflation?
At least the inflation rate. With 2026 inflation around 3.3%, a raise below 3.3% is effectively a pay cut in real terms — your salary buys less than it did last year. To get ahead, your raise needs to exceed inflation.
Is the after-tax figure exact?
It is a close federal estimate. It applies your marginal federal bracket plus 7.65% payroll tax to the raise amount. It does not include state income tax, which would lower the take-home figure further in most states.
Should I negotiate based on gross or real raise?
Understand both. Negotiate the gross number (that is what employers quote), but evaluate the offer using the real, after-inflation figure. If inflation is 3.3% and you are offered 3%, you are technically going backward and have a strong case to ask for more.