New salary after the raise
A percentage raise scales your whole salary: $60,000 at 5% adds $3,000, so you land on $63,000. A flat-dollar raise works the other way — a $3,000 bump on $60,000 is that same 5%, found as amount ÷ current salary.
What the raise looks like per paycheck
Spread an annual increase across the year to see the real difference in each check. Divide by 12 for monthly, 26 for biweekly, and 2,080 (40 hours × 52 weeks) for an hourly rate.
| Annual raise | Monthly | Biweekly | Per hour |
|---|---|---|---|
| $2,000 | $167 | $77 | $0.96 |
| $3,000 | $250 | $115 | $1.44 |
| $5,000 | $417 | $192 | $2.40 |
| $10,000 | $833 | $385 | $4.81 |
These are gross figures. A $5,000 raise usually nets around $3,250 to $3,750 after tax, and a higher tax bracket can quietly eat part of it.
Nominal vs real: what the raise is worth after inflation
The number on your offer is nominal. What matters is the real raise — what is left once you subtract inflation. A raise below the inflation rate is a cut in buying power even though the dollar figure went up.
- 5% raise, 3% inflation → about +1.9% real. A genuine improvement.
- 3% raise, 3% inflation → 0% real. Your buying power stands still.
- 2% raise, 4% inflation → about −1.9% real. A raise on paper, a cut in practice.
- Raise beats a bonus long-term — $3,000 added to salary repeats every year and lifts the base for future percentage raises; a one-time $3,000 bonus is just that once.
Common questions
How much is a 5% raise on $60,000?
$3,000 more a year, taking you to $63,000. That works out to about $250 a month, $115 every two weeks, or $1.44 an hour on a 40-hour week.
What percentage raise did I get?
Subtract your old salary from the new one, divide by the old salary, then multiply by 100. Going from $55,000 to $58,000 is (58000 - 55000) / 55000 x 100, which is a 5.45% raise.
Is a 3% raise good?
It depends on inflation. If prices are rising 3%, a 3% raise just keeps you level; if inflation is 5%, a 3% raise is really a pay cut of about 2%. A raise that beats inflation by one to three points is a genuine gain.
