Raise Calculator: Average Raise Percentages, Negotiation Scripts & What to Expect
Quick Answer
- *Raise % = (New Salary − Old Salary) ÷ Old Salary × 100. A $70,000 salary going to $73,500 is a 5% raise.
- *The average salary increase budget in 2026 is 3.7–4.0%, per Mercer's 2026 Salary Increase Survey. High performers typically receive 5–8%.
- *A 5% raise compounds to $57,000 more salaryover 10 years than a 3% raise starting from $70,000 — the gap accelerates every year.
- *Switching jobs typically produces a 15–30% salary increase— far more than any annual merit raise.
The Raise Formula (And How to Use It)
There's one formula behind every raise calculation:
Raise % = (New Salary − Old Salary) ÷ Old Salary × 100
If your salary goes from $70,000 to $73,500, the math is: ($73,500 − $70,000) ÷ $70,000 × 100 = 5%.
You can run this in the other direction too. If you want a 7% raise from $85,000, the target is $85,000 × 1.07 = $90,950. Our Raise Calculator handles both directions automatically.
What Is a Good Raise in 2026?
Whether your raise is “good” depends on three things: the market rate for your role, your individual performance, and what your employer can afford. Here's where the benchmarks stand for 2026:
- WorldatWork 2025 Salary Budget Survey reported the average merit increase budget at 3.8% for 2025, down slightly from 4.0% in 2024 as labor market pressure eased.
- Mercer's 2026 Salary Increase Survey projects average increases of 3.7–4.0%across U.S. industries, with technology and healthcare leading at 4.2–4.5%.
- The U.S. Bureau of Labor Statistics Employment Cost Index (ECI) showed private-sector wages and salaries growing at 4.2% year-over-year as of Q3 2025.
- Korn Ferry's 2026 Salary Forecast puts average increases at 3.9%, with high performers (top 10%) receiving 1.5–2x the average.
- U.S. CPI inflation ran approximately 2.7%through late 2025. This means a 3% raise is only a 0.3% real wage gain — barely above flat.
The practical benchmark: anything below inflation is a pay cut in real terms. Anything at 5%+ is a genuine increase in purchasing power. Above 8%+ typically signals either high performance recognition or a promotion.
Raise Benchmarks by Scenario
| Scenario | Typical Raise Range | Notes |
|---|---|---|
| Cost of living / standard merit | 2–4% | Keeps pace with inflation; no real growth |
| Strong performance / high performer | 5–8% | Typically top 10–20% of staff |
| Promotion (same company) | 10–20% | Higher end for significant scope increase |
| Job change (new employer) | 15–30% | Most effective lever for salary growth |
| Counter-offer | 15–25% | Employers pay more to retain than recruit |
| Market correction (underpaid) | 10–20% | Bringing salary to market rate |
How Small Raise Differences Compound Over Time
The difference between a 3% and a 5% annual raise looks small in year one. It's not small over a career.
Starting salary: $70,000
| Year | 3% Annual Raise | 5% Annual Raise | 8% Annual Raise |
|---|---|---|---|
| Year 1 | $72,100 | $73,500 | $75,600 |
| Year 5 | $81,153 | $89,359 | $102,853 |
| Year 10 | $94,059 | $114,056 | $151,152 |
| Year 20 | $126,340 | $185,920 | $326,530 |
At year 10, the gap between 3% and 5% is $20,000 per year in salary. At year 20, it's nearly $60,000 per year. The 8% scenario — achievable through consistent job-hopping or promotions — produces a salary more than double the 3% path by year 20.
This is why career coaches emphasize changing jobs every 2–4 years. Annual merit increases rarely keep pace with what the market would pay for your skills if you were hired fresh.
5 Signs You're Underpaid and Should Ask for a Raise
- You've been here 12+ months without a raise.Standard review cycles are annual. If yours passed without discussion, that's a flag.
- You're doing the work of someone with a higher title.Scope creep is real. If your responsibilities grew but your pay didn't, you're effectively taking a pay cut.
- LinkedIn Salary or Glassdoor shows your role paying 10%+ more.Salary data lags, so if the market has already moved above you, you're behind.
- New hires in similar roles are being offered more than you make. This is common. Companies often pay more to recruit than to retain.
- You got a “great performance review” with no raise attached. Praise without a pay increase is a signal worth addressing directly.
How to Negotiate a Raise: Tactics That Work
Research consistently shows that most employees who ask for a raise receive one. A 2023 Fidelity Investments survey found that 85% of workers who negotiated their salary got more money— yet less than half of workers attempt to negotiate at all.
Before the Conversation
Prepare three things:
- Market data — Pull your salary range from Glassdoor, LinkedIn Salary, Levels.fyi (for tech), or the BLS Occupational Employment Statistics. Know the 50th and 75th percentile for your role, level, and location.
- Your impact in numbers — “I increased pipeline by $1.2M” is more compelling than “I worked really hard.” Quantify wherever possible.
- A specific number — Anchoring with a precise figure ($87,500 vs. “somewhere in the high 80s”) produces better outcomes, per research on negotiation anchoring effects.
During the Conversation
Lead with your value, not your needs. “Based on my contributions this year and the current market rate for this role, I'd like to discuss bringing my salary to $X” is stronger than “I need a raise because my rent went up.”
Ask for 10–15% above your actual target. This anchors the negotiation higher. If they counter at your real target, you haven't lost anything.
Silence is a tool. After stating your number, stop talking. Most people feel compelled to fill silence by softening their position.
If They Say No
Ask: “What would need to be true for me to get to $X by [specific date]?” This reframes the conversation from a closed door to a roadmap. Get the criteria in writing if possible.
4 Mistakes That Kill Your Raise Negotiation
- Making it personal or emotional.Your mortgage, your bills, your cost of living — these are your problem, not your employer's. The conversation should be about market value and performance, full stop.
- Accepting the first offer too fast.Even a polite “Thank you — can I have a day to think about it?” buys you leverage to counter.
- Asking without data.Walking in with nothing but “I feel like I deserve more” is easily dismissed. Come with numbers.
- Threatening to quit unless you're ready to quit.Empty ultimatums damage trust. A competing offer is powerful leverage only if you're genuinely willing to take it.
Industry Raise Averages: Where Your Sector Stands
Not all industries move at the same pace. Based on 2025–2026 compensation surveys:
| Industry | Avg. Salary Increase (2026 Projection) |
|---|---|
| Technology | 4.2–5.0% |
| Healthcare | 4.0–4.5% |
| Financial Services | 3.8–4.2% |
| Manufacturing | 3.5–4.0% |
| Retail / Hospitality | 3.0–3.5% |
| Nonprofit / Education | 2.5–3.5% |
| Government | 2.0–3.0% |
Sources: Mercer 2026 Salary Increase Survey, Korn Ferry 2026 Salary Forecast, WorldatWork 2025 Salary Budget Survey.
See your exact raise in dollars and percentage
Use our free Raise Calculator →Frequently Asked Questions
What is the average raise percentage in 2026?
The average salary increase budget in 2026 is 3.7–4.0%, according to Mercer and WorldatWork surveys. High performers typically receive 5–8%, while cost-of-living adjustments alone average 2.5–3.5%. Actual raises vary significantly by industry, company size, and individual performance rating.
How do you calculate a raise percentage?
Raise % = (New Salary − Old Salary) ÷ Old Salary × 100. For example, going from $70,000 to $73,500 is ($73,500 − $70,000) ÷ $70,000 × 100 = 5%. Use our Raise Calculator to run the math instantly for any salary combination.
Is a 3% raise good in 2026?
A 3% raise is at or slightly below average in 2026. With U.S. CPI inflation running around 2.5–3.0%, a 3% raise is roughly flat in real purchasing power. If your performance was above average, you likely have a case to negotiate for 5–7% or more.
How much does a raise compound over 10 years?
Starting at $70,000, a 3% annual raise reaches $94,059 after 10 years. A 5% raise reaches $114,056 and an 8% raise reaches $151,152. The difference between 3% and 5% over 10 years is $20,000/year — a gap that widens further as you progress in your career.
How much should you ask for when negotiating a raise?
Ask for 10–20% above what you expect to receive. This anchors the conversation higher and leaves room to meet in the middle. Come with 3 specific data points: your market rate from sources like Glassdoor or LinkedIn Salary, your measurable achievements from the past year, and the raise percentages your company or industry typically provides.
When is the best time to ask for a raise?
The best times are: during your annual performance review (when salary decisions are actively being made), after completing a major project or exceeding a key metric, or when you receive a competing job offer. Avoid asking during layoffs, budget freezes, or when your manager is under visible stress.