Worked example: 5% on $70,000
The raise is $3,500 a year, $134.62 per bi-weekly check gross, roughly $97 net. After 2.6% inflation the real gain is 2.4% — about $1,680 of actual new purchasing power per year. Worth taking, worth being honest about: if you were hoping the raise changes your savings rate, it moves it by about $140 a month.
- • Asking for 10% and landing at 7% beats asking for 4% and landing at 3%.
- • Bring market data (levels.fyi, BLS, posted salary ranges) — not personal expenses — to the ask.
- • Non-salary asks (title, PTO, remote days, review timing) often clear when salary is frozen.
FAQ
How do I calculate a raise percentage?
Divide the dollar increase by the current salary and multiply by 100. $3,500 on $70,000 is a 5% raise. Going the other way, multiply salary by the percentage: $70,000 × 0.05 = $3,500.
What is a good raise percentage in 2026?
Average merit budgets are running 3.5–4%. A 5–7% raise is strong for the same role; 8–12% typically signals a promotion or market adjustment. Below inflation (≈2.6%) is a real-terms pay cut.
Is a $5,000 raise good?
It depends on the base: on $50,000 it is a strong 10%; on $100,000 it is an average 5%; on $150,000 it is a below-market 3.3%. Always convert flat raises to percentages before judging them.
Should I switch jobs for a bigger raise?
Statistically yes — job switchers have historically out-earned stayers by 10–20% versus 3–5% annual merit. But weigh total compensation, vesting equity, and the risk premium of a new role, not just base.
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Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
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