Category
Career
Raise Impact Calculator
Compare current vs new salary and estimate gross and net paycheck impact
Estimated time
1 min
Raise Comparison Inputs
Compare your current and proposed salary and estimate both gross and net changes per year and per paycheck.
$
$
One blended tax rate is applied to both salaries for a simple net-change estimate. Adjust if you want conservative or optimistic scenarios.
%
Pay period selection converts annual gross and net raise changes into per-paycheck impact.
Formula Summary
Annual gross change = new salary - current salary
Raise % = annual gross change / current salary
Annual net estimate = salary x (1 - estimated tax rate)
Annual net change = new annual net estimate - current annual net estimate
Per paycheck net change = annual net change / pay periods per year
How It Works
This calculator focuses on deltas, showing how a raise changes your annual and paycheck-level outcomes.
Net impact uses one effective tax assumption to keep scenarios easy to compare.
- Annual gross change = new salary - current salary.
- Raise percentage = annual gross change / current salary.
- Annual net values apply the same estimated effective tax rate to both salaries.
- Per paycheck changes are based on selected pay periods per year.
- If your tax mix changes materially at the new income level, update assumptions and recheck results.
Example Calculations
Promotion scenario
$88,000 current, $98,000 new, 24% estimated tax rate, bi-weekly pay
+$10,000 annual gross and +$292.31 estimated net per paycheck
Per-paycheck net change often communicates impact more clearly than annual gross alone.
Merit increase
$72,000 current, $75,600 new, 22% estimated tax rate, semi-monthly pay
+$3,600 annual gross and +$117.00 estimated net per paycheck
Smaller raises can still produce meaningful monthly cash-flow improvement.
Comp adjustment with monthly payroll
$105,000 current, $112,000 new, 26% estimated tax rate, monthly pay
+$7,000 annual gross and +$431.67 estimated net per month
Monthly payroll cadence can make changes feel larger at each paycheck.
Frequently Asked Questions
Why use one tax rate for both salaries?
It keeps the comparison simple and consistent. You can adjust the rate to test conservative or optimistic outcomes.
Can this include bonus or equity changes?
This calculator models salary-only deltas. Use the bonus tax impact calculator separately for bonus scenarios.
What if new salary is lower?
Negative changes are shown directly so you can assess downside impact with the same assumptions.
Does this include retirement contribution changes?
No. Adjust salary or tax assumptions manually if your deduction strategy changes with the raise.
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