Start with how you are paid
In the United States, compensation is usually quoted as an hourly wage or an annual salary, then paid on a schedule: weekly, bi-weekly (26 times a year), semi-monthly (24 times), or monthly. Always convert to the same unit before comparing raises.
Formula for a percentage raise
New pay = Current pay × (1 + Raise % ÷ 100)A 4% merit raise on a $75,000 salary is $75,000 × 1.04 = $78,000 — a $3,000 annual increase.
The same percent applies to hourly pay: $20.00 × 1.04 = $20.80 per hour.
Convert hourly to annual (U.S. full-time)
Annual gross = Hourly rate × Hours per week × 52Full-time is commonly modeled as 40 × 52 = 2,080 hours per year. Overtime, unpaid time off, or part-time schedules change the annual figure — adjust hours and weeks in the calculator.
Bi-weekly vs semi-monthly
These two U.S. schedules are often confused:
- Bi-weekly — paid every other week → 26 paychecks
- Semi-monthly — paid twice a month → 24 paychecks
On a $62,400 salary, bi-weekly gross is about $2,400; semi-monthly is $2,600. Your raise percentage is the same either way; only the paycheck size differs.
Don't forget taxes and inflation
Employee FICA is generally 7.65% of wages (up to the Social Security wage base for the 6.2% portion). Federal and state income taxes further reduce take-home. Compare your raise to CPI inflation: a 3% raise with 3.5% inflation is a real-pay cut in buying power.
Try your numbers
Open the USA pay raise calculator to enter percent, flat dollars, or a target new pay and see before/after amounts for every U.S. pay period.