What's a Good Raise Percentage?
Last updated: August 13, 2026
"Good" is doing a lot of work in that question, because a raise percentage on its own doesn't say much. A 4% raise on a $40,000 salary and a 4% raise on a $120,000 salary are the same percentage but very different dollar amounts, and a 4% raise during a year of 6% inflation is a pay cut in real terms even though the number went up. Judging a raise fairly means looking at three things together: how it compares to typical raises for your situation, what it means in actual dollars per paycheck, and what it's worth after inflation.
Typical raise ranges
Annual merit raises in the US typically land in the 3% to 4.5% range, the standard cost-of-living-plus-performance bump most employees see in a normal year without a change in role. Promotions run considerably higher, often 8% to 15% or more, since they usually come with a real increase in scope or responsibility rather than just a retention adjustment. Raises tied to a counteroffer or a competing job offer can run higher still, since they're priced against what the market is actually paying, not an internal budget for merit increases.
| Raise type | Typical range |
|---|---|
| Standard annual merit raise | 3% – 4.5% |
| Strong performance raise | 5% – 7% |
| Promotion raise | 8% – 15%+ |
| Below-average / cost-cutting year | 0% – 2% |
Why the percentage alone can mislead you
The gap between a nominal raise (the percentage on paper) and a real raise (what it's worth after inflation) is where most raise disappointment comes from. A 5% raise during a year of 3% inflation is only about a 1.9% real improvement in what you can afford, not the full 5% it looks like on a pay stub. During a higher-inflation year, a raise that sounds generous can end up flat or even negative in real terms. This is the exact comparison the pay raise calculator's real-vs-nominal section is built to show: enter your raise and an inflation rate, and it converts the headline percentage into what it's actually worth.
How to judge an offer
Three questions, in order: How does this compare to the typical range for this type of raise? What does it add to an actual paycheck, not just the annual total? And after accounting for inflation that year, is it a real gain or close to flat? The pay raise calculator answers all three from one input, including the paycheck-level dollar amount and the target-salary mode for working backward from the number you actually want.
Frequently asked questions
What is a good raise percentage?
A typical annual merit raise in the US lands somewhere around 3% to 4.5%, with promotions running higher, often 8% to 15% or more depending on the change in responsibility. Whether a given percentage is "good" depends less on the number alone and more on how it compares to inflation that year and to raises for similar roles at similar companies.
Is a 3% raise good?
A 3% raise is close to the typical US merit-raise average, so it's a normal, not a strong, outcome. Whether it's good in real terms depends on inflation that year: a 3% raise during 3% inflation is essentially a 0% real raise, meaning your buying power stayed flat even though the number on your paycheck went up.
Is a 5% raise good?
A 5% raise is above the typical merit-raise range and is generally considered a strong annual increase outside of a promotion. During a year of average inflation (around 2% to 3%), a 5% raise still represents a real, meaningful gain in purchasing power, not just a cost-of-living adjustment.
What raise percentage should I ask for?
Anchor the ask to evidence: your role's typical merit-raise range, what comparable roles pay at other companies, and the specific impact you've had since your last raise. If the goal is a specific new salary, the pay raise calculator's "target salary" mode works backward from that number to the exact percentage you need to ask for, so you walk in with a figure you can justify instead of guessing.