What Percent Raise Is Good? Salary Increase Benchmarks
2026-10-07
Whether you are going through an annual review, negotiating a promotion, or comparing job offers, it helps to know what a good raise looks like. This guide explains how common raise percentages compare so you can judge whether your increase is above or below average.
What percent raise is good?
A good raise is often one that exceeds the typical annual increase and improves your earning power. For many employees, a raise of 3% is considered average, 5% is considered strong, and 10% or more is often viewed as an excellent raise. However, what counts as a good raise depends on inflation, job performance, industry, and whether the increase is tied to a promotion.
Quick answer
| Raise Percentage | Common Interpretation |
|---|---|
| 1%–2% | Small raise |
| 3% | Typical annual raise |
| 4%–5% | Good raise |
| 6%–9% | Very good raise |
| 10%+ | Excellent raise |
| 15%+ | Promotion-level raise |
Key takeaways
- A typical annual raise is about 3%.
- A raise of 4% to 5% is generally good, and 10% or more is excellent.
- Promotion raises are usually larger, often 8% to 15% or more.
- A raise only improves your buying power if it is higher than inflation.
- A good raise depends on more than the percentage: inflation, market pay, and your responsibilities all matter.
Calculate your raise
Use our raise calculator to instantly see your raise amount, new salary, and monthly and yearly increase.
What is considered a good raise?
A raise is generally considered good when it:
- Exceeds the typical annual increase
- Keeps pace with inflation
- Reflects strong performance
- Improves long-term earnings
A good raise is not only about the percentage. It also depends on how the increase compares to inflation, market salaries, and your responsibilities.
Is a 3% raise good?
A 3% raise is commonly viewed as a standard annual increase.
Salary: $50,000
Raise: 3%
Raise amount: $1,500
New salary: $51,500
Read the full guide: Is a 3% Raise Good?
Is a 5% raise good?
A 5% raise is often considered a strong raise because it exceeds many standard annual increases.
Salary: $50,000
Raise: 5%
Raise amount: $2,500
New salary: $52,500
Read the full guide: Is a 5% Raise Good?
Is a 7.5% raise good?
A 7.5% raise is typically viewed as very strong and may reflect exceptional performance or increased responsibilities.
Read the full guide: Is a 7.5% Raise Good?
Is a 10% raise good?
A 10% raise is generally considered excellent because it is significantly above most annual raises.
Salary: $50,000
Raise: 10%
Raise amount: $5,000
New salary: $55,000
Read the full guide: Is a 10% Raise Good?
Is a 15% raise good?
A 15% raise is often associated with promotions, market adjustments, or major responsibility increases.
Read the full guide: Is a 15% Raise Good?
Good raise vs promotion raise
| Raise Type | Typical Percentage |
|---|---|
| Annual raise | 2%–5% |
| Strong annual raise | 5%–7% |
| Promotion raise | 8%–15% |
| Major promotion | 15%–20%+ |
Promotion raises are usually larger because they reward a bigger role: more responsibility, a higher level of skill, and often a new market pay range. An annual raise, by comparison, mostly keeps your pay in step with the cost of living and your performance.
Learn more:
What percent raise beats inflation?
A raise only improves your purchasing power if it exceeds inflation.
| Inflation | Raise | Result |
|---|---|---|
| 2% | 3% | Real gain |
| 3% | 3% | Break even |
| 5% | 3% | Real loss |
| 5% | 10% | Real gain |
A raise that exceeds inflation increases your real income.
What percent raise is good for different situations?
| Situation | Good Raise Range |
|---|---|
| Annual performance review | 3%–5% |
| Strong performance year | 5%–8% |
| Promotion | 8%–15% |
| Management promotion | 10%–20% |
| Exceptional career advancement | 15%+ |
Examples of good raises
| Current Salary | Raise | Raise Amount | New Salary |
|---|---|---|---|
| $40,000 | 5% | $2,000 | $42,000 |
| $60,000 | 10% | $6,000 | $66,000 |
| $80,000 | 15% | $12,000 | $92,000 |
How good raises affect long-term earnings
Each raise builds on the one before it, so bigger raises early on keep paying off. Here is a $50,000 salary under two paths:
Path A: a 10% raise, then two 5% raises
Starting salary: $50,000
After 10% raise: $55,000
After 5% raise: $57,750
After 5% raise: $60,638
Path B: three 3% raises
After three raises: about $54,636
After three raises, Path A leaves you about $6,000 per year ahead of Path B, and that gap carries into every later raise.
When is a raise not good?
A raise may not be good in situations such as:
- Below inflation: your buying power shrinks even though your pay went up.
- Significant workload increase: you are doing much more for the same pay.
- Promotion with minimal pay increase: the new title does not come with matching pay.
- Salary still below market rate: similar jobs pay noticeably more.
For example, a 3% raise may feel small if your responsibilities increased dramatically during the year.
How to calculate a raise percentage
Raise % = (New Salary − Old Salary) ÷ Old Salary × 100
Example:
Old salary: $50,000
New salary: $55,000
Raise %: ($55,000 − $50,000) ÷ $50,000 × 100 = 10%
For more examples, see how to calculate percentage of salary increase.
Use our raise calculator
Skip the math and use our Raise Calculator to calculate:
- Raise amount
- New salary
- Monthly increase
- Annual increase
Related raise guides
You may also find these helpful:
- Is a 2% Raise Good?
- Is a 3% Raise Good?
- Is a 4% Raise Good?
- Is a 5% Raise Good?
- Is a 7.5% Raise Good?
- Is a 10% Raise Good?
- Is a 15% Raise Good?
- What Is Considered a Large Raise?
- What Is a Standard Yearly Raise?
- Average Annual Salary Increase Percentage
Frequently asked questions
What percent raise is considered good? Many employees consider a raise of 4% to 5% good, while raises of 10% or more are often viewed as excellent.
Is a 3% raise good? A 3% raise is generally considered a typical annual increase.
Is a 5% raise good? A 5% raise is often viewed as a strong raise because it exceeds many standard annual increases.
Is a 10% raise good? A 10% raise is usually considered excellent and significantly above average.
What is a typical annual raise? Many annual raises fall between 2% and 5%, depending on the employer and economic conditions.
What raise percentage is common for promotions? Promotion raises often range from 8% to 15%, with larger increases possible for leadership roles.
Conclusion
A good raise exceeds the typical annual increase, keeps pace with inflation, and reflects your performance and responsibilities. A 3% raise is typical, 4% to 5% is good, and 10% or more is excellent, while promotions usually come with larger increases of 8% to 15% or more.
Use these benchmarks along with your local market rates to decide whether your raise is fair, and use our raise calculator to see exactly what it adds to your pay.