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Dollar Raise Chart: How Much Is a $1, $2 or $3 Raise a Year?

A $1 an hour raise is $2,080 more a year at 40 hours a week for 52 weeks. A $2 raise is $4,160, a $3 raise is $6,240 and a $5 raise is $10,400. Work fewer hours and the yearly amount falls in proportion — the second chart shows part-time totals.

Rule of thumb: each extra dollar an hour is worth about $2,000 a year full time. The exact multiplier is 2,080 — 40 hours × 52 weeks.

Dollar raise chart: full time (40 hours a week)

Value of an hourly raise at 40 hours a week
Raise per hour Extra per week Extra every 2 weeks Extra per month Extra per year
$0.25 $10.00 $20.00 $43.33 $520
$0.50 $20.00 $40.00 $86.67 $1,040
$0.75 $30.00 $60.00 $130.00 $1,560
$1 $40.00 $80.00 $173.33 $2,080
$1.25 $50.00 $100.00 $216.67 $2,600
$1.50 $60.00 $120.00 $260.00 $3,120
$2 $80.00 $160.00 $346.67 $4,160
$2.50 $100.00 $200.00 $433.33 $5,200
$3 $120.00 $240.00 $520.00 $6,240
$3.50 $140.00 $280.00 $606.67 $7,280
$4 $160.00 $320.00 $693.33 $8,320
$5 $200.00 $400.00 $866.67 $10,400
$6 $240.00 $480.00 $1,040.00 $12,480
$7 $280.00 $560.00 $1,213.33 $14,560
$8 $320.00 $640.00 $1,386.67 $16,640
$9 $360.00 $720.00 $1,560.00 $18,720
$10 $400.00 $800.00 $1,733.33 $20,800

A dollar raise at part-time hours

The hourly gain is the same whatever your schedule — there are simply fewer paid hours for it to apply to. Yearly totals at 52 paid weeks:

Yearly value of an hourly raise by hours worked per week
Raise per hour 20 hrs/week 25 hrs/week 30 hrs/week 35 hrs/week 40 hrs/week
$0.50 $520 $650 $780 $910 $1,040
$1 $1,040 $1,300 $1,560 $1,820 $2,080
$1.50 $1,560 $1,950 $2,340 $2,730 $3,120
$2 $2,080 $2,600 $3,120 $3,640 $4,160
$3 $3,120 $3,900 $4,680 $5,460 $6,240
$4 $4,160 $5,200 $6,240 $7,280 $8,320
$5 $5,200 $6,500 $7,800 $9,100 $10,400

What percentage is a dollar raise?

A flat raise is worth a different percentage to everyone, because it is measured against what you already earn. The same $2 is a 10% raise on $20 an hour and 5% on $40. Divide the raise by your current rate and multiply by 100.

An hourly raise as a percentage of common hourly rates
Raise per hour On $15/hr On $18/hr On $20/hr On $25/hr On $30/hr On $40/hr
$0.50 3.3% 2.8% 2.5% 2% 1.7% 1.3%
$1 6.7% 5.6% 5% 4% 3.3% 2.5%
$1.50 10% 8.3% 7.5% 6% 5% 3.8%
$2 13.3% 11.1% 10% 8% 6.7% 5%
$3 20% 16.7% 15% 12% 10% 7.5%
$4 26.7% 22.2% 20% 16% 13.3% 10%
$5 33.3% 27.8% 25% 20% 16.7% 12.5%

How the number is worked out

Yearly increase = Raise per hour × Hours per week × Paid weeks per year

Full time that is raise × 40 × 52. Hourly jobs often have no paid time off, so if you take two unpaid weeks use 50 weeks instead of 52. Overtime paid at time and a half raises the total, because the higher rate applies to those hours too.

Try it with your own rate

Use 52 paid weeks for a standard year. Reduce it if you have unpaid time off. Daily figures assume a five-day week.

Annual pay $52,000
Pay by period
Daily (5-day week) $200.00
Weekly $1,000.00
Biweekly $2,000.00
Semimonthly $2,166.67
Monthly $4,333.33
Annual $52,000

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Gross figures are mathematical results based only on the values you enter. This is not a payroll, tax, legal, or financial-advice calculation.

Dollar raise or percentage raise?

A flat dollar raise is worth proportionally more to lower earners, which is why it is common in across-the-board and union settlements. A percentage raise keeps existing pay gaps the same. Neither is better in itself — they share out the same budget differently.

Every figure on this page is gross pay — the amount before income tax, insurance, and retirement contributions are deducted. What reaches your bank account depends on your filing status, location, and benefit elections, none of which this page knows.

Related

Common questions

How much is a $2 raise a year?

$4,160 a year at 40 hours a week for 52 weeks — $80 more per week, or $160 more in each biweekly paycheck, before deductions.

How much is a $1 raise a year?

$2,080 a year full time. At 30 hours a week it is $1,560, and at 20 hours a week $1,040.

Is a $3 raise good?

It depends on what you earn now. On $20 an hour a $3 raise is 15%, which is well above a typical annual raise. On $40 an hour it is 7.5%. Judge it against your current rate and against inflation.

Will I take home the full amount?

No. The raise is added to your gross pay and taxed at your marginal rate, so the change on your payslip is smaller than the chart shows.

How much is a $5 raise per year?

A $5 an hour raise is $10,400 a year at 40 hours a week for 52 weeks (2,080 hours) — $866.67 a month and $400 in each biweekly paycheck, before tax.

Is a $5 an hour raise good?

Yes — on $20 an hour it is a 25% increase: $10,400 more a year, taking you to $25 an hour ($52,000 a year). Typical annual raises run 3% to 5%, so $5 an hour is well above average at most pay rates.