What to actually ask for.
Most “raise calculators” just spit out the merit-pool average. This one separates two things people conflate: the raise that recovers what inflation took, and the raise on top of that. Then it hands you a script in your own numbers.
US CPI averaged ~3.4% over the last few years; edit if yours differs.
Performance signal
Role band
What to actually ask for
Target ask: +$7,645 (9.0%)
That brings you to $92,645. Below that, you’re losing ground to inflation faster than you’re recovering.
Stretch (open here)
+$8,256
9.7% — anchor higher
Target (real ask)
+$7,645
9.0% — the number to land on
Walk away (floor)
+$5,878
6.9% — just keeps pace with CPI
The honest math.
Inflation drag. Over 2 years at 3.4% CPI, your salary’s purchasing power dropped by roughly $5,498. Your $85,000 today buys what $79,502 bought then.
Inflation recovery. Just to break even in real terms, your salary should rise by $5,878 (6.9%). Anything below that is, after inflation, a pay cut.
Merit-pool ask. Starting from a ~3.4% baseline and adjusting for performance and band: roughly $7,645. The target is the higher of these two — getting the merit number on top of the inflation floor.
The ask, in your words.
Paraphrase — don’t read it. Use your real numbers, your real tone.
I'd like to talk about adjusting my compensation. I'm currently at $85,000 and it's been about 2 years since my last increase. With inflation over that period, the real value of my salary has dropped by roughly $5,498 — so even staying flat would mean keeping up. Based on the work I've done and where the market sits, I'd like to discuss bringing the salary to $92,645, which is a 9.0% increase. Could we walk through that?
How to read this. The math is honest but the numbers come from broad averages — your actual market gap depends on your specific role, location, and the last comp survey your manager has access to. Use this as a floor for the conversation, not a ceiling. If you’re considering changing jobs, the “target ask” here is usually below what a competing offer would bring.
Who it's for
Use this if…
You're heading into a salary review, a job-change conversation, or a manager 1:1 and want to walk in with a number that's defensible — not a vibe. Works the same in USD and CAD.
How it works
The math, in plain English.
The calculator runs two numbers in parallel and shows you whichever is larger. The first is the inflation-recovery raise: what you'd need just to keep your purchasing power flat against the CPI you set. The second is the merit-pool raise: a baseline of 3.4% (the US 2024–25 median merit budget) scaled by your performance signal and role band, compounded over the years since your last increase.
The 'target ask' is the higher of those two. The stretch ask is anchored 8% above target (so you have room to negotiate down). The walk-away floor is the inflation-recovery number — accepting less is, in real-purchasing-power terms, a pay cut.
Finally it generates the paragraph you'd actually say, using your own dollar amounts. The phrasing is for paraphrasing, not reading verbatim.
Assumptions
What it skips on purpose.
- The CPI you enter is treated as constant year-over-year. Real CPI varies; the calculator uses the same rate for every year since your last raise.
- Performance-signal bumps assume a typical merit budget (~3.4%). Your employer's actual budget and band guidelines override this — check before walking in.
- Stock comp, signing bonuses, retention grants, and one-time bonuses are NOT modeled. The calculator targets BASE-SALARY changes only.
- Promotions (level changes) typically pay more than the merit-pool ceiling here. If you're asking for a promotion, treat this output as the floor, not the ceiling.
- Geographic adjustments, equity refresh, and cost-of-living escalators are ignored.
FAQ
Quick answers.
How much of a raise is reasonable to ask for in 2026?
If it's been a year since your last raise and CPI was around 3%, you need ~3% just to stay flat. The merit-pool baseline adds another ~3% (more for strong performers). So 5–7% is a defensible 'standard' ask. Stronger cases (you've taken on new scope, market data shows you're underpaid, multiple high-performance ratings) push it to 8–15%.
Should I bring outside offers to a salary negotiation?
Only if you're prepared to actually take one. Bluffing offers backfires loudly. If you do have a real outside offer, framing it as 'I'd rather stay; here's what I'd need to' is the strongest position — far better than 'beat this offer or I'm leaving'.
What if my last raise was a promotion — does that count?
A promotion's bigger jump compresses the timeline. If the promotion was less than 18 months ago, the calculator usually overstates. Pick a 'last raise' date that reflects when your base salary last moved, but be conservative on the merit-pool calculation in your head if the gap was a level change.
Is asking for a 20% raise unreasonable?
It depends on the gap. If you've been at the same company for 5 years and never asked, your salary has often drifted 15–25% below market by now (because companies budget the merit pool against existing salary, and existing salaries stick). Quitting and being rehired at a 20% bump is a common scenario; asking before quitting is just the same conversation, earlier.
Does this work for hourly or contract work?
For hourly, treat your 'current salary' as effective annual (hourly × hours × weeks). For 1099/contract, the merit-pool framing doesn't really apply — use the inflation-recovery number as your minimum, and add a market-rate adjustment based on what you'd charge today as a new client.
Related
Pair it with these.
Sources
Where the numbers come from.
General information, not personalized financial, tax, or legal advice. Estimates depend on the assumptions above; your real result will vary. See the editorial standards for the sourcing policy.