How to negotiate a raise (with actual numbers)

Most people negotiate salary a handful of times in their lives against managers who discuss compensation every quarter. This guide closes some of that gap with the numbers, the timing, and the words.

Know what a raise is worth (and costs)

At a 22% federal bracket plus 7.65% FICA, roughly 70 cents of each raise dollar reaches your pocket before state tax. But raises compound: a 5% raise on $70,000 is $3,500 in year one and — because every future percentage builds on the higher base — typically $40,000+ over a decade with ordinary follow-on increases. Run scenarios in our pay raise calculator.

For employers, replacing you costs an estimated 50–200% of your annual salary in recruiting, ramp-up and lost knowledge (SHRM's long-cited range). A reasonable raise is almost always cheaper than a resignation. That's your leverage — used politely.

Benchmarks: what's normal

• Merit increases have recently averaged 3–4% in U.S. salary budgets (WorldatWork/Mercer surveys).
• Promotions typically carry 8–15%.
• Job switchers historically out-gain stayers by several points of wage growth (Atlanta Fed Wage Growth Tracker) — the credible alternative that anchors any negotiation.
• Asking for 10–15% above your current pay with market evidence is assertive but standard; 25%+ usually requires a role change or a competing offer.

Build the case file

1. Market data. Pull ranges for your title, level and metro from at least three sources (BLS Occupational Employment and Wage Statistics, Levels.fyi for tech, LinkedIn/Glassdoor/Payscale, posted salary ranges — now legally required in Colorado, California, New York, Washington and a growing list of states).
2. Impact inventory. Six to ten bullet points of shipped results with numbers: revenue touched, costs cut, incidents prevented, people mentored. "Owns the reporting pipeline" is a duty; "cut monthly close from 9 days to 4" is a raise.
3. Scope changes. Anything you now do that wasn't in your job when your pay was set is your strongest argument — you're asking to be paid for the job you already do.

Timing

Best moments, in order: with a competing offer in hand; right after a visible win; at fiscal-year budget planning (ask your manager when salary budgets lock — often 1–2 months before reviews); when taking on new scope. Worst: after layoffs, mid-crisis, or during your manager's worst week.

The conversation

Book 30 minutes labeled "compensation discussion" — no ambushes. The structure:

"I'd like to talk about my compensation. Over the last year I've [two strongest results]. My scope has grown to include [new responsibilities]. Market data for this role in [city] puts the range at [$X–$Y]. Based on that, I'm asking for [$specific number]. What would it take to get there?"

Then stop talking. The specific number (not a range — you'll be anchored to its bottom) and the open question do the work. If the answer is yes: get it in writing. If it's "not now": convert it into a plan — "What results, by when, get me to $X? Can we put that in writing and revisit in [date]?" A no without a path is information too.

If the base is frozen

Negotiate the rest: bonus, equity refresh, extra PTO, remote flexibility, a title change (which reprices your next negotiation), conference budget, or an off-cycle review in six months. Each has real dollar value and different budget lines.

The quiet rule

The people paid best are rarely those who work most — they're those who document impact and ask, calmly, on schedule. Make it an annual habit, not a crisis response.

Sources

• U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics
• Federal Reserve Bank of Atlanta, Wage Growth Tracker (job stayers vs switchers)
• WorldatWork / Mercer, annual Salary Budget Survey releases
• SHRM, research on employee replacement costs

Estimates for reference only, based on 2026 published rates. Not tax, legal or financial advice.