Is my raise actually good? The 3-number test every employee should run

You got a raise. You're vaguely happy. But was it a good raise, a mediocre raise, or a raise that actually made you poorer? Most people never run the math. Here's how to do it in under a minute.

Number 1: Your inflation-adjusted "real" raise

The headline percentage on your offer letter is not your real raise. You need to subtract inflation.

Formula: real_raise = raise_percent - inflation_rate

Current US CPI is running around 3.0% year-over-year in 2026. So:

• A 3% raise = 0.0% real raise (you're treading water)
• A 4% raise = 1.0% real raise (barely a real raise)
• A 5% raise = 2.0% real raise (decent)
• A 6% raise = 3.0% real raise (good)
• A 7%+ raise = genuinely a good raise

If your "real raise" is 0% or negative, you did not get a raise. You got a slightly better-looking flat paycheck.

Number 2: The market-comparison test

Are you getting paid what the market is paying for your role? This is the most common blind spot — you can get a 5% raise from your current company and still be $15,000 below market.

Check two data points:

1. Your role on Levels.fyi, Glassdoor, Payscale, or BuiltIn — filter for your city and years of experience. Take the median (50th percentile) of total comp, not base.
2. At least one real job posting for your role at a competitor company. These often list salary bands now. Use the top of the band, not the bottom.

If the market median is more than 10% above your new salary, you're underpaid and should consider negotiating or switching.

Number 3: The peer delta

The most uncomfortable question, and the most revealing: what are your peers at the same level getting?

If you have a good relationship with any coworker, ask. If you don't, check your company on Blind or Levels.fyi for anonymous salary data. If the median person at your level is making more than you, that's a gap you can explicitly point to in your counter-offer.

Running the 3-number test on a real example

Scenario: You make $95,000. You're offered a 3.5% raise → $98,325.

• Real raise: 3.5% - 3.0% inflation = 0.5%. You got a $475 real raise on a $95,000 salary.
• Market check: Levels.fyi says your role at your experience level in your city pays $108,000-$120,000 median. You're $10k-$22k under.
• Peer delta: A coworker hired 6 months ago at the same level is making $105,000.

Verdict: This is a bad raise. Not because 3.5% is low — it's average — but because you were already underpaid, and this raise didn't close the gap.

Sample talking points to adapt

When you have the three numbers above, you have research to reference. Here's an example framework — adapt in your own voice, and remember outcomes depend on your employer, performance, and many factors:

Express appreciation, then reference your research: "The market for my role at my experience level appears to run $X–$Y in this city. My raise keeps me below that range. Can we discuss what it would take to close the gap — whether through base, equity, or a mid-year review with clear targets?"

This is a starting point, not a script to recite. Rewrite it in your own words. For decisions with legal implications, talk to an employment attorney.

Or run the comparison in 30 seconds

SalaryCheck compares your numbers against typical market ranges automatically. You enter your salary, raise, industry, location, and experience. You get: an inflation-adjusted view, the typical range for your role, a verdict, and draft talking points to adapt in your own voice. $9.99, no account, no subscription. Informational only.