How to Determine How Much of a Raise Should You Ask For

How much of a raise should you ask for has always been complicated in my mind.

I never wanted to ask for too little because what if I was short selling myself?

For 10+ years, I didn’t want to ask at all because I thought if I deserved one, the company I worked for should know and give it to me.

I was bitter for a while when I received a 3% percent increase year after year.

We worry about sounding greedy, asking for too much, or accidentally hurting our relationship with the boss.

But if your pay hasn’t kept up with your responsibilities, performance, or the current job market, asking for a raise may be one of the smartest financial moves you can make.

The hard part is figuring out how much to actually ask for.

Should you ask for 3%? 10%? More? What’s considered realistic without sounding completely out of touch?

The truth is, there isn’t one perfect number that works for everyone. The right raise depends on your role, performance, industry, location, experience level, and whether you’ve taken on additional responsibilities.

In this guide, I’m going to break down:

• what raise percentages are common
• how to calculate a realistic raise request
• when you should ask for more
• when you might be underselling yourself
• and how to avoid one of the biggest mistakes people make during salary conversations

What Is A Typical Raise Percentage?

For many employees, the average annual raise is usually somewhere around 2% to 5%.

According to Indeed, the average United States employee annual increase amount is 3.6%.

That’s the standard “cost of living” or annual performance increase many companies give during yearly reviews. In some cases, employees get these raises almost automatically as long as performance is solid.

But here’s the important thing people don’t always realize:

A standard annual raise is not the same thing as a market adjustment or promotion raise.

If your responsibilities have grown significantly, your role has changed, or your pay is far below market value, asking for only 2% to 5% could actually leave money on the table.

Especially if that replaces a yearly annual increase that was already going to be naturally given to compensate for cost of living increases.

Here’s a general idea of what different raise ranges often mean:

2% To 5%

Usually:

• annual review raises
• cost-of-living adjustments
• small merit increases

5% To 10%

Usually:

• strong performance raises
• market-rate adjustments
• additional responsibilities
• retention raises

10% To 20%+

Usually:

• promotions
• major role expansion
• significant underpayment correction
• competing job offers
• moving into leadership responsibilities

Of course, every company is different. Some organizations are much stricter with compensation budgets than others.

But one mistake people make is assuming that because their company usually gives small raises, they shouldn’t ask for more when they’ve genuinely earned it.

The Biggest Mistake People Make When Asking For A Raise

A lot of employees pick a number completely at random.

They think:

• “$5,000 sounds reasonable.”
• “Maybe 10%?”
• “I don’t want to sound greedy.”

Instead of basing the request on facts.

The strongest raise requests are usually tied to:

• market data
• measurable accomplishments
• increased responsibilities
• company impact
• retention value

In other words, your raise request should sound connected to business value… not emotions.

That doesn’t mean you need to walk into a meeting sounding robotic or aggressive. But it does mean you should be able to explain why the number makes sense.

Start With Market Research

Before asking for a raise, spend some time researching what your role actually pays in your area.

Look at:

• Glassdoor
• Salary.com
• Payscale
• LinkedIn Salary
• Indeed Salaries
• job postings in your city

Pay attention to:

• years of experience required
• certifications
• industry differences
• management responsibilities
• remote vs in-office pay
• geographic location

This step matters because many people stay underpaid simply because they never realized what the market rate actually was.

You may discover:

• you’re already near the top of the range
• you’re underpaid by 10% to 20%
• newer hires are making more
• your responsibilities now align with a higher-level role

And once you know the market range, your raise request becomes much easier to justify.

Calculate The Difference Between Your Current Pay And Market Value

Let’s say:

• you currently make $70,000
• similar jobs in your market are paying $80,000 to $85,000

That tells you your compensation may be lagging behind market value.

In that situation, asking for a 3% raise probably doesn’t make much sense.

A 3% raise would only bring you to about $72,100.

Meanwhile, the market may already support significantly higher pay.

This is why researching salaries beforehand is so important.

Sometimes employees stay loyal to one company for years while their compensation quietly falls behind inflation and market rates. I know I did.

Consider How Much Your Responsibilities Have Changed

One of the strongest reasons to ask for a larger raise is role expansion.

Ask yourself:

• Are you training new employees?
• Managing projects?
• Handling work that used to belong to multiple people?
• Acting like a lead without the title?
• Taking on higher-level responsibilities?
• Covering gaps after layoffs or turnover?

A lot of people slowly absorb more and more work over time without realizing how much their role has evolved.

Then during raise discussions, they still frame themselves based on their old position instead of the value they currently provide.

If your job today looks very different from the job you were originally hired for, that matters.

Inflation Matters More Than People Think

One frustrating reality is that small raises sometimes don’t actually increase your purchasing power much at all.

If inflation rises faster than your salary, you can technically earn “more” while effectively falling behind financially.

That’s one reason many workers started reevaluating compensation over the past few years.

Groceries, housing, insurance, childcare, and everyday expenses have increased significantly in many areas.

Now, inflation alone usually isn’t enough justification for a huge raise request. But it does help explain why many employees are reassessing whether their pay still reflects reality.

Don’t Undersell Yourself Out Of Fear

This is especially common among high-performing employees.

Ironically, some of the most capable workers hesitate the most during salary negotiations because they:

• don’t want to seem difficult
• feel guilty asking for more
• worry about damaging relationships
• assume hard work will eventually speak for itself

But in many companies, raises are not automatically tied to effort.

Visibility, timing, confidence, and communication matter too.

That doesn’t mean you should demand unrealistic compensation. But it does mean you shouldn’t automatically shrink your request before the conversation even starts.

One of the biggest salary mistakes people make is negotiating against themselves before anyone else even responds.

I wrote an article titled “How to Negotiate a Raise Without Feeling Awkward” that may help if you’re hesitating.

Annual Review Raises Vs Promotion Raises

Not all raises should be treated the same way.

Annual Review Raise

This is usually:

• smaller
• tied to yearly performance
• connected to company budgets

These are often in the 2% to 5% range.

Promotion Raise

This is different.

If your title, responsibilities, leadership expectations, or scope are increasing, the raise should typically reflect that larger change.

Promotion raises are often much larger because the actual role itself is changing.

A common mistake is accepting a promotion with only a tiny salary increase even though the workload and expectations rise dramatically.

How To Decide On Your Raise Number

Instead of choosing a random percentage, try this approach:

Step 1: Research Market Pay

Find realistic salary ranges for your role and experience.

Step 2: Evaluate Your Contributions

Make a list of:

• measurable results
• revenue impact
• projects completed
• efficiency improvements
• leadership responsibilities
• positive feedback
• client wins
• additional duties

Step 3: Compare Your Current Salary

Look at how far your pay is from:

• market value
• peers
• newer hires
• expanded responsibilities

Step 4: Pick A Strategic Number

Many people choose a number slightly above their minimum acceptable outcome to allow room for negotiation.

For example:

• If you’d realistically be happy with 8%, you might ask for 10%.
• If you want to move from $70,000 to $80,000, you may ask for $82,000 to $85,000 depending on the market.

The key is staying realistic while still advocating for yourself.

Timing Matters More Than Most People Realize

Even a strong raise request can struggle if the timing is terrible.

Good times to ask for a raise may include:

• after a major accomplishment
• during annual reviews
• after strong performance feedback
• after taking on new responsibilities
• recent positive client results
• when budgets are being planned
• after completing a difficult project

Harder times might include:

• layoffs
• hiring freezes
• major company financial struggles
• immediately after mistakes or performance issues

That doesn’t mean you can never ask during difficult periods. But understanding company context helps.

What If Your Boss Says No?

A “no” does not always mean:

• you’re not valuable
• you’re bad at your job
• you asked for too much

Sometimes it genuinely comes down to:

• budgets
• company policies
• timing
• compensation structures
• leadership approvals

If the answer is no, try asking:

• what goals would support a future raise?
• when compensation could be revisited
• whether additional responsibilities could lead to promotion opportunities
• if non-salary benefits are negotiable

You can also use the conversation as information gathering.

If you repeatedly receive vague answers while continuing to take on more work without compensation growth, that may tell you something important too.

Signs You May Be Asking For Too Little

You may be undervaluing yourself if:

• your responsibilities have doubled
• you’re doing higher-level work already
• you haven’t had a meaningful raise in years
• recruiters consistently quote much higher salaries
• your company struggles to retain employees
• new hires appear to earn similar or higher pay
• your role has become more specialized
• you’re consistently exceeding expectations

A lot of employees stay loyal and hardworking while their compensation quietly stagnates. (And when I say “a lot of employees” – I mean me.)

Sometimes the hardest part is simply realizing your current pay may no longer reflect your value.

Should You Mention A Competing Job Offer?

This depends heavily on your situation and company culture.

A competing offer can absolutely strengthen your negotiating position. But it can also create tension if handled poorly.

If you choose to mention another offer:

• stay professional
• avoid sounding threatening
• focus on market value and career goals
• be prepared for any outcome

One important thing to remember:

You should never bluff about another offer.

And if you use an outside offer as leverage, you should be mentally prepared for the possibility that your employer may not match it.

Confidence Matters — Even If You’re Nervous

Most people feel nervous asking for a raise.

That’s normal.

The goal isn’t to become perfectly fearless. The goal is to prepare well enough that you can communicate your value clearly and professionally even if you’re uncomfortable.

A few things that help:

• practicing beforehand
• writing down accomplishments
• rehearsing your talking points
• focusing on facts instead of emotions
• remembering that salary discussions are a normal part of working life

You are not “causing problems” simply by discussing compensation professionally.

What If You’re Severely Underpaid?

Sometimes employees discover they are dramatically below market value.

In those situations, small incremental raises may not realistically solve the issue.

You may need to:

• pursue a larger adjustment
• request a promotion
• explore outside opportunities
• compare benefits and total compensation
• evaluate long-term growth potential

This can be difficult emotionally, especially if you genuinely like your company or coworkers.

But loyalty should not require permanently underpaying yourself.

Final Thoughts

So how much of a raise should you ask for?

The answer depends on:

• your market value
• your contributions
• your responsibilities
• your company
• and how far behind your compensation may be

For some people, a 3% raise makes perfect sense.

For others, asking for only 3% could mean dramatically underselling themselves.

The most important thing is approaching the conversation strategically instead of emotionally.

Research the market. Understand your value. Prepare examples of your contributions. Pick a realistic number backed by facts.

Once you receive the raise, make sure you say thank you – appreciation goes further than you realize.