Salary Negotiation Calculator
Anchor Above Your Target, Not At It
A common negotiation principle is to open above your actual target number, since counter-offers typically move down from the opening ask rather than up from it. This calculator takes your desired raise percentage and a market rate benchmark, picks whichever is higher as the anchor point, and adds a further margin on top — producing a concrete opening number rather than a vague "ask for more."
The Formula
Market Gap % = ((Market Rate − Current Salary) / Current Salary) × 100
Recommended Ask = max(Target Salary, Market Rate) × 1.05
The 1.05 multiplier builds in a 5% negotiating margin above whichever anchor (your target or the market rate) is higher, leaving room to concede during back-and-forth while still landing at or above your actual target.
Worked Example
| Desired raise | Target salary | Market gap | Recommended ask |
|---|---|---|---|
| 5% | $73,500.00 | 11.43% | $81,900.00 |
| 8% | $75,600.00 | 11.43% | $81,900.00 |
| 10% | $77,000.00 | 11.43% | $81,900.00 |
| 12% | $78,400.00 | 11.43% | $82,320.00 |
Notice the recommended ask stays anchored to the market rate ($78,000 × 1.05 = $81,900) until the target salary itself exceeds the market rate — at a 12% ask, the target salary overtakes the market benchmark and becomes the anchor instead.
Where This Gets Used
- Preparing for an annual review — walking in with a specific number backed by a market benchmark rather than an open-ended request.
- Responding to a lowball counter-offer — having a defensible opening figure to fall back on if a negotiation stalls.
- Evaluating a competing offer as leverage — using an outside market rate as the benchmark input when a competing offer is in hand.
How to Use This Calculator
- Enter Current Salary.
- Enter Market Rate — a benchmark figure for the role, typically from salary survey data or a competing offer.
- Enter Desired Raise as a percentage.
- Select Calculate to see the target salary, market gap, and recommended opening ask.
Related Calculations
Check a straightforward raise calculation with the Salary Raise Calculator, or compare the result against a full offer with the Job Offer Comparison Calculator.