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The average person who negotiates their salary earns $5,000 to $10,000 more per year. Over a career, that compounds into hundreds of thousands. Here are the exact scripts and strategies to ask for more.
A study by Salary.com found that only 37% of workers always negotiate their salary. The remaining 63% accept the first offer. On average, those who negotiate earn $5,000 to $7,500 more per year in their first negotiation alone.
That might not sound life-changing, but compound it: $5,000 more per year, invested in your 401(k) or Roth IRA at 7% annual returns for 30 years, grows to roughly $472,000. Every raise after that starts from a higher base, so the lifetime impact is well over $500,000.
One uncomfortable conversation. Half a million dollars over your career. This is the single highest ROI activity in personal finance, and most people skip it because they do not know how to do it.
Why most people do not negotiate (and why those reasons are wrong)
“I am just grateful to have the job.” Gratitude is fine. Underpaying yourself is not. Companies set salary ranges knowing candidates will negotiate. The initial offer is almost never the maximum they are willing to pay. By not negotiating, you are leaving money the company already budgeted for you.
“They might rescind the offer.” In nearly two decades of HR data, offer rescissions due to salary negotiation are essentially unheard of. According to Harvard Business Review, employers expect negotiation and view it as a sign of confidence and preparation.
“I do not know what to say.” This guide gives you exact scripts. The awkwardness lasts 5 minutes. The raise lasts forever.
“I am not in a position to negotiate.” If you have a job offer or a performance review coming up, you are in a position to negotiate. Even if the company says “this is a non-negotiable offer,” it is almost always negotiable.
When to negotiate
At a new job offer
This is the highest-leverage moment. You have something the company wants (your skills), and they have already invested time and money in recruiting you. The offer stage is when companies are most flexible, not just on salary but on bonus, equity, PTO, remote work, start date, and title.
Timing: Negotiate after you receive the written offer but before you accept it. Ask for 2 to 3 business days to review the offer. Use that time to research, prepare your counter, and practice.
At your annual review
Most companies have a formal review cycle (annual or biannual) where raises are discussed. This is a natural negotiation moment. Start preparing 2 to 3 months before your review by documenting your accomplishments.
After a major achievement
Did you land a big client, ship a major project, save the company money, or take on significant new responsibilities? These are off-cycle moments where a raise request is justified. Do not wait for the annual review if the achievement is fresh.
When you receive a competing offer
An offer from another company gives you leverage. But use this carefully. Telling your employer “I have another offer” can backfire if they feel you are threatening to leave. Frame it as “I want to stay, and here is what would make that possible.”
How to research your market value
You cannot negotiate effectively without knowing what you are worth. Use these resources:
Glassdoor Salaries: Search by job title, company, and location. Shows salary ranges, bonuses, and total compensation.
Levels.fyi: Best for tech industry. Shows base salary, stock, and bonus breakdowns by company and level.
Payscale: Generates a free salary report based on your title, experience, education, and location.
Bureau of Labor Statistics: Government data on median pay by occupation and metro area. Less granular but unbiased.
LinkedIn Salary: Shows salary ranges for your connections and similar professionals.
Talking to peers. The taboo against discussing salaries benefits employers, not employees. If you can have honest conversations with colleagues or friends in similar roles, their numbers are the most relevant data point.
Compile a range. After research, you should have a target range: “The market rate for my role, experience, and location is $75,000 to $90,000.” Your target number should be in the upper portion of that range.
Negotiating a new job offer: step by step
Step 1: Receive the offer, express enthusiasm, ask for time
When you receive the offer (phone or email), respond positively but do not accept immediately.
Script: “Thank you so much. I am really excited about this role and the team. I would love to take a couple of days to review the full offer details. Can you send me the offer in writing?”
This is completely normal. No reasonable employer expects an instant yes.
Step 2: Evaluate the full compensation package
Salary is just one component. Also evaluate:
- Sign-on bonus
- Annual bonus / performance bonus
- Stock options or RSUs (restricted stock units)
- 401(k) match percentage and vesting schedule
- Health insurance (premiums, deductibles, HSA availability)
- PTO days
- Remote/hybrid flexibility
- Professional development budget
- Relocation assistance
Sometimes the salary is firm but the sign-on bonus, equity, or PTO is negotiable.
Step 3: Make your counter-offer
Name a specific number, not a range. If you say “$80,000 to $85,000,” they hear $80,000. Ask for $87,000 (slightly above your target of $85,000) so that meeting in the middle still lands where you want.
Email script for counter-offer:
“Hi [Hiring Manager],
Thank you again for the offer. I am very excited about joining [Company] and contributing to [specific project or goal].
After reviewing the offer and researching market compensation for this role in [City], I would like to discuss the base salary. Based on my [X years of experience / specific relevant skill / relevant achievement], and considering the market range for this position, I was hoping for a base salary of $87,000. I believe this reflects the value I will bring to the team.
I am very flexible on the other terms and truly looking forward to making this work. Would you be open to discussing this?”
Step 4: Handle the response
If they accept: Great. Get the revised offer in writing.
If they counter lower: “I appreciate you working with me on this. Could we meet in the middle at $85,000?” If they say yes, done. If they say the salary is firm, negotiate another component: “I understand the salary is at the top of the band. Would it be possible to add a $5,000 sign-on bonus?” or “Could we revisit salary after 6 months with a performance review?”
If they say no to everything: You have a decision: accept the original offer or walk away. If the role and company are great and the original offer is within market range, accepting is fine. You can always negotiate at your first annual review.
Negotiating a raise at your current job: step by step
3 months before your review: document everything
Keep a running list of your accomplishments:
- Revenue generated or costs saved (with specific numbers)
- Projects completed successfully
- Positive feedback from managers, clients, or peers
- New responsibilities you have taken on
- Skills you have developed
Quantify wherever possible. “I managed the Q3 campaign” is weak. “I managed the Q3 campaign that generated $340,000 in pipeline revenue, 22% above target” is strong.
1 month before: research market rates
Use the same resources listed above. Know the market range for your role, experience, and location. If you are being paid below market, that is your strongest argument.
At the review: the conversation
Script: “I have really enjoyed this past year and I am proud of what I have accomplished, particularly [2-3 specific achievements with numbers]. Given my contributions and the current market rate for this role, I would like to discuss adjusting my compensation to $XX,000.”
Then stop talking. Let them respond. Silence after your ask is powerful. Do not fill it with justifications or backpedaling.
If they say the budget is tight: “I understand. Could we set a timeline for when we can revisit this? I would also like to discuss what specific goals I should hit by [date] to justify the adjustment.”
If they offer less than you asked: “I appreciate the raise. Is there flexibility on [bonus / title / additional PTO / professional development budget]?”
If they say no: “Can you help me understand what I would need to demonstrate to reach that level by [next review cycle]?” Get specific targets in writing so you have a clear path and can hold the company accountable.
Negotiation tactics that work
Anchor high. The first number sets the frame. If you ask for $90,000 and they counter with $85,000, you get $85,000. If you ask for $80,000 and they accept immediately, you left $5,000 to $10,000 on the table. Always ask for slightly more than your target.
Use specific numbers. Asking for $87,500 instead of $90,000 signals that you have done research and have a specific basis for your number. Round numbers feel arbitrary. Specific numbers feel calculated.
Focus on value, not need. “I need more money because my rent increased” is a weak argument. “My contributions generated $200K in revenue, and the market rate for this output is $90K” is strong. Negotiation is about your value to the company, not your personal expenses.
Get it in writing. Verbal agreements mean nothing. Always ask for the revised offer, raise, or promotion in writing (email is fine) before accepting.
Practice with a friend. Rehearse the conversation out loud. The words feel less awkward the second and third time. Have a friend play the hiring manager and throw curveballs (“that is above our budget,” “we do not usually negotiate for this level”).
What to negotiate besides salary
If salary is truly fixed, these items are often flexible:
- Sign-on bonus: One-time cash payment. Companies can often approve a bonus more easily than a recurring salary increase.
- Annual bonus target: Even a 5% higher bonus target compounds over years.
- Equity/RSUs: In tech, equity can be a significant portion of total compensation.
- Review timeline: “Can we schedule a 6-month review with the possibility of a salary adjustment?” gets you a second bite sooner.
- PTO: An extra week of PTO is worth roughly 2% of your salary.
- Remote work flexibility: Working from home 2 to 3 days a week saves on commuting, food, and wardrobe. The financial value is $3,000 to $8,000/year depending on your commute.
- Professional development: Conference attendance, certification reimbursement, tuition assistance.
- Title: A better title costs the company nothing but positions you for higher compensation at your next job.
How to invest your raise
The worst thing to do with a raise is increase your spending by the same amount. This is lifestyle inflation, and it is the reason many people earning $100,000+ still live paycheck to paycheck.
The “save your raise” rule: Direct at least 50% of every raise to savings and investments before adjusting your lifestyle.
If you get a $5,000 raise ($417/month gross, roughly $300/month after taxes):
In 10 years, that $150/month invested at 7% is worth roughly $26,000. Over your career with multiple raises, the “save your raise” strategy is worth hundreds of thousands. More on this in our savings rate guide.
Frequently asked questions
Can I negotiate an entry-level salary? Yes. Even entry-level roles have salary ranges. The initial offer is typically near the bottom of the range. Asking for 10 to 15% more is reasonable, especially if you have relevant internships, skills, or competing offers.
What if the job posting lists a salary range? Target the upper half of the posted range. The range exists because the company expects to pay different amounts based on experience and negotiation. They posted $60K to $75K? Your target should be $70K to $75K.
How often should I ask for a raise? Annually is standard. More frequently if you have taken on significant new responsibilities, received a promotion without a corresponding pay increase, or if market rates have shifted significantly.
What if I am underpaid by $15,000+ compared to market? If the gap is that large, a single negotiation may not close it. Ask for a significant adjustment (frame it as a “market alignment”) and simultaneously explore external offers. Sometimes the only way to close a large pay gap is to change jobs. Research from ADP shows that job changers earn 8 to 12% more on average than those who stay.
Will I be seen as greedy or difficult? No. According to PayScale research, 75% of people who asked for a raise received at least some increase. Managers expect the conversation. A professional, well-researched salary discussion demonstrates confidence and self-awareness, qualities employers value.
Should I negotiate if I love the job and company? Especially then. If you plan to stay for years, every dollar of base salary compounds (raises are percentages of base, bonuses are percentages of base). Not negotiating costs you more the longer you stay.
The bottom line
Salary negotiation is the highest-return financial skill you will ever learn. One 15-minute conversation can add $5,000 to $15,000 to your annual income. Compounded over a career with raises, bonuses, and investment returns, that single conversation is worth $500,000+.
Research your market value. Practice the script. Make the ask. The company will not fire you for negotiating. They will not rescind the offer. The worst case is they say no, and you are exactly where you would have been if you had not asked. The best case is thousands of dollars more, every year, for the rest of your career.
You owe it to your future self to ask.
Invest your raise and build wealth