Home
Back
Future Pay Formula:
| From: | To: |
The Pay Raise Calculator Over Years helps estimate future earnings by calculating compound annual salary increases. It projects how current pay will grow over multiple years with consistent annual raises.
The calculator uses the compound growth formula:
Where:
Explanation: The formula calculates compound growth, where each year's raise is applied to the previous year's increased pay, creating exponential growth over time.
Details: Understanding future earning potential helps with financial planning, career decisions, retirement planning, and negotiating salary increases.
Tips: Enter current pay in your local currency, raise rate as decimal (divide percentage by 100), and number of years. All values must be valid (pay > 0, raise rate ≥ 0, years 1-50).
Q1: What's the difference between simple and compound raises?
A: Simple raises add a fixed amount each year, while compound raises apply the percentage to the new increased salary each year, resulting in higher growth.
Q2: How accurate are these projections?
A: Projections assume consistent annual raises. Actual results may vary due to economic conditions, job changes, or irregular raise patterns.
Q3: Should I include bonuses in current pay?
A: For consistent projections, use base salary. If bonuses are regular, you might average them into your annual compensation.
Q4: What's a typical annual raise rate?
A: Typical raises range from 2-5% annually for cost-of-living adjustments, with higher percentages for promotions or exceptional performance.
Q5: Can this calculator account for multiple raise rates?
A: This calculator uses a single consistent rate. For variable rates, you would need to calculate each year separately.