Calculate Annual Salary Growth
Summary Results
Year-by-Year Breakdown
How Annual Raises Compound
Compound Growth Formula:
Final Salary = Starting Salary × (1 + Annual Raise %)^Number of Years
Example:
Starting salary: $50,000
Annual raise: 4%
After 5 years: $50,000 × (1.04)^5 = $60,833
Total increase: $10,833 (21.67%)
Starting salary: $50,000
Annual raise: 4%
After 5 years: $50,000 × (1.04)^5 = $60,833
Total increase: $10,833 (21.67%)
Why Compound Growth Matters
Each year's raise is calculated on the previous year's salary, not the original amount. This means your raises get larger in dollar terms each year, even if the percentage stays the same.
Year 1: $50,000 + 4% = $52,000 (raise: $2,000)
Year 2: $52,000 + 4% = $54,080 (raise: $2,080)
Year 3: $54,080 + 4% = $56,243 (raise: $2,163)
And so on...
Year 2: $52,000 + 4% = $54,080 (raise: $2,080)
Year 3: $54,080 + 4% = $56,243 (raise: $2,163)
And so on...
Planning Your Career Growth
Typical Annual Raise Ranges
Cost of Living: 2-3% annually
Performance-Based: 3-6% annually
Promotion: 10-20% in promotion year
High Performers: 5-8% annually
Maximizing Your Annual Growth
• Document your achievements throughout the year
• Seek additional responsibilities and skills
• Research market rates for your position
• Negotiate during performance reviews
• Consider job changes for larger increases