1. What is the Lifetime Salary Calculator?

The Lifetime Salary Calculator estimates your total earnings over a specified number of years, accounting for annual salary growth. It helps with long-term financial planning and career decision-making.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• Current Salary — Your current annual salary in GBP
• Growth — Expected annual salary growth rate (decimal)
• n — Number of years to calculate for

Explanation: The equation projects your salary forward each year with compound growth, then sums these amounts over the specified period.

3. Importance of Lifetime Salary Estimation

Details: Understanding your potential lifetime earnings helps with retirement planning, mortgage applications, career choices, and long-term financial commitments.

4. Using the Calculator

Tips: Enter your current salary in GBP, expected annual growth rate as a decimal (e.g., 0.03 for 3%), and number of years. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: What's a realistic growth rate?
A: Typically 0.01-0.05 (1-5%) for inflation-adjusted growth, though this varies by industry and career stage.

Q2: Does this account for taxes?
A: No, this shows gross lifetime earnings. For net earnings, you'd need to apply appropriate tax rates.

Q3: How accurate is this projection?
A: It's an estimate. Actual earnings may vary due to career changes, promotions, or economic conditions.

Q4: Should I include bonuses?
A: For simplicity, use base salary. For more accuracy, you could include average bonus amounts in your salary figure.

Q5: What about career breaks?
A: The calculator assumes continuous employment. For breaks, calculate separate periods and sum them.