1. What is the Salary Growth Calculation?

The salary growth calculation projects your future salary based on your current salary and expected annual raises. It shows how compound growth affects your earnings over a 10-year period.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

• \( Current \) — Your current annual salary in USD
• \( Raise \) — Expected annual raise as a decimal (e.g., 0.05 for 5%)
• \( 10 \) — Number of years for projection

Explanation: The formula accounts for compound growth, where each year's raise is applied to the previous year's salary (including previous raises).

3. Importance of Salary Projection

Details: Understanding your potential salary growth helps with financial planning, career decisions, and long-term budgeting.

4. Using the Calculator

Tips: Enter your current salary in USD and expected annual raise as a decimal. For accurate results, use realistic raise expectations based on your industry and career path.

5. Frequently Asked Questions (FAQ)

Q1: Should I include bonuses in current salary?
A: This calculator works best with base salary. For bonuses or variable pay, consider averaging several years.

Q2: What's a typical annual raise?
A: Raises vary by industry and performance. 2-5% is common for cost-of-living adjustments, while promotions may bring larger increases.

Q3: Does this account for inflation?
A: No, this shows nominal growth. For real (inflation-adjusted) growth, subtract expected inflation from your raise percentage.

Q4: What if my raises vary year to year?
A: This assumes consistent raises. For variable raises, the result represents an average annual growth rate.

Q5: Can I calculate for different time periods?
A: For different years, replace the exponent 10 with your desired number of years in the formula.