1. What is the Salary Increase Calculator?

The Salary Increase Calculator projects how a salary will grow over time with regular percentage increases. It helps employees and employers understand future compensation based on annual or periodic raises.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

• Old Salary — Current salary amount
• Rate — Percentage increase per period
• Periods — Number of times the increase is applied

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

3. Importance of Salary Projections

Details: Understanding future salary potential helps with financial planning, career decisions, and compensation negotiations.

4. Using the Calculator

Tips: Enter current salary, expected raise percentage, and number of periods (usually years). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between simple and compound raises?
A: Simple raises apply to the original salary each time, while compound raises build on each other (each raise applies to the new increased salary).

Q2: How accurate are these projections?
A: Projections assume consistent raise percentages over time. Actual raises may vary due to performance, company policy, or economic conditions.

Q3: Can I calculate monthly salary increases?
A: Yes, just enter the monthly raise percentage and number of months as periods.

Q4: What if my raises vary each year?
A: For varying raises, you'd need to calculate each period separately. This calculator assumes consistent percentage increases.

Q5: How does inflation affect these calculations?
A: These are nominal increases. For real (inflation-adjusted) salary growth, you'd need to subtract inflation from the raise percentage.