1. What is the Salary Increase Calculator?

The Salary Increase Calculator projects your future earnings based on your current salary and expected annual raise percentage. It helps visualize how compound increases affect your salary over time.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

• Old Salary — Your current annual salary
• Rate — Expected annual percentage increase
• Periods — Number of years to project

Explanation: The formula accounts for compound growth, meaning each year's increase is applied to the previous year's salary (including previous increases).

3. Importance of Salary Projection

Details: Understanding how raises compound over time helps with financial planning, career decisions, and salary negotiations. The graph provides a visual representation of your earnings trajectory.

4. Using the Calculator

Tips:

• Enter your current salary before taxes
• Use realistic raise percentages (industry averages are 2-5%)
• Adjust the time period to see short-term vs. long-term effects
• The graph updates automatically after calculation

5. Frequently Asked Questions (FAQ)

Q1: Does this account for inflation?
A: No, the calculator shows nominal increases. For real (inflation-adjusted) values, subtract expected inflation from your raise percentage.

Q2: What if my raises vary each year?
A: This assumes a constant raise percentage. For variable raises, you'd need to calculate each year separately.

Q3: How accurate are these projections?
A: They're estimates based on your inputs. Actual salary growth depends on many factors including job performance and market conditions.

Q4: Can I calculate monthly instead of annual?
A: Yes, just enter monthly salary and adjust the rate/period accordingly (e.g., 1% monthly raise for 12 months).

Q5: Does this include bonuses or other compensation?
A: No, this calculates base salary only. For total compensation projections, include other elements separately.