1. What is this SIP Calculator?

This calculator projects the future value of your earnings at $60/hour with a 10% annual increase, compounded yearly. It helps visualize how your income potential grows over time with consistent raises.

2. How Does the Calculator Work?

The calculator uses the future value formula:

Where:

• \( 60 \) — Hourly rate in dollars
• \( Hours \) — Weekly working hours
• \( 52 \) — Weeks in a year
• \( 10\% \) — Annual increase rate
• \( n \) — Number of years

Explanation: The formula calculates your current annual earnings and projects what they would grow to with consistent 10% annual increases.

3. Understanding the Results

Details: The future value shows what your current annual earnings would be worth after the specified number of years with 10% annual growth. This helps in financial planning and goal setting.

4. Using the Calculator

Tips: Enter your typical weekly working hours (0-168) and the number of years (1-100) you want to project. The calculator assumes consistent 10% annual increases.

5. Frequently Asked Questions (FAQ)

Q1: Is 10% annual increase realistic?
A: This depends on your industry and career path. Some fields see higher wage growth, others less. Adjust the percentage in the formula if needed.

Q2: Does this account for taxes or expenses?
A: No, this is a simple projection of gross earnings. For net income, you would need to factor in taxes and living expenses.

Q3: Can I change the hourly rate?
A: The current calculator uses $60/hour. For different rates, you would need to modify the formula directly.

Q4: What if my hours vary each week?
A: Use your average weekly hours for a reasonable estimate. For precise calculations with variable hours, more complex modeling is needed.

Q5: How does compounding work in this calculation?
A: Each year's 10% increase is applied to the previous year's total, leading to exponential growth over time.