Salary Increase Calculator

What is a 3% raise on a $50,000 salary?

Result: $1,500 increase (New Salary: $51,500)

How much is a 5% salary increase on $60,000?

Result: $3,000 increase (New Salary: $63,000)

Hourly Wage: $20.00 to $22.50

Result: 12.5% hourly wage increase percentage

Promotion: $80,000 to $100,000

Result: 25% salary increase after promotion

Inflation Adjustment: $45,000 to $47,000

Result: 4.44% raise (beats 3% inflation)

Job Change: $65,000 to $78,000

Result: 20% raise

Small Bump: $100,000 to $103,000

Result: 3% raise

Pay Cut: $90,000 to $85,000

Result: 5.56% decrease

Minimum Wage: $15.00 to $16.50

Result: 10% raise

Executive: $250k to $300k

Result: 20% raise

Part-time: $12.50 to $13.25

Result: 6% raise

Freelance: $50/hr to $65/hr

Result: 30% increase

Intern Stipend: $2000 to $2500

Result: 25% increase

Daily Rate: $400 to $450

Result: 12.5% increase

Tech Salary: $120k to $150k

Result: 25% raise

What does the upward curve of the salary projection indicate?

The upward trajectory of the blue line represents compound interest working on your salary. Unlike a flat line which would indicate stagnant pay, the curve shows that maintaining this specific growth rate results in exponential rather than linear income expansion over time.

Why does the gap between salary values widen in later years?

The widening gap between year markers illustrates the accelerating effect of percentage-based raises. As your base salary grows, the same percentage increase is calculated on a larger principal amount, resulting in larger absolute dollar gains each subsequent year.

How does this 5-year projection compare to standard inflation?

If the slope of the projected growth line is steeper than the average historical inflation rate (typically 2-3%), your purchasing power is increasing. A curve that sits below the inflation threshold would indicate that your real income is effectively shrinking despite the nominal increase.

What would happen if the raise percentage was lower?

A lower Raise Percentage would flatten the slope of the growth curve noticeably. The final Year 5 value would be significantly lower because the compounding effect is highly sensitive to the rate changes; even a 1% difference accumulates into a major divergence over time.

Does the chart assume a one-time raise or recurring increases?

The chart explicitly projects the "potential value" assuming this specific growth rate continues annually. It models a scenario where you receive the same percentage increase every single year, rather than a one-time adjustment.

How does the starting point of the chart relate to your inputs?

The first data point labeled "Now" corresponds exactly to your "New Salary" input. This serves as the geometric baseline for all future projections, meaning any error in the initial entry will mathematically skew the entire 5-year forecast.

What represents the total value of the salary growth over 5 years?

The final data point at Year 5 indicates your potential future annual salary, not the sum of all years. To understand the total cumulative earnings, one would need to sum the area under the curve or add each individual yearly value displayed on the data points.

Why is the growth curve smooth rather than stepped?

The smooth line represents a simplified continuous growth model for visualization purposes. In reality, salary increases are typically discrete events (step-functions) happening once a year, but the curve helps visualize the overall momentum and direction of your earning power.

How would a one-time bonus appear differently on this chart?

A one-time bonus would shift the entire curve upward vertically for a single year but would not change the slope of the line. The current growth projection assumes a base salary adjustment which permanently alters the trajectory of all future earnings.

What is the mathematical reason for the curve's specific shape?

The shape is determined by the exponential growth formula P(1 + r)^t. Because the time variable (t) is an exponent, the salary (P) increases by a multiplying factor rather than a structured addition, creating the characteristic "hockey stick" curve.

How does starting with a higher base salary affect the chart?

A higher "Current Salary" input shifts the entire curve higher on the Y-axis but does not change the steepness of the percentage curve itself. However, the absolute dollar difference between Year 1 and Year 5 would be larger due to the larger principal amount being compounded.

What if future raises are inconsistent?

This chart shows a "best-case consistent scenario" where the growth rate implies stability. If future raises fluctuate, the actual real-world line would be jagged and irregular, likely falling below this idealized exponential projection.

How does the visual slope correlate with wealth accumulation?

A steeper positive slope correlates directly with accelerated wealth accumulation. The sharper the angle of ascent, the significantly shorter the timeframe required to double your income compared to a shallower, more linear progression.

What does a flat line on this chart signify?

A flat horizontal line would indicate a 0% growth rate, meaning your nominal salary remains exactly the same for 5 years. In real economic terms, due to inflation, a flat visual line actually represents a declining curve in purchasing power.

How accurately does the Year 5 value predict actual earnings?

The Year 5 figure is a mathematical projection, not a prediction. It strictly calculates the result of the explicit mathematical logic (Current × (1 + Rate)^5) and does not account for external economic factors, career interruptions, or variable performance bonuses.

How do I calculate a salary increase?

To calculate salary increase, subtract your old salary from your new salary. Next, divide that difference by your old salary. Finally, multiply by 100 to get the percentage. The salary increase formula is: ((New - Old) / Old) * 100.

Is a 4% salary increase good?

A 4% salary increase is generally considered a standard cost-of-living adjustment (COLA). It typically matches or slightly exceeds average historical inflation rates. However, for a merit increase or promotion, a good raise is often 10% or higher.

Does this calculator work for hourly wages?

Yes, this tool functions as an hourly wage increase calculator. Simply enter your old hourly rate (e.g., $20) and your new hourly rate (e.g., $22) to see your hourly wage increase percentage. The math is identical to annual salary calculations.