How to Calculate Annual Rate of Growth of Salary Increase

by Mike Keenan ; Updated April 19, 2017
A salary increase brings a smile to your face.

When you get a long-awaited raise, your first emotion might be excitement. However, if it's been a while, the percentage annual growth of your salary might make you feel like you deserved a bigger raise. If you know the annual rate of your salary increase, you can make a stronger argument for getting a bigger raise. To figure the average annual raise, you need to know your old salary, your new salary and the time it took to get your raise.

Step 1

Divide your increased salary by your previous salary. For example, if your salary used to be $41,000 and it increased to $46,000, divide $46,000 by $41,000 to get 1.12195122.

Step 2

Divide 1 by the number of years it took to earn the salary increase. For example, if you earned the salary increase after four years, divide 1 by 4 to get 0.25.

Step 3

Calculate the Step 1 result raised to the power of the Step 2 result. Using a calculator, enter the Step 1 result, push the exponent key, enter the Step 2 result and push enter. In this example, raise 1.12195122 to the 0.25th power to get 1.029185109.

Step 4

Subtract 1 from the result to find the annual rate of growth of your salary increase. In this example, subtract 1 from 1.029185109 to get 0.029185109. This means the salary increased by 2.92 percent per year.

Video of the Day

Brought to you by

References

About the Author

Mark Kennan is a writer based in the Kansas City area, specializing in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."

Photo Credits

  • Hemera Technologies/AbleStock.com/Getty Images
Cite this Article | raiffeisen-cards.ru A tool to create a citation to reference this article Cite this Article

Related pages


irs qualifying eventfind out how much child support i oweroth 401k tax deductiondoes mcdonalds accept credit cardsbenefits of joining the us navygrant plumbing supply njeffective age appraisaluti mutual fund indiahow much does selling plasma paycan you pay cra with credit card14k gold grillnet worth is equal to stockholders equityretroactive child support georgiawhat happens if you cheat on your taxeswhat percentage of phone bill is tax deductiblecapital one repossessionflorida rn license endorsementoklahoma foreclosure lawstax bracket for bonuseswhat is trf in bankingwww couponbug comhud form 1111walmart apply for credit cardcv2 code visasarsep ruleshow to get out of a westgate timeshare mortgagewhat does 14k 585 mean on jewelryhow to trade stocks on etradedoes kaiser accept medicaidus bank flexperks rewards centerregions prepaid visa cardwhat is the difference between condo and townhousefree medical alert bracelets for kidskathy adams furniturecouponing tutorialform 6765insurance payment for totalled carlouisiana used car lemon lawhow to calculate accrued interest on a note payablemarried filing jointly vs head of householdae8 flood zonecalculate aggregate incomehow much should contribute to 401kfltreasurehunt scammassachusetts tax return calculatorfidelity express money orders401k withdrawal withholdingiehp dental coveragetax credits on dividendsold navy credit card payment mailing addresstransfer gift card balance to paypalgrants for dyslexiawhat does tlc mean for homeswriting a letter of intent for graduate schoolcomed late paymentcar repossession in ncwhat is a 1099r formstatute of limitations maryland debtamt capital loss carryoverhud home financinghow to calculate oasdiradioshack w2futures contract vs forward contractwww jcpenney com paymentira withdrawal tax ratek-1 form 1065mezzanine debtwhat is a tradeline on a credit reportach hold pgande web onlinehow to calculate straight line amortizationbankruptcy letter of explanation templateeye glass donationtaxes on lottery winningsrent elliptical machinedo i need 1098 t to file taxes