Educational only: Work and pay decision support, not tax, legal, financial or career advice.
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Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral work and pay planning using your own assumptions.
What this calculator helps you decide
Best for
Extending one annual raise across an entered growth and discount horizon.
Outputs
Initial raise, cumulative nominal value, present value and ending annual raise.
Start here
Choose a raise mode, then enter salary, growth, horizon and discount assumptions.
- Close-intent boundary
- Do not use this to compare only the immediate nominal and real raise; use Pay Raise Calculator.
Value raises and extra income
Lifetime Value of a Raise: initial raise
Initial raise, cumulative nominal value, present value and ending annual raise.
Raise and horizon assumptions
Choose how to define the raise, then enter growth, horizon and discount assumptions.
Your numbers stay in this browser
Choose a raise amount, raise rate or new annual salary.
First-year annual raise used in amount mode.
Whole years included in cumulative value.
Alternative raise modes and present valueOpen the assumptions you are less likely to change on every comparison.
Annual growth applied to the raise difference.
Annual rate used for present value.
Calculated result
Nominal cumulative value and present value are intentionally separate.
Use one currency consistently across all inputs.
PDF and CSV exports stay on this device. Clean page links contain no inputs.
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Entered scenario15,612.12Baseline
Horizon years: 618,924.363,312.24
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Cumulative nominal raise value
Cumulative nominal value
cumulativeNominalRaiseValue = ฮฃ initialAnnualRaise ร (1 + annualBaselineGrowthRate)^(year โ 1)15,612.12 currency unitsResult15,612.12 currency units
Sum of the annual raise difference over the horizon. Displayed using the engine-rounded value.
Cumulative nominal raise value formula โPresent value of raise
Present value
presentValueOfRaise = ฮฃ annualRaise(year) รท (1 + annualDiscountRate)^year13,878.91 currency unitsResult13,878.91 currency units
Each annual raise difference discounted to today. Displayed using the engine-rounded value.
Present value of raise formula โInitial annual raise
Initial annual raise
initialAnnualRaise = selected raise amount, current salary ร raise rate, or new salary โ current salary3,000.00 currency unitsResult3,000.00 currency units
First-year raise implied by the selected mode. Displayed using the engine-rounded value.
Initial annual raise formula โEnding annual raise
Ending annual raise
endingAnnualRaise = initialAnnualRaise ร (1 + annualBaselineGrowthRate)^(horizonYears โ 1)3,247.30 currency unitsResult3,247.30 currency units
Raise difference in the final horizon year. Displayed using the engine-rounded value.
Ending annual raise formula โInputs used
- Raise input mode
- 0
- Annual raise amount
- 3,000.00 currency units
- Annual baseline growth
- 0.02
- Horizon years
- 5
- Annual discount rate
- 0.04
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario values are visible in the URL, calculations run in the browser, and optional saved state stays only on this device. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| raiseType | Choose a raise amount, raise rate or new annual salary. | selected mode | 0, 1, 2 | Required | Annual raise amount |
| currentAnnualSalary | Gross annual salary before the raise. | currency units/year | 0.01 to 100000000 | Required | 60000 |
| raiseAmount | First-year annual raise used in amount mode. | currency units/year | 0 to 100000000 | Required | 3000 |
| raiseRate | Raise rate as a decimal used in rate mode. | decimal | 0 to 10 | Required | 0.05 |
| newAnnualSalary | New salary used in new-salary mode. | currency units/year | 0 to 100000000 | Required | 63000 |
| annualBaselineGrowthRate | Annual growth applied to the raise difference. | decimal/year | -0.99 to 10 | Required | 0.02 |
| horizonYears | Whole years included in cumulative value. | years | 1 to 50 | Required | 5 |
| annualDiscountRate | Annual rate used for present value. | decimal/year | -0.99 to 10 | Required | 0.04 |
Lifetime Value of a Raise: initial raise
Use cumulative nominal value and present value as different scenario measures.
Formula summary
- Primary formula
- cumulativeNominalRaiseValue = ฮฃ initialAnnualRaise ร (1 + annualBaselineGrowthRate)^(year โ 1)
Data used here
- The estimate uses your inputs and the work-value formula documented in the methodology.
Decision checks
Act on the result
Confirm the raise mode, time horizon and discount assumption.
Stress-test the decision
Retest horizon and baseline growth.
When this estimate can be misleading
- No promotion, job change, tax or probability of staying is modelled.
- This is not lifetime earnings advice.
- Future growth and discount rates are uncertain.
- Use cumulative nominal value and present value as different scenario measures.
Educational estimate, not advice. See all assumptions & limitations โ
Related reading
Use these practical guides to interpret the decision and its assumptions.
- How to use the Lifetime Value of A Raise calculator
Estimate cumulative and present raise value from user-entered salary, raise, growth, discount and horizon assumptions.
Read guide
Frequently asked questions
What is this raise worth cumulatively and in present-value terms?
Confirm the raise mode, time horizon and discount assumption.
Which official source and period does this use?
This market-neutral tool does not use an official local policy rule.
Can I share or save a scenario?
Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
How should I use the calculated result?
Treat the calculated result as one scenario, then verify the input record with the greatest effect on that result.