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Future Salary Calculator

Created by Wei Bin Loo
Reviewed by Tibor Pál, PhD candidate and Adena Benn
Last updated: Jan 18, 2024


With this future salary calculator, we aim to help you estimate the amount of salary you might get in the future. Please also check out our salary calculator to understand more.

We have written this article to help you understand what future salary is and how to calculate the expected future salary. We will also demonstrate some examples to help you understand the calculations.

What is future salary?

In today's rapidly changing job market, it is becoming increasingly important for individuals to plan their financial futures. One way to do this is to calculate future salary. Future salary is the estimated amount of money an individual can expect to earn in the future, based on their current salary and projected salary increases.

While calculating future salary can be helpful for financial planning, it is important to remember that these estimates are just that — estimates. Many factors can impact an individual's earning potential, and it is impossible to predict the future with complete accuracy. However, by considering the factors discussed above and regularly reassessing your financial situation, you can make informed decisions about your career and financial future.

How to calculate my future salary?

To understand the future salary calculation, or calculate your salary increase, let's look at Carrie as an example:

  • Current salary: $50,000;
  • Average salary change per year: 5%; and
  • Number of years being estimated: 10 years.

You can calculate your salary increase or your future salary in four steps:

  1. Determine your current salary:

    The first step is to calculate your current salary. This is the annual salary that you are currently getting paid.

    Carrie's current salary is $50,000.

  2. Compute the average salary change per year:

    Next, you need to compute your average salary change per year. This is totally based on your assumptions.

    Factors affecting this includes previous salary increases, job performance, promotion, inflation, etc. Check out our salary inflation calculator for more information.

    Carrie calculated her average yearly salary increase to be 5%. You can use the percentage increase calculator to help you with this calculation.

  3. Determine the number of years you want to estimate:

    Now you can choose the `number of years you want to estimate.

    In our example, Carrie would like to know her future salary in 10 years.

  4. Calculate the future salary:

    The last step is to calculate the future salary using the formula below:

    future salary = current salary × (1 + average salary change) ^ number of years.

    Carrie's future salary will be:

    $50,000 × (1 + 5%)^10 = $81,444.73

Our future salary calculator also helps you calculate your real future salary, which considers the future inflation rate.

You can calculate the real future salary using this formula:

real future salary = future salary x (1 - average inflation rate) ^ number of years.

Assuming an average inflation rate of 3%, Carrie's real future salary is:

$81,444.73 x (1 - 3%)^10 = $60,059.31

FAQ

Why is it important to calculate future salary?

Calculating future salary is vital for financial planning, as it can help individuals make informed decisions about their career and financial future. By estimating their potential earnings, individuals can create a plan for saving, investing, and achieving their financial goals.

What is my future salary if my current salary is $70,000?

Assuming your current salary will increase by 5% per year for 10 years, your future salary will be $114,022.62. You can calculate by using the future salary formula:

future salary = current salary × (1 + average salary change) ^ number of years.

How can I calculate my future salary?

You can calculate your future salary in four steps:

  1. Determine your current salary.

  2. Compute the average salary change per year.

  3. Determine the number of years you want to estimate.

  4. Apply the future salary formula:

    future salary = current salary × (1 + average salary change) ^ number of years.

What factors are important to consider when calculating future salary?

Important factors to consider when calculating future salary include job performance, industry trends, cost of living adjustments, inflation rates, and projected salary increases.

Wei Bin Loo
Future salary
Current salary
$
Average salary change per year
%
Number of years
yrs
Expected future salary
$
Real future salary
Average inflation
%
Real future salary
$
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