Free Salary Growth Projection calculator with clear step-by-step results.
Compounds annual raises year by year and applies a promotion uplift on the schedule you set, because promotions are step changes rather than a smooth rate. Deflating the final figure back to today's money is what shows how much of the growth is real rather than nominal.
Annual progression
Salary = previous salary x (1 + annual raise), with a promotion uplift applied in promotion years
Real value
Real salary = nominal salary / (1 + inflation)^years
A 12% step every four years compounds alongside the annual raise. Over fifteen years it can account for over a third of total salary growth.
It is around the long-run average for staying in the same role in many markets, roughly one point above inflation. Changing employer is typically where larger step changes occur.