Raise vs Promotion Calculator
Cash value comparison: raise vs promotion.
Compare cash value of a raise against a promotion including title, responsibility, and pay changes. Enter salary to see lifetime cash difference.
What this tool does
Enter raise amount and promotion new salary minus current. The tool shows lifetime cash difference.
Enter Values
Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
5% raise (3,000 on 60k) over 20 years with 3% annual growth: 80,600 cumulative. Promotion jumping to 75,000 salary (15,000 lift): 403,100 cumulative. Promotions beat raises on cash alone, but with responsibility and risk attached.
Quick example
With current salary of 60,000 and raise amount of 3,000 (plus promotion lift of 15,000 and years remaining of 20), the result is 322,444.49. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.
Which inputs matter most
You enter Current Salary, Raise Amount, Promotion Lift, Years Remaining, and Annual Growth. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the winning option changes.
What's happening under the hood
Growing annuity for each lift scenario. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.
Why small rate shifts add up
A 3% pay rise looks modest. Apply it over a 30-year career with modest promotions and the lifetime difference runs to six figures. This calculator makes that invisible compounding visible in a way spreadsheets usually don't.
What this doesn't capture
Tax bands, pension contributions, student-loan deductions, and benefits-in-kind sit outside this calculation. The figure is the headline; your actual position depends on local tax rules and personal circumstances. Pair with a dedicated take-home calculator for the full picture.
Where to go next
This calculation rarely sits alone in a planning exercise. If you're running these numbers, you'll probably also want the raise negotiation calculator, the career earnings peak calculator, and the notice period value calculator — each one answers a different question in the same territory. Treating them as a set rather than in isolation usually produces a more honest picture.
Raise vs promotion produces a comparison based on the inputs provided.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Growing annuity for each lift scenario.
References
Frequently Asked Questions
Always pick promotion?
Counter-offer value?
Responsibility risk?
Stacking — both?
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