Estimate your future earnings based on your current pay, expected raises, and potential bonuses.
Your projected income for the target year will be: —
Understanding the Future Pay Calculator
The Future Pay Calculator is a tool designed to help you visualize your potential earnings over a specified period. It takes into account your current annual income, annual percentage raises, an average annual bonus percentage, and the number of years you wish to project your income.
How it Works:
The calculator uses a year-by-year projection. For each year, it calculates the income based on the following logic:
Base Income for the Year: This is the income from the previous year, increased by the specified annual raise percentage.
Bonus Calculation: The bonus for the year is calculated as a percentage of the *current year's base income* (before adding the bonus itself). This is a common way bonuses are structured, relating to the income earned in that specific year.
Total Income for the Year: The sum of the base income for the year and the calculated bonus.
The Formula:
Let:
CI = Current Annual Income
R = Annual Raise Percentage (as a decimal, e.g., 3% = 0.03)
B = Average Annual Bonus Percentage (as a decimal, e.g., 5% = 0.05)
The calculator displays the projected income for the final year (Year N).
Use Cases:
Financial Planning: Understand how your income might grow, aiding in long-term financial goals like saving for a down payment, retirement, or major purchases.
Career Advancement: Set realistic salary expectations when negotiating raises or considering new job opportunities.
Budgeting: Create more accurate budgets based on anticipated income increases.
Investment Decisions: Estimate future disposable income to inform investment strategies.
Disclaimer: This calculator provides an estimate based on the inputs provided. Actual income may vary due to economic factors, company performance, individual performance, and changes in compensation structures.
function calculateFuturePay() {
var currentAnnualIncome = parseFloat(document.getElementById("currentAnnualIncome").value);
var annualRaisePercentage = parseFloat(document.getElementById("annualRaisePercentage").value) / 100;
var yearsToProject = parseInt(document.getElementById("yearsToProject").value);
var potentialBonusPercentage = parseFloat(document.getElementById("potentialBonusPercentage").value) / 100;
var resultDiv = document.getElementById("result");
var resultSpan = resultDiv.querySelector("span");
// Validate inputs
if (isNaN(currentAnnualIncome) || currentAnnualIncome < 0 ||
isNaN(annualRaisePercentage) || annualRaisePercentage < 0 ||
isNaN(yearsToProject) || yearsToProject < 1 ||
isNaN(potentialBonusPercentage) || potentialBonusPercentage < 0) {
resultSpan.textContent = "Invalid input. Please enter valid positive numbers.";
resultSpan.style.color = "#dc3545"; // Red for error
return;
}
var projectedIncome = currentAnnualIncome;
for (var i = 0; i < yearsToProject; i++) {
// Calculate income for the next year
var incomeBeforeBonus = projectedIncome * (1 + annualRaisePercentage);
var bonusAmount = incomeBeforeBonus * potentialBonusPercentage;
projectedIncome = incomeBeforeBonus + bonusAmount;
}
resultSpan.textContent = "$" + projectedIncome.toFixed(2); // Display with 2 decimal places
resultSpan.style.color = "#28a745"; // Green for success
}