Salary CAGR Calculator

The right way to measure long-term salary growth

A simple average of yearly raises doesn't properly account for compounding - CAGR calculates the single smoothed annual growth rate that, applied consistently and compounded, would take you from your starting salary to your current one.

Worked example

For a salary growing from $50,000 to $80,000 over 5 years:

CAGR = ((80000/50000)^(1/5)) - 1 = 9.86% per year

This 9.86% figure represents the compounded average - useful for comparing your own career salary growth against inflation, industry benchmarks, or a different career path's trajectory on an apples-to-apples basis.