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Lifetime Value of a Raise
A raise doesn't just affect this year. Every future raise you receive is calculated off your higher base — and the extra take-home can compound for decades. That awkward negotiation conversation is worth far more than the number on the offer letter.
$
yr
%
Typical: 2–5%. Future raises will apply to the higher base.
%
Lifetime value if extra is invested
$445,876
- Raise year 1$5,000
- Raise in year 25 (compounded salary growth)$10,164
- Total extra earned over career (not invested)$182,296
- Lifetime value (each year's extra invested)$445,876
Assumes salary growth rate compounds future raises off the higher base. The invested FV uses a growing annuity formula: each year's extra earnings (raise × (1+g)^k) are invested at the investment return. This is a career-level estimate — individual years will vary. Does not account for tax, benefits changes, or job changes.