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 across remaining career.
What this tool does
This calculator models the lifetime cash difference between accepting a raise and accepting a promotion by comparing cumulative salary across both paths over your remaining career years. It takes your current salary, the monetary value of each option, and applies annual growth to both scenarios to show how the choices diverge over time. The result illustrates total earnings under each path, helping you see which option generates more cumulative income. The calculation assumes consistent annual growth applied to both the raised and promoted salary tracks, and does not account for variables like job security, benefits changes, relocation costs, or taxes. Output is for educational comparison only.
Enter Values
People also use
Planning
Raise Negotiation Calculator
Lifetime value of a successful raise negotiation, including the compound future raises that build on the higher base salary.
Income
Career Earnings Peak Calculator
Project your peak career earnings with this career earnings peak calculator using current salary, annual growth rate, and years to peak.
Income
Notice Period Value Calculator
Calculate the cash value of your contractual notice period including base salary plus the value of benefits you'd receive during it.
Formula Used
Spotted something off?
Calculations or display — let us know.
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 option with the lower calculated total 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.
Comparing a £3,000 raise against a £15,000 promotion over 20 years yields 322,444.49 in total value.
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
Applies a growing annuity formula to each salary lift, compounding annual growth over career years to produce cumulative earnings totals for the raise and promotion paths.
References
Frequently Asked Questions
Always pick promotion?
Counter-offer value?
Responsibility risk?
Stacking — both?
Related Calculators
Raise Negotiation Calculator
Lifetime value of a successful raise negotiation, including the compound future raises that build on the higher base salary.
Career Earnings Peak Calculator
Project your peak career earnings with this career earnings peak calculator using current salary, annual growth rate, and years to peak.
Notice Period Value Calculator
Calculate the cash value of your contractual notice period including base salary plus the value of benefits you'd receive during it.
More Income Calculators
Income
After-Tax Yield Calculator
Calculate after-tax yield on bonds or savings by entering your pre-tax yield and marginal income tax rate to see the return you actually keep.
Income
Airbnb Income Calculator
Calculate Airbnb income with monthly and annual net estimates from nightly rate, occupancy percentage, cleaning fees, and operating costs.
Income
Airbnb vs Long-Term Rental Calculator
Compare net income from Airbnb short-term rental vs long-term rental strategies with this annual income calculator for the same property.
Income
Amazon Flex Pay Calculator
Calculate net Amazon Flex earnings after vehicle costs and self-employment tax reserve. Enter hourly rate to see annual net income and effective hourly rate.
Income
Annual Bonus Compound Calculator
Future value of investing annual bonuses over a career at expected return. Enter bonus after tax and years to see compound fv of investing every bonus.
Income
Annual Gift Tax Allowance Value Calculator
Calculate the cumulative tax saving from your annual gift tax allowance over multiple years by entering your allowance amount, tax rate, and time period.
Explore Other Financial Tools
Real Estate
Farmland Return Calculator
Estimate the total annual return on farmland. Enter land value, annual rental income, and expected appreciation to see yield and total return.
Marketing & Growth
Loyalty Programme Value Calculator
Calculate loyalty programme net value from retention lift and ongoing cost — what the programme returns annually per active member.
Lifestyle
Health & Wellness Budget Calculator
Calculate annual health and wellness budget across gym, supplements, healthcare, and treatments — what you actually spend looking after yourself.