Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

How to Calculate Annual Rate of Growth of Salary Increase

By Motley Fool Staff – Updated Apr 23, 2025 at 12:46PM

Key Points

  • Salary grew from $40,000 to $60,000 over 10 years; a 50% total increase.
  • The compound annual growth rate (CAGR) of the salary is 4.14%.
  • CAGR calculation captures consistent annual growth, allowing for industry comparison.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Our Guides

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.