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How to Calculate Annual Rate of Growth of Salary Increase

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

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.
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