Comprehensive Guide
Learn more in our Personal Finance Guide.
How it works
raise vs promotion value calculator takes your inputs and produces raise: new salary, raise: hourly rate, promotion: hourly rate, promotion: salary increase, promotion: % increase, hourly rate difference. Compare the true value of a salary raise versus a promotion with new responsibilities and hours. You provide 5 inputs: Current salary (currency, in dollars) (default: 75000 dollars); Raise amount (%) (percent, in percent) (default: 5 percent); Promotion salary (currency, in dollars) (default: 90000 dollars); Promotion extra hours/week (number) (default: 5); Current hours/week (number) (default: 40). The calculator returns 6 outputs: Raise: new salary (a secondary output); Raise: hourly rate (the primary result); Promotion: hourly rate (a secondary output); Promotion: salary increase (a secondary output); Promotion: % increase (a secondary output); Hourly rate difference (a supplementary figure). Personal finance decisions trade off today's comfort against tomorrow's security. The numbers behind that trade-off — how much to save, spend, borrow, or insure — are what this calculator makes concrete. Rather than rules of thumb, it gives you the actual arithmetic for your situation so you can compare options side by side and decide with confidence. The underlying formula: Hourly rate = Annual salary ÷ (hours/week × 52) | Hourly diff = Raise hourly − Promotion hourly With the default values, raise: hourly rate is computed from the interaction of every input field — change any one of them and the result updates immediately, so you can stress-test different scenarios without re-entering the whole form. Adjust the inputs to match your real financial situation. The defaults are realistic starting points, but every person's circumstances differ — your actual income, expenses, rates, and timelines will produce a different answer. Use the tool iteratively: start with the defaults, then change one variable at a time to see which factor has the largest impact on your outcome.Formula
Hourly rate = Annual salary ÷ (hours/week × 52) | Hourly diff = Raise hourly − Promotion hourly
Tips
- The raise might pay more per hour even though the promotion pays more total.
- A promotion title can lead to higher future earnings — weigh long-term compounding.
- If the hourly rate drops significantly, negotiate for the promotion with fewer extra hours.
- Think 5 years ahead: a promotion today may lead to Director-level in 3–5 years.
Frequently asked questions
Should I always take the promotion?
Not always. Consider hourly rate impact, stress levels, career trajectory, and work-life balance. If the promotion nearly doubles your hours for 20% more pay, the raise might be better short-term.
How do I negotiate a promotion salary?
Research market rates for the new title. Quantify your current contributions. Present the promotion as a step up with market-aligned compensation.
What does the raise vs promotion value calculator calculate?
It takes current salary, raise amount (%), promotion salary, promotion extra hours/week, current hours/week as inputs and computes raise: new salary, raise: hourly rate, promotion: hourly rate, promotion: salary increase, promotion: % increase, hourly rate difference. The primary output is raise: hourly rate. Compare the true value of a salary raise versus a promotion with new responsibilities and hours.