Annual salary inflation

Hello everyone,

I am excited to find this website! How entertaining and educational! Now, I need some help from all you professionals.

I want to show employees at $53,000 (as an annual salary) what their entire lifetime earning will be after 50 years with a 5% raise every year. If anyone could generate a template, that would be awesome.

I also want to show the employees at my place of work how important it is to stick with a company that offers annual raises, and matches 401k dollar by dollar. Although, the template for the 401k I have already created.

Please help me, and thank you all!

Kris
US Army Veteran

assuming this is in range A1:B4

starting salary $53,000
years 40
annual raise 5%
final salary $373,119

the formula you want in cell B4 is

=(1+B3)^B2*B1

If I needed to illustrate using a line chart, will I use the same formula?

yes, depending on how you wish to display the data

For example, you could do it as a time series with each line representing a different rate of increase.

The attached might help

You should also bear in mind of course that inflation is likely to erode the "real" value of your salaries. So a salary of $53,000 in 2017 would need to be escalated to $182,000 in 2067 to keep its real value, assuming an inflation rate of 2.5%pa.