Salary rate of return

[jIM_Ohio]

Curious if anyone calculated a rate of return on their salary increases?

I have worked for 11 years and my salary has doubled.

72/11=6.5% annual salary increase (using rule of 72).

[disneysteve]

I'm a physician. I don't want to think about mine. Doctors have been seeing their real incomes (adjusted for inflation) falling for years now, so mine would be a negative number.

[MonkeyMama]

I just checked and my ROR is 10%. Been out of college 9 years and this includes a move to a lower COL area and almost a year off of work for kids.

A LOT of changes in the industry, which mostly explains it.

Most of those raises were early on. My salary increased 50% my first 2 years out of school. Then we moved and I got a few 10% raises before it slowed down.

I can't imagine what my ROR would have been if we hadn't of moved. MUCH higher. I just wouldn't be able to afford rents/mortgage.

You could say I was in the right place at the right time, but it's unnerving that years of experience only buys a few thousand a year over new grads. Starting pay has just increased that much so it's kind of crazy. Employers struggle to pay exploding salaries...

(If you include overtime and retirement benefits, my wage has about tripled. BUT no, I did not include insurance benefits because I don't have any. Retirement benefits makes it an annual ROR Of about 11%).

[JinCO]

I think I'm around 9%

[tripods68]

I'm at 13%

[kork13]

Well, technically, my income has gone up by about 370% over the last year, but that doesn't represent my life events of late very well... However, looking forward (since the military has a defined pay schedule that only changes to account for inflation), the next 3 years should be an average of about 10.5%, slowly progressing to about 3% above inflation over the (very) long term.

[Joan.of.the.Arch]

Not calculating for me --because my employment has been scatter-shot-- but for my spouse, I see that he has generally had 8 or 9% "returns." However, taking into account disneysteve's concern about real money, I see that in the last 23 years he has only increased wages by 2.6 times. I used a real money calculator based on the consumer price index to figure that. I'm too lazy to convert all the figures into same-year dollars to get a rate of returns that takes into account the real value of the dollars.

Measuring Worth - Purchasing Power of US Dollar

I also included in the calculations the dollars of insurance benefits that the employer has paid, which probably most people would not do.

[disneysteve]

Even if you don't factor in inflation, my number would still be lousy. My salary hasn't changed in 5 years.

[atomicrc11]

So far I've been in the workforce for 4 years and I've averaged a 24% salary increase. In the future I won't be getting much above a COLA until I decide to change jobs. I plan on staying where I am now as the job is quite stable and I like it very much.

[Snave]

I have been out of college 11 years and mine has quadrupled. It would equate to about 13%. However, I don't expect it to go up all that much anymore.

[srblanco7]

18 years w/ the same company - salary has increased by a factor of 4.5. Based on my quick estimate that's about 8.5% per year on average.

[fruitbowlk]

Mine is 7.2