Salary Growth Calculator

The salary growth calculator projects your monthly salary year by year using a yearly increment, optional promotions and bonuses. Because each raise is applied to the salary you already earn, growth compounds: a 5% raise on a bigger salary adds more ringgit than the first 5% did.

The formula

• Salary in year N = Current salary × (1 + increment %)^N
• A promotion adds a one-off jump in the year it happens: salary × (1 + promotion %)
• Total earned = the sum of each year's salary × 12, plus any bonus months
• Real (inflation-adjusted) salary = Future salary ÷ (1 + inflation %)^N

Worked example 1: steady raises

You earn RM5,000 a month and expect 5% a year.

• After 5 years: RM5,000 × 1.05^5 ≈ RM6,381.41
• After 10 years: RM5,000 × 1.05^10 ≈ RM8,144.47
• Total earned over 10 years (12 months a year, no bonus): about RM754,674

Worked example 2: what inflation does

If prices rise 2.5% a year, the RM6,381.41 salary in 5 years is worth about RM5,640 in today's money. Your pay has grown 27.6% on paper, but your buying power has grown about 12.8%. Use the inflation option to see your real progress.

What affects your result

• Increment rate. Many Malaysian employers give 3–6% a year for good performers; promotions are usually higher. Use a rate you can realistically expect.
• Promotions. A 10–20% jump in one year can matter more than several small raises, because every later raise builds on it.
• Bonus months. Bonuses add to yearly earnings but don't compound unless they are tied to your salary.
• Time. The longer the projection, the bigger the effect of compounding, and the more uncertain the estimate.

Gross vs take-home

The projection is your gross salary. EPF (usually 11%), SOCSO, EIS and PCB come off before pay reaches your bank, and PCB rises as you move into higher tax bands. Check the take-home pay for any projected salary with the salary calculator, and see how much of it builds up in EPF with the EPF growth calculator.

Using the calculator step by step

1. Enter your current monthly salary and the number of years to project (1–20).
2. Set a yearly increment or tap a quick chip: 3%, 5% or 8%.
3. Open the optional rows to add promotions, bonus months or inflation.
4. Read the headline salary, the total you'll earn and the average yearly raise, and check the chart for the year-by-year path.
5. Share the link or download the summary.

Common mistakes

• Using an unrealistic raise. An 8% raise every year for 20 years is rare; test a lower rate too.
• Ignoring inflation. A bigger number on paper can buy less if prices rise faster than your pay.
• Counting bonuses as permanent. Bonuses vary with company and personal performance.
• Planning commitments on gross pay. Loans and budgets should be based on take-home pay.
• Forgetting job changes. Moving employer often brings a bigger jump than a yearly increment; model it as a promotion.

Using the projection

Use it to set a target for your next salary negotiation, plan when you can afford a bigger commitment such as a home loan, or check whether a job offer beats staying put. Treat the result as an estimate, not a promise of future pay.

A useful habit is to rerun the projection once a year after your review. Compare the salary you actually reached with what you projected, and adjust the increment rate to match reality. Over a few years this gives you a realistic picture of your career growth, and shows early whether you need to ask for more, build new skills or look at other employers.