Career · Decision

Raise vs New Job Calculator

Should you stay and take the raise, or jump to a new job? Compare total earnings over time for both paths.

The data is clear: job-hoppers earn significantly more than loyal employees. Staying at the same company typically yields 3–4% annual raises, while changing jobs often delivers 10–20% salary jumps. Over a career, this difference compounds into hundreds of thousands of dollars. This calculator projects both paths over time so you can make an informed decision — factoring in not just the immediate difference, but the compounding effect of a higher salary base.

Over 5 years, the new job path earns +$62,648 more than staying with the raise. That's a +$11,800/year starting advantage.

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Expected annual raises at either job

Raise vs new job

With raise

$83,200/yr

New job

$95,000/yr

5-yr cumulative diff

+$62,648

Annual advantage

+$11,800/yr

Salary projection

Year 0
$80000 vs $80000
Year 1
$83200 vs $95000
Year 2
$85696 vs $97850
Year 3
$88267 vs $100786
Year 4
$90915 vs $103809
Year 5
$93642 vs $106923

How to use this calculator

Current salaryYour current annual salary. This is the baseline for both paths.

Expected raiseThe annual raise you expect if you stay. Average US raise: 3–4%. Top performers may get 5–7%.

New job salaryThe offered salary at the new position. Job changes typically yield 10–20% increases.

Projection yearsHow far to project. 5 years is a good planning horizon. The longer the projection, the more the compounding advantage of a higher base salary.

Annual salary growthExpected annual raises at either job after the initial change. Assumes both paths grow at the same rate from their new base.

Real-world examples

$80K current, 4% raise vs $95K new job

Over 5 years with 3% annual growth: staying earns ~$432K, new job earns ~$504K. The $72K cumulative difference comes from starting at a higher base — every future raise is a percentage of a larger number.

$100K current, 5% raise vs $110K new job

The 10% new job premium seems modest, but over 10 years at 3% growth: staying = ~$1.26M, new job = ~$1.36M. That's $100K more from a single career move.

$60K current, 3% raise vs $75K new job

A 25% salary jump is significant. Over 5 years: staying earns ~$319K, new job earns ~$389K. The $70K difference could fund a year of aggressive investing.

Formula & Methodology

Salary projection

Salary(year n) = Starting Salary × (1 + growth_rate)^n
  • growth_rate = Annual salary growth rate (decimal)
  • n = Number of years

Cumulative earnings

Total = Σ Salary(year i) for i = 0 to n

Assumptions & limitations

  • Both paths grow at the same annual rate after the initial change. In reality, new jobs may offer different growth trajectories.
  • Does not account for signing bonuses, equity, or benefits differences.
  • Job stability risk is not modeled — new jobs have probation periods and higher layoff risk.
  • Tax implications of higher income (bracket creep) are not included.

Frequently asked questions

Is it better to get a raise or change jobs?

Data consistently shows job-hoppers earn 5–10% more per move vs 3–4% annual raises. But consider benefits, culture, commute, and stability — not just salary.

How often should I change jobs?

Every 2–4 years is common in tech and finance. The key is to leave for meaningful increases (15%+) rather than small jumps that don't offset the transition costs.

What about non-salary factors?

Benefits (health insurance, 401(k) match, equity), work-life balance, career growth, and company culture all matter. A $10K salary increase that costs you $5K in benefits isn't worth it.

Does job-hopping look bad on a resume?

Less than it used to. Staying 2+ years per role is generally fine. Red flags: multiple roles under 1 year. The key is telling a coherent career story.

Disclaimer: This tool is for educational purposes only and does not constitute financial advice. Consult a licensed financial advisor before making decisions.