Calculate 3% salary raise over left retirement years

Occasional Visitor

i would like to calculate how much will cost the company the sum of 3% raise of the basic salary over the left years to retirement.

 

For example suppose in 2021 i get $500 as basic salary, and in 2022 I'll get 3% raise of the $500 = $515, and so on. so i wan to know how much the total of this raise will be on my retirement year lets assume retirement year will be in 2025?

 

is there any formula to calculate this?

2 Replies

@ammaralfarsi 

Let's say the starting salary 500 is in A2, the yearly raise 3% is in B2 and the number of years 5 (2021-2025) is in C2.

The total amount is =A2*((1+B2)^C2-1)/B2

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See Geometric series 

@ammaralfarsi 

Here is a simple and quick example, you could also do it with the interest calculation formula

... but with the simple formula it was faster :)).

Example in the inserted file.

 

Hope to have helped you with this.

 

I also wish you a lot of fun and success with Excel.