Assumptions

Current SituationWith a Pay Rise

Starting Salary (inc. Bonus)
600,000
900,000
Annual Salary Growth
2%
2%
Average Est. Effective Tax Rate (Federal)
30%
31%
Average Est. Effective Tax Rate (State and Local)
5%
6%
Average Annual Expenses (inc. housing, kids, etc.)
120,000
120,000
Annual Expenses Growth Rate
2%
2%
Current Situation
Year
Salary (Inc. Bonus)
Taxes
Expenses
Savings (Yearly)
Savings (Cumulative)

1
600,000
210,000
120,000
270,000
270,000

2
612,000
214,200
122,400
275,400
545,400

3
624,240
218,484
124,848
280,908
826,308

4
636,725
222,854
127,345
286,526
1,112,834

5
649,459
227,311
129,892
292,257
1,405,091

6
662,448
231,857
132,490
298,102
1,703,193

7
675,697
236,494
135,139
304,064
2,007,257

8
689,211
241,224
137,842
310,145
2,317,402

9
702,996
246,048
140,599
316,348
2,633,750

10
717,056
250,969
143,411
322,675
2,956,425

Situation After Pay Rise

Year
Salary (Inc. Bonus)
Taxes
Expenses
Savings (Yearly)
Savings (Cumulative)

1
900,000
328,500
120,000
451,500
451,500

2
918,000
335,070
122,400
460,530
912,030

3
936,360
341,771
124,848
469,741
1,381,771

4
955,087
348,607
127,345
479,135
1,860,906

5
974,189
355,579
129,892
488,718
2,349,624

6
993,673
362,691
132,490
498,492
2,848,117

7
1,013,546
369,944
135,139
508,462
3,356,579

8
1,033,817
377,343
137,842
518,632
3,875,211

9
1,054,493
384,890
140,599
529,004
4,404,215

10
1,075,583
392,588
143,411
539,584
4,943,799

Statistics:
Total Pay Rise (Year 1):
Years Taken to get to 10 Year Savings Point:
Increase in Cumulative Savings After 5 Years:
Increase in Cumulative Savings After 5 Years:
Increase in Cumulative Savings After 10 Years:

944,533
67%
67%

50%

6000000
5000000
4000000
3000000

Cummulative
Savings (with Raise)

2000000

"Cummulative
Savings (Current)"

1000000
0
1 2 3 4 5 6 7 8 9 10 11