Raise vs. Job Hop Calculator

Switching jobs typically produces a larger immediate salary jump studies consistently show job changers earn 10–20% more on average, while typical annual raises are 3–5%. But the math isn't purely about the starting salary. The post-hop raise rate matters too, as does how quickly you ramp up in the new role. The calculator models cumulative earnings over your chosen horizon, so you can see whether a higher starting salary at a new job catches up with and surpasses steady compounding raises at your current one.

There's no universal threshold, but a 10–15% increase is often cited as the minimum worth seriously considering less than that, and the disruption, adjustment period, and potential loss of unvested equity or benefits may not be worth it. The financial break-even depends on whether your new employer has a strong raise history. An $80,000 offer growing at 2% per year will eventually fall behind a $70,000 salary growing at 5% per year the calculator shows exactly when.

From a pure earnings standpoint, job hopping has historically correlated with higher lifetime income for knowledge workers. The financial penalty for staying too long at one employer comes from missing out on market-rate raises that only happen at transitions. That said, this calculator models only the financial dimension it doesn't account for career growth trajectory, relationships, learning opportunities, or the risk premium of changing roles. Treat it as one input in a broader decision.

The break-even year is the first year where cumulative earnings under the job-hop path exceed cumulative earnings under the stay path. Cumulative earnings is the running total of all salaries paid from year 1 through year N not just the salary in year N. In the early years of a high-paying new job, the cumulative advantage may not outweigh the salary advantage your current role has from years of compounding raises. The chart shows both lines so you can see where they cross.

This calculator models base salary only. Signing bonuses and equity grants can significantly change the math, especially in early years. A $20,000 signing bonus adds directly to year-1 earnings for the hop path. RSU or option vesting schedules are more complex they're real compensation but conditional on staying. If you have concrete equity numbers, you can add them to the new job salary in year 1 (for a bonus) or spread across the vest period to get a rough comparison.