Merit Increase Calculator

How to Use the Merit Increase Calculator

The Merit Increase Calculator is a tool designed to help you calculate the potential salary increase based on performance, years of service, and compa-ratio. Follow the step-by-step guide below to use the calculator effectively.

Step 1: Input Current Annual Salary

• Label: Current Annual Salary
• Enter your current salary in the input field labeled “Current Annual Salary”.
• This input is mandatory, and the value should be a number greater than or equal to zero with up to two decimal places.

Step 2: Select Your Performance Rating

• Label: Performance Rating
• Choose your performance rating from the dropdown list. The options range from “Exceptional (5)” to “Unsatisfactory (1)”.
• This selection is required to determine the base merit increase.

Step 3: Enter Years of Service

• Label: Years of Service
• Input the number of years you have been with the company in the designated field.
• This is a required field and should be a whole number with a minimum value of zero.

Step 4: Input Compa-ratio

• Label: Compa-ratio (%)
• Enter your compa-ratio as a percentage (0 to 200) in the appropriate input box.
• This field is required and allows decimals with one decimal place precision.

Step 5: View Result Fields

Based on your inputs, the calculator will generate the following result fields:

• Base Merit Increase: Calculated using the formula (performanceRating * 1.2) - 1 and displayed as a percentage with two decimals.
• Service Year Adjustment: Determined by min(yearsOfService * 0.2, 2) and shown as a percentage with two decimals.
• Compa-ratio Adjustment: Evaluated using max((100 - compaRatio) * 0.05, 0) and presented as a percentage with two decimals.
• Total Increase Percentage: The sum of base increase, service adjustment, and compa adjustment, formatted as a percentage with two decimals.
• Increase Amount: Calculated through the formula currentSalary * (totalIncreasePercentage/100) and displayed in USD with two decimal places.
• New Annual Salary: The sum of the current salary and increase amount, formatted in USD currency with two decimals.