Average Growth Rate Calculator
This calculator provides the average growth of earnings based on the demographic information you select. Average growth is calculated utilizing the historical earnings of people with similar demographics to those that you selected.
When Attorneys Use This Calculator
Attorneys utilize this calculator to assist in determining their clients' estimated future earnings potential. This calculator is often used in cases in which an individual's historical growth of earnings is either unknown or does not accurately represent that individual's future earnings growth.
In some cases, future earnings may be established through pay schedules, such as government employment with legislated rates of pay or unionized employment with a collective bargaining agreement. Established pay schedules should generally take precedence, if any are available.
For a calculation of your client's future earnings potential and economic damages, complete a case form and a consultant will contact you shortly.
Terms and Conditions
Please read the Terms and Conditions before using the calculator.
The average growth provided by this calculator is based on the earnings reported by individuals with similar demographic information.
To determine the average growth, data from the 2003 to 2014 Current Population Survey (CPS) are utilized. The Bureau of Labor Statistics conducts the CPS monthly, and the March supplement includes questions regarding earnings. The March supplements from 2003 to 2014 are utilized in this calculator.
Annual earnings for each year are calculated based on the demographics entered. Only wage earners, ages 18 to 80, who match the demographics entered are utilized in the analysis.
The growth rate is calculated for each year by comparing that year's average annual earnings to the previous year's average annual earnings. Finally, the average growth rate is calculated as the geometric average of the annual growth rates.