Lifetime Earnings Calculator – Financial benefits of changing career

Earlier in the book, we told stories about friends who chose to change careers. Some picked up new skills or returned to school, while others applied what they already knew in new areas. All of them experienced financial and professional growth. 

Changing careers can have different benefits for everyone. It’s important to consider how your decision will impact your finances. The calculator below helps you compare the possible outcomes and see your return on investment. After you enter your information, you’ll get an estimate of your lifetime earnings. The calculator will help you define: Will this change improve your financial health and security? 

Getting a higher salary, either directly or through other benefits, is important. Changing careers can also help you work longer. If your current job might be replaced by new technology or automation, learning new skills and moving to a growing field can help you avoid job loss, work for more years, and keep your finances secure. If your friend starts with a salary that’s $10,000 higher than yours, they could end up earning $500,000 more over their career if you both get the same raises each year. 

Salary isn’t the only thing that matters. You might also receive less for retirement, have less life insurance, or miss out on investment and savings options from your employer. These differences can make it harder to maintain the lifestyle you want. 

Another thing to think about is how many years you plan to keep working—30, 20, 10, or just 5. Does changing careers make sense for you, and is the time and money you’ll spend worth it? Would switching jobs help you more if you do it early, in the middle, or later in your career? Or could staying in your current job be a better choice if the opportunity cost isn’t high enough to justify a change? You might also be able to stay in your current career and use extra sources of income to make up for any opportunity cost. 

Looking at the numbers can help you see things more clearly. Start by entering these key details: 

• Current Salary: Enter your current total pay. 

• Investment Cost: Enter the total amount you expect to spend on learning new skills and earning certifications. 

• Years to Reskill: Enter how long you think it will take to learn new skills, earn certifications, and find a new job. 

• Total Years of Service: Enter how many years you plan to work before retiring. 
• Annual Increment: Enter the average percentage you expect your pay to increase each year. 
• Future Salary: Enter what you expect your total pay to be after changing careers or jobs. 

Try different scenarios with the calculator. Seeing the exact numbers can help you make better decisions.