Loading calculator… (JavaScript required)
Results are hypothetical illustrations based on the numbers you enter and simple assumptions: a constant return, with no taxes, fees or inflation unless stated. They are not predictions or guarantees; real returns vary from year to year and can be negative, and investing can lose money. Educational content only. Not financial advice. See our Disclaimer.
Quick answer: Take the $3-an-hour raise: on a full-time job it is $6,240 a year ($3 × 2,080 hours), more than the $5,000 bonus in the first year alone, and it repeats. Over 10 years that’s $62,400 in cash, or about $90,000 if invested at 8%, versus about $10,800 for the invested bonus.
The gut answer
Five thousand dollars, today, in one lump. The raise sounds like pocket change.
The real answer
$3 an hour on a full-time job is $3 × 2,080 hours = $6,240 a year — more than the bonus in the first twelve months alone, and it keeps coming. Over 10 years it is $62,400 in plain cash; invested at 8% it grows to about $90,000 versus about $10,800 for the bonus.
It gets better: future percentage raises are calculated on the higher base, and the raise lifts your retirement contributions and your next job offer. A one-time bonus does none of that.
The lesson
Recurring beats one-time, almost every time. Negotiate base pay before bonuses.
Watch the Short
More dilemmas
Try next
$1M or…? dilemma calculator
A lump sum today vs. payments over time (or a penny doubled). The channel’s signature question, with real math.
Open calculator →Compound interest calculator
“$X a month for Y years” — see exactly what it turns into, with a chart you can share.
Open calculator →Millionaire by age calculator
How much to invest each month to hit $1M by 40, 50 or 60.
Open calculator →Questions people ask
Is a $5,000 bonus better than a $3-an-hour raise?
No. $3 an hour on a full-time job is $6,240 a year, more than the bonus in the first year alone, and it repeats every year. Over 10 years that is $62,400 in cash (about $90,000 if invested at 8%) versus a one-time $5,000.
Why is a raise worth more than its yearly amount?
Future percentage raises are calculated on the higher base, retirement contributions rise with it, and your next job offer anchors to your current salary. A one-time bonus does none of that.
How much is a $3 raise per year?
$3 × 40 hours × 52 weeks = $6,240 a year before tax on a full-time schedule.
How much is a $3 raise over 10 years?
$62,400 in plain cash, or about $90,400 if each year's extra $6,240 is invested at 8%. That ignores future percentage raises, which make the raise worth even more.