Salary Raise vs Inflation Calculator (Real Raise)
See if your raise actually beats inflation — calculate real purchasing-power change.
What this calculates
A 3% raise during 4% inflation is a pay cut in real terms. This calculator converts a nominal raise into real (inflation-adjusted) terms so you know whether your buying power actually grew.
Formula & how it works
Real raise % = ((1 + nominal/100) / (1 + inflation/100) − 1) × 100. New real salary = old × (1 + real_raise/100).
Worked example
Old salary $60,000, raise 4%, inflation 5%. Real raise = (1.04/1.05 − 1) = −0.95%. New real value $59,429 — slight pay cut despite the nominal raise.
Frequently asked questions
What inflation number to use?
Use CPI for your country/region (~3% US long-run, varies). For 2024-2026 US used 3-4%.
When to ask for a raise?
Aim for inflation + market shift + your performance increment. 5-8% is typical 'merit + COL' band; promotion raises 10-20%.
Bonus vs base raise?
Base raise compounds — every future raise is a % of higher base. One-time bonuses don't compound.
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