Raise & Cost-of-Living Adjustment Calculator
See what a raise is really worth after inflation.
Open the Interactive CalculatorHow It's Calculated
New Salary = Current Salary × (1 + Raise%).
Real Raise % = [(1 + Raise%) ÷ (1 + Inflation%) − 1] × 100 — this is the raise adjusted for lost purchasing power.
Example
Example: a 4% raise when inflation runs at 3.2% is only a real raise of about 0.8% — most of the nominal increase just keeps pace with rising prices rather than growing your actual buying power.
Frequently Asked Questions
Why isn't a 4% raise just a 4% improvement?
Because prices are rising too. If inflation is 3.2%, only the portion of your raise above that rate improves your actual standard of living.
What inflation rate should I use?
The most recent 12-month CPI-U figure is a reasonable default, though your personal inflation rate may differ based on your spending mix.