Salary vs inflation calculator: if pay stays flat while prices rise, see real purchasing power, cumulative loss, and the raise needed to keep pace.
How it works
A flat salary is a silent pay cut when prices rise every year. Inflation compounds the same way interest does—3.5% per year for 10 years means prices are about 41% higher, so today's $72,000 buys what roughly $51,000 would buy in today's dollars. To keep pace, you'd need about $101,500 in nominal salary in year 10—not a 3.5% raise once, but roughly 3.5% every year.
Frequently asked questions
My employer gave 3%—did I keep up?
Only if inflation was 3% or lower that year. At 3.5% inflation, a 3% raise still loses ground. Over a decade, missing 0.5% per year compounds into thousands in lost purchasing power—use this tool to show the cumulative gap in a review conversation.
Should I use CPI or my personal inflation?
Official CPI is a basket average—your rent, childcare, or healthcare may rise faster. Run the calculator at national CPI first, then retry with a higher rate (5–7%) if your big expenses outpace headlines.
Does a cost-of-living adjustment (COLA) fix this?
COLA only works if it matches or beats your actual expense inflation and applies every year—not a one-time bump. Some COLAs lag CPI by a year or cap increases; model your contract's formula separately if it differs from steady annual CPI.