Did Your Raise Actually Make You Richer?
See if your pay raise beat inflation or if you're actually earning less in real terms. The truth about your purchasing power.
You got a raise. Congratulations? Maybe. If inflation was higher than your raise, you can buy less than you could before — even with more dollars in your account. This calculator shows you the truth. Enter your old salary, your new salary, and the inflation rate over that period. See whether you actually came out ahead. A 3% raise during 6% inflation means you effectively took a 3% pay cut in purchasing power. Your employer paid you more. The economy took it back. This isn't pessimism — it's math. And knowing the math helps you negotiate better next time.
Calculator
Common use cases
- Understanding whether your raise was real
- Preparing for salary negotiations with facts
- Tracking actual purchasing power over time
- Recognizing when 'raises' are actually cuts
How to use
- Enter your current annual wage
- Enter your previous annual wage
- Input the inflation rate over the period
- See your real wage change
FAQ
What is real wage vs nominal wage?
Nominal wage is the dollar amount you earn. Real wage adjusts for inflation to show actual purchasing power.
My raise was 3% but inflation was 5%. Am I worse off?
Yes, your real wage decreased by approximately 2%. You need at least a 5% raise to maintain purchasing power.
Where can I find inflation rates?
The Bureau of Labor Statistics (BLS) publishes the Consumer Price Index (CPI) which measures inflation.
So my raise was worthless?
If it was below inflation, you lost purchasing power. Even at inflation, you just stayed even. You need to beat inflation to actually get ahead.
This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.