Salary inflation calculator
Compare assumed annual pay rises with inflation over a chosen number of years.
Formula
Needed pay = pay × (1+i)^n; projected pay = pay × (1+g)^n; real change = [(1+g)^n/(1+i)^n − 1] × 100.
Pay needed to keep purchasing power ≈ (50,000)×(1+(3)÷100)^(5) · Projected nominal pay ≈ (50,000)×(1+(4)÷100)^(5) · Total real pay change ≈ ((1+(4)÷100)^(5)÷(1+(3)÷100)^(5)-1)×100
How to use
- Enter current pay for a consistent pay period and currency.
- Set assumed annual inflation, annual pay rise and years.
- Compare required pay, projected pay and total real change.
Examples
- Pay 1,000, inflation 10%, raise 21%, one year: projected 1,210; real gain 10%.
Frequently asked questions
Are these historical inflation data?
No. Enter your own constant annual assumptions; no country or year table is used.
Can I enter monthly salary?
Yes. Both pay amounts retain the same monthly or annual basis you entered.
Does real change mean annual growth?
No. It is the cumulative purchasing-power change over all the years.
Sources
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