Inflation Adjusted Raise Calculator

When a raise is actually a pay cut

A raise smaller than the current inflation rate represents a real, inflation-adjusted pay cut, even though the nominal dollar amount on your paycheck went up - this calculation shows the minimum raise needed just to tread water.

Worked example

For a $60,000 salary with 3.5% inflation:

Salary Needed to Maintain Purchasing Power = 60000 x 1.035 = 3.5% raise needed (62,100.0 total, +2,100.0)

Any raise below this amount means your real purchasing power has actually declined compared to the previous year, even while your nominal salary increased - genuine standard-of-living improvement only begins with raises above this inflation-matching threshold.