Salary Inflation Calculator
See if your raises are keeping up with the cost of living. This tool translates past earnings into current dollars to show you your true purchasing power.
What is a salary inflation calculator?
A salary inflation calculator uses the Consumer Price Index (CPI) to determine how the purchasing power of your income has changed over time. It shows you what a salary from a past year would be worth in today's dollars, or what your current salary was worth years ago.
How is inflation-adjusted salary calculated?
The formula is: Past Salary × (CPI in Target Year / CPI in Base Year). This reveals the "real" value of the income after accounting for the rising cost of goods and services.
Why does my salary feel like it's buying less?
If your salary increases at a slower rate than inflation, your "real income" is actually decreasing. This is known as a loss of purchasing power.
What is the CPI?
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. it is the most common measure of inflation in the United States.