Raise Calculator
See what a raise is really worth once inflation is removed, in both a real percentage and today buying power.
How it's calculated
A raise feels good, but its real value depends on inflation. If prices rise faster than your pay, a raise on paper can still leave you worse off. The real raise strips out inflation to show how much more your paycheck actually buys.
Take the default. A 4 percent raise on a $70,000 salary lifts it to $72,800, a $2,800 bump. But with 3 percent inflation, that new salary buys what $70,680 buys today. So the real raise is about 0.97 percent, or $680 in today dollars, not the 4 percent on the offer letter.
The rule of thumb is simple. Subtract inflation from your raise to get the real number. A raise that only matches inflation keeps you flat, and one below inflation is a quiet pay cut. When you negotiate, aim to clear inflation with room to spare, since that gap is your actual progress.
Assumptions
- The real raise is one plus your raise divided by one plus inflation, minus one. The new salary is also shown in current buying power.
- Uses one year of inflation and does not include taxes, which apply to the nominal figure.
Last updated: 2026-08-08
These assumptions follow our general methodology.
Frequently asked questions
How do I calculate my real raise?
Take your raise and adjust it for inflation. The precise formula is one plus your raise divided by one plus inflation, minus one. A quick estimate is just your raise minus the inflation rate, so a 4 percent raise with 3 percent inflation is roughly a 1 percent real raise.
Is a raise that matches inflation a good raise?
It keeps your buying power flat rather than growing it. That is better than falling behind, but it is not real progress. A raise that beats inflation is the one that actually makes you better off.
What is a COLA?
A cost-of-living adjustment, a raise meant to keep your pay level with inflation. A pure COLA holds your buying power steady. Anything above it is a real increase, and anything below it means you are losing ground.
Why does my bigger salary feel the same?
Often because inflation ate the raise. If prices rose about as much as your pay, your buying power barely moved even though the number on your paycheck went up. This calculator shows that gap in today dollars.