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Raise vs. inflation: real pay calculator

A raise can make your paycheck bigger and still leave you able to buy less. Enter your yearly pay before and after the raise and the inflation rate for the same stretch of time, and this shows what the raise is worth in real terms, after rising prices. It runs entirely in your browser; nothing you type is sent anywhere.

How the math works

  • Raise on paper = new pay ÷ old pay − 1.
  • Real raise = (new pay ÷ old pay) ÷ (1 + inflation) − 1. Subtracting inflation from the raise gets you close; dividing is the exact version, and the gap matters once it compounds over several years.
  • Pay needed just to keep pace = old pay × (1 + inflation). A new salary below that line is a pay cut in real terms, even though the number went up.
  • New pay in last year's dollars = new pay ÷ (1 + inflation): what the new salary buys at last year's prices.
  • The default inflation rate is the all-items CPI-U change over the 12 months ending August 2026 (3.4%), published by the Bureau of Labor Statistics. Use the period that matches your raise — your own costs can run higher or lower than the national index.
  • It measures buying power only. Whether your pay is right for your role and market is a separate question: how to find your real market rate.

Educational information about careers and earning — not financial, investment, legal, tax, or individualized career advice. Read the full disclaimer.

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