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Pay Raise Calculator

What is your raise really worth? Compute the real, inflation-adjusted raise in $ and % — and whether it beats inflation.

Examples 4% at 3% inflation2% raise$80,000, 5%

Reale Erhöhung

+0,97 %

Schlägt die Inflation nach Inflation

Neues Gehalt (nominal)
$62,400.00
Kaufkraft (heutiges Geld)
$60,582.52
Reale Erhöhung pro Jahr
$582.52

Key facts

  • Example: $60,000, a 4% raise at 3% inflation → new salary $62,400, but in today’s purchasing power only about $60,583 — a real raise of ~0.97% (~$583). It beats inflation, but barely.
  • Rule of thumb: only the part of the raise above the inflation rate is a real gain. A 3% raise at 3% inflation is a real zero; below that you lose purchasing power.
  • The comparison is meant pre-tax. Because the US taxes progressively, a raise can net slightly less than gross — for take-home use the US paycheck calculator.

FAQ

How do I calculate a real pay raise?
Divide the new salary by (1 + inflation rate). Example: $62,400 new salary at 3% inflation → $62,400 / 1.03 = $60,583 in today’s purchasing power. Versus $60,000 that is a real raise of about 0.97%.
Does my raise beat inflation?
Only if the percentage raise is higher than the inflation rate. At the same level it is a real zero, below it a real pay cut. The calculator tells you directly whether your raise beats inflation.
Which inflation rate should I enter?
The default is 3% — the long-run US consumer-price average (BLS CPI; the Fed target is 2%). In high-inflation years it was much higher. Best enter the currently expected or actual CPI figure.

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