Is your salary keeping up with inflation? Use this calculator to compare your current salary to an inflation-adjusted reference and see your real gain or loss.
The Salary Inflation Calculator will help you determine whether your income or salary have kept pace with the inflation. In simple terms, the tool compares your current salary with your reference salary inflated up to today.
Salary after inflation adjustment = Reference salary × (1 + Inflation rate/100)
Gain or loss = Current salary − Salary after inflation adjustment
Let us say that your salary was $60,000 last year. If inflation over the year was 3%, your inflation-adjusted salary will be $61,800. If your current salary is $65,000 then your gain is $3,200.
An inflation-adjusted salary is the salary you would need to have today to maintain the same purchasing power as a reference salary (your current salary, or salary from a previous year) after it has been adjusted for inflation.
Inflation causes the cost of living to rise over time, so if your salary or income does not increase at least as fast as inflation, your purchasing power (real income) is reduced.
You can use this calculator to compare your salary increases with inflation for the purposes of negotiating pay rises, planning your finances, or simply to understand how your real income has grown over time.
