Inflation-Adjusted Raise Calculator
A raise can be larger than inflation without the exact real change equaling the percentage-point gap. This tool shows both numbers clearly.
- Nominal dollar raise
- $2,500.00
- Percentage-point gap
- +1.50 pp
- New salary in today's dollars
- $50,724.64
Why the exact real raise is not simple subtraction
The percentage-point gap is useful context, but it is not the exact purchasing-power change. The exact formula divides the new pay factor by the inflation factor.
Real raise = ((1 + nominal raise) ÷ (1 + inflation)) − 1
For a 5% raise and 3.5% CPI, the gap is 1.50 percentage points. The exact result is about 1.45%. For a 3% raise and 3.5% CPI, the exact result is about −0.48%.
National CPI versus your cost of living
CPI-U measures average price change across a national basket. Your housing, transportation, health care, family, debt, and location can produce a different personal rate. Use the custom field for scenario planning, not as a claim that one number describes every household.
Source: U.S. Bureau of Labor Statistics. Data period: June 2026; reviewed 2026-08-04. See the full inflation methodology.