Salary Inflation Calculator 2026

Is your raise beating inflation? See your real purchasing power change.

$
$

You lost 9.0% in purchasing power

Nominal raise

+13.3%

Cumulative inflation

+24.5%

Real raise

-9.0%

Dollar gap

-$8,388

behind inflation

To maintain 2020 purchasing power, you would need $93,388 in 2025.

Uses CPI-U data from the Bureau of Labor Statistics. Future inflation projections are estimates.

How it works

Enter your starting salary, current salary (or raise percentage), and the time period. The calculator computes cumulative inflation over that period using CPI data and compares it to your salary growth.

Real raise = nominal raise − inflation. If you got a 5% raise and inflation was 3%, your real raise is about 2%. The calculator shows this in both percentage and dollar terms.

For forward projections, you can set an expected inflation rate and see how your salary's purchasing power changes over 1, 5, 10, or 20 years with different raise scenarios.

FAQ

How do I know if my raise keeps up with inflation?

Compare your raise percentage to the CPI inflation rate. If your raise is lower, your real purchasing power decreased. Enter your numbers above to see the exact impact.

What is real vs nominal salary?

Nominal = the dollar amount. Real = adjusted for inflation (what it can actually buy). $100k in 2020 has the purchasing power of roughly $75-80k in 2026 dollars due to cumulative inflation.

What is a good annual raise?

At minimum, your raise should match inflation (~3%) to maintain purchasing power. Average merit increases are 3.5-4%. A raise below inflation is effectively a pay cut.

How does inflation compound?

3% annual inflation ≠ 30% over 10 years. It compounds to ~34% (1.03^10). Stagnant salaries lose purchasing power faster than most people expect.

Related tools

CPI data from the Bureau of Labor Statistics. Future projections are estimates, not predictions. Individual inflation experience varies based on spending patterns.