Inflation-Adjusted Salary Calculator
Calculate how inflation affects your salary's purchasing power over time using Consumer Price Index (CPI) data
What is Inflation?
Inflation is the rate at which prices for goods and services increase over time, eroding purchasing power. When inflation is 3% per year, something that costs $100 this year will cost $103 next year. If your salary doesn't increase proportionally, you can buy less with the same money.
How Inflation Affects Your Salary
Salary Below Inflation
If your salary increases slower than inflation, your purchasing power decreases. You'll be able to buy fewer goods and services over time, effectively making less money in real terms.
Salary Above Inflation
If your salary increases faster than inflation, you gain purchasing power. This means real wage growth and an improved standard of living over time.
Using CPI for Calculations
Our calculator uses Consumer Price Index (CPI) data, which measures the average change in prices paid by consumers for goods and services. CPI is published by:
- US: Bureau of Labor Statistics (BLS)
- UK: Office for National Statistics (ONS)
- Canada: Statistics Canada
- Other Countries: National statistical agencies
Real-World Example
Example: You earned $75,000 in 2020. In 2025, you need approximately $90,000to maintain the same purchasing power (assuming ~3-4% annual inflation).
If your 2025 salary is $85,000, you've effectively lost purchasing powercompared to 2020. If it's $95,000, you've gained purchasing power.
Inflation-Adjusted Salary
What your starting salary would be worth in the end year, adjusted for inflation. This shows the salary needed to maintain the same purchasing power.
Purchasing Power Change
The percentage change in your ability to buy goods and services. Negative values mean purchasing power decreased (you can buy less), positive values mean it increased (you can buy more).
Real Salary Growth
The difference between your inflation-adjusted salary and starting salary. This shows whether you've gained or lost purchasing power in dollar terms.
Cumulative Inflation
The total inflation rate from the start year to the end year. For example, 15% cumulative inflation means prices increased 15% over the period.