Salary Hike Calculator

Overview

Find out what your salary raise is really worth once inflation is factored in — your "real" increase in purchasing power, not just the number on paper.

Formula

New Salary = Current Salary × (1 + Hike %)
Real Increase % = [ (1 + Hike %) / (1 + Inflation %) − 1 ] × 100

How to use this calculator

1. Enter your current salary and the hike percentage you received (or are negotiating).
2. Enter the expected annual inflation rate.
3. See your new salary and the real, inflation-adjusted increase in your purchasing power.

Note

A raise that's lower than inflation means your purchasing power actually shrinks, even though your salary number goes up. This calculator uses a single inflation rate for simplicity — actual inflation varies by category of spending and by year.