Free tool · runs in your browser
Will your salary still buy the same basket later?
Enter a current salary, an assumed inflation rate and a number of years. The calculator shows what the same purchasing power would cost in the future, what the unchanged salary would be worth in today's terms, and the raise required just to stand still.
Assumes a constant inflation rate. Real inflation varies by category and location; taxes and pay changes are excluded. Estimate only.
Future cost and real value
Two questions hide inside an inflation calculation. The first is what today's salary must become to buy the same basket later; that is the future cost line, which grows the salary by the inflation rate for every year. The second is what today's salary will buy later if it stays fixed; that is the real value line, which divides the salary by the same factor.
The gap between the salary and the future cost is the shortfall. The difference between the salary and its real value is the purchasing-power loss. Both describe the same erosion from different angles.
The raise needed to stand still
A raise that merely matches inflation keeps purchasing power constant; it is not a real increase. The required raise percentage compounds rather than adds: at 3% inflation for ten years, prices rise by about 34%, not 30%. That is why the raise needed to stand still grows faster than intuition suggests.
If a nominal raise falls below that line, the salary is effectively a cut. Comparing your raise with this figure is a quick reality check, though real households experience inflation through their own mix of housing, food, transport and services.
One rate cannot describe every household
Official inflation indexes weight a broad basket, and no two households spend alike. Renters, homeowners, commuters and families with children each face different price paths, and regional differences can be large. A single rate is a simplification that keeps the arithmetic readable.
The model also assumes salary and prices move in smooth steps once a year, ignores taxes and promotions, and says nothing about career changes. Use it to frame a conversation about pay and purchasing power, not as a prediction or financial advice. A range of inflation assumptions usually tells a more honest story than one number.
Frequently asked questions
Should I use official CPI or my own inflation rate?
CPI is a broad average. A personal rate based on your own rent, food, transport and health costs is more relevant. The calculator accepts any rate you choose.
Does a cost-of-living raise always keep pace?
Only if it matches your personal inflation rate. Taxes can also take a share of the raise, so the net gain in purchasing power may be smaller.
Why does the required raise exceed inflation times the years?
Because inflation compounds. Each year's price increase applies to the previous year's higher level, so the total is a product rather than a simple sum.
Is the future cost the salary I should ask for?
It is the amount that preserves purchasing power before tax. A negotiation also depends on market rates, scope and benefits, so use it as a reference point.