Hourly or Salary Inflation Calculator with Built-in Historical Data Chart

Salary Inflation Calculator Sign

This hourly wage and salary inflation calculator will estimate the pay raise (cost of living adjustment) needed during the upcoming year to keep pace with inflation.

Or, if you've already received your pay raise and you want to find out what the percentage increase was, I've included a pay increase percentage calculator in the Learn section.

Finally, the income inflation calculator will also take your current pay and create a year-to-year comparison chart showing your pay adjusted for inflation dating back to the year you were 16 years old!

If you need to calculate what a past, present, or future sum of money was or will be worth at another point in time, please refer to the CPI Calculator.

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Salary Inflation Calculator

Special Instructions

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Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Salary:Annual salary:Current annual salary:Current annual salary:

Current annual salary:

Enter your current annual salary. If you're not sure what your annual income is, expand the description in this row to convert your non-annual wage into an annual salary.

Or hourly wage:Or hourly wage:Or hourly wage:Or hourly wage:

Hourly wage:

If you would like to see the raise needed with respect to your hourly wage, enter the hourly wage on this line and leave the salary field blank.

Inflate rate:Inflation rate:Expected inflation rate:Expected inflation rate:

Expected inflation rate:

Enter the expected inflation rate for the next year (without the percent sign). The average annual inflation rate over the past 20 years (2004-2023) is roughly 2.56%.

Age (optional):Current age (optional):Current age (optional):Current age (optional):

Current age:

Enter your current age. The calculator will use your age to show what your current salary was equal to in previous years, dating back to when you were 16 years old.

COL sal/wage:Salary/wage needed:Salary/wage needed to keep pace:Salary/wage needed to keep pace with inflation:

Salary/wage needed to keep pace with inflation:

This is what your annual salary or hourly wage will need to increase to next year in order to keep pace with inflation.

COL raise:Raise needed:Raise needed to keep pace:Raise needed to keep pace with inflation:

Raise needed to keep pace with inflation:

This is the difference between your current salary or hourly wage and next year's inflation-adjusted salary or wage.

If you would like to save the current entries to the secure online database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Help and Tools


How to calculate pay adjusted for inflation, and what to watch out for besides rising prices.

How to Calculate Pay Increase Based on Inflation

The following are the steps to calculate a pay increase based on inflation.

Step #1: Get the 12-month rate of inflation from the Consumer Price Index (CPI). As of this writing, the 2023 12-month inflation rate was 4.1%.

Step #2: Convert the percentage to a decimal by dividing the rate by 100 (4.1% = 4.1 ÷ 100 = 0.041).

Step #3: Add one to the result from Step #2 (1 + 0.041 = 1.041).

Step #4: Multiply your current pay by the result from Step #3, which will give you your inflation-adjusted salary.

Step #5: Subtract your current pay from the result in Step #4, which will give you the CPI increase amount.

Example: If your current annual salary is $50,000, and the 12-month inflation rate is 4.1%, your salary adjusted for inflation would be $52,050 (50,000 × 1.041 = 52,050), which would make the CPI increase amount $2,050 ($52,050 − $50,000 = $2,050).

So your cost of living pay increase for 2023 should have been $2,050. Anything less would yield a net loss of purchasing power, which might only be the tip of the iceberg (see Real Inflation Rate further down the page).

Actual Pay Increase Percentage Calculator

If you've already received your raise, use the following mini calculator to calculate what percent your pay increased by (numeric characters only).

Pay Increase Percentage calculator
Old pay amount ($):
New pay amount ($):
Percent increase:4.10%

The Real Rate of Inflation

If you've ever felt like you're working harder and harder only to be able to afford less and less, you might consider the possibility that the government's inflation rate is being manipulated down to keep you thinking you can stay ahead of it.

While the government reports inflation to be 1% to 2% in most years, non-government entities estimate the real inflation rate to be 7% to 13%. Or, as in the case of 2023, when the government reported 4.1% inflation, the real inflation rate was estimated to be 7% - 15%.

In 2023, if you went to buy a house, pay your newly increased rent payment, buy lumber, book a flight, book a hotel room, fill up your gas tank, pay your heating bill, or buy a dozen eggs, it didn't take a rocket scientist to figure out that the inflation rate was much higher than the stated 4.1%.

So why would the government underreport the inflation rate? Some suggest it's because the government knows that we would revolt if they were to raise our income taxes to fund their bogus wars and disincentivizing entitlement programs. Others, like the author of the following Business Insider article suggest:

If people knew the actual inflation rate, it would implode the entire system

In either case, ever since the US government stopped using gold to back its paper money (1971), they've been free to increase the money supply whenever they wanted. This effectively allows the government to secretly tax us by forcing us to pay higher purchasing costs due to the inflation they caused.

And then what does the government do to offset the damage their printing press creates? They raise interest rates to lower the inflation rate. And who pays for that? We do, in the form of the higher costs we have to pay to borrow the money we need to buy what we can no longer afford to pay cash for due to inflation.

Of course, since the poor and middle class don't have access to investments that can yield returns higher than the real inflation rate, the rich get richer while the poor and middle class get poorer.

Wouldn't it be nice if there was a form of money that the government could not deflate? One that forced our government to live within their means and to use creative problem solving like we have to do?

Well, I was recently shocked to learn there is such money! And it's been quietly growing in support and adoption since 2009 (over 100 million adopters and growing).

If you haven't guessed what it is and would like to find out more, check out my video/text on my About Me page:

My Story, Part 5: The Biggest Aha! Moment of my Life

Hint: Will you choose the blue pill or the orange pill?

What or Who is Eating Away at Your Buying Power?

I often hear people complain about how inflation is forcing them to earn higher and higher incomes to maintain their current lifestyles.

Many of these same people make big-ticket-item buying decisions faster than I decide what I'm going to wear to work (I work at home!).

Plus, between mortgage, loan, and credit card payments, most spend hundreds, even thousands of dollars a month on interest charges.

When you spend a dollar to pay interest charges, what do you have to show for it?

The item you purchased on credit?

No! Because had you purchased the item with cash, you wouldn't have incurred any interest cost at all.

Therefore, you have nothing to show for the dollar spent (actually less than nothing if you consider the lost interest earnings).

Does Your Bank Have Carry-Out Personnel?

Pay a visit to your local lending institution (usually recognizable by being one of the nicest buildings in town).

When you enter the building, try to find a physical product to purchase that isn't just a signed document.

Can you find an assembly line churning out tangible products?

Can you find a Lay-Away counter?

Are employees hanging around the front door to help you carry out your purchases?

Of course not.

Lending institutions rent the use of your money for a small fee and then rent it back to you at a much higher fee. That's it. That's all they do!

The truth of the matter is that spending a dollar in interest only leaves you with one less dollar to spend (or invest). In other words, that dollar's buying power was reduced by 100%!

You worked just as hard for the interest dollar as the other dollars you earned, yet you received nothing in return for it. Doesn't that bother you? As you can tell, it bothers me ... a lot!

The buying power bottom line? If you are one of those people who fail to fully investigate buying alternatives before you make your buying decisions, or you are paying hundreds or thousands of dollars in monthly interest charges, I'm sorry, but your spending and borrowing are your buying power's worst enemy, not inflation.

Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.