Real Raise Calculator
Find out whether your raise actually beat inflation — your real, inflation-adjusted pay increase, using live government data.
Your raise
New salary: $72,800
Prefilled with live CPI inflation (4.2%, May 2026). Edit if you like.
Your real (inflation-adjusted) raise
Inflation outpaced your raise — a real pay cut
New salary
before inflation
In today's dollars
real purchasing power
What it means
After 4.2% inflation, your 4% raise actually loses about $134 of buying power — you can buy less than before. It also beat the 3.4% average US wage growth by 0.6 points.
How it works
A raise only makes you better off if it outpaces rising prices. We divide your new pay by inflation to express it in last year's dollars, then compare it to what you earned before. The difference is your real raise — what actually changed in your buying power — and we also stack it against the average US wage growth so you can see how your raise compares to everyone else's.
Real (inflation-adjusted) raise
real raise = (1 + raise%) ÷ (1 + inflation%) − 1
- raise%
- your pay increase
- inflation%
- change in prices over the same period (CPI)
Worked example
- Raise: 4%
- Inflation: 3%
- (1.04 ÷ 1.03) − 1
Real raise ≈ +0.97% — your buying power grew, but only barely.
Good to know
- A raise below the inflation rate is a real pay cut, even though your paycheck is bigger.
- Official CPI is an average basket; your personal inflation (rent, childcare, gas) may be higher — override the inflation field to test it.
- Negotiating? Beating both inflation and the average wage growth is the bar for a genuinely strong raise.
Related Calculators
Frequently Asked Questions
How do I know if my raise beat inflation?
Compare your raise percentage to the inflation rate. If your raise is higher than inflation, your buying power grew (a real raise). If it is lower, you can actually afford less than before — a real pay cut, even though the number on your paycheck went up.
How is a real raise calculated?
Real raise = (1 + your raise %) ÷ (1 + inflation %) − 1. For example, a 4% raise during 3% inflation is (1.04 ÷ 1.03) − 1 ≈ 0.97% — your real raise is just under 1%.
What inflation rate should I use?
This calculator prefills the latest official CPI inflation rate (4.2% as of May 2026) from the U.S. Bureau of Labor Statistics, but you can override it — for instance with the inflation you personally experience on rent, food, or gas.
What is a good raise?
A "good" raise beats both inflation and the typical raise. Right now US wages are growing about 3.4% a year on average, against 4.2% inflation, so a raise above inflation that also exceeds the average wage growth is genuinely strong.
Why did I get a raise but feel poorer?
Because prices rose too. If inflation was higher than your raise, your nominal pay went up but your real purchasing power went down — that gap is exactly what this calculator quantifies.