Inflation‑Adjusted Salary Calculator 2025 – Real Pay vs Nominal Pay

Introduction

A 5% raise isn’t a real gain if inflation is 6%. This guide converts your salary into real (inflation‑adjusted) terms so you can negotiate better and plan your budget realistically.

---

Real vs Nominal Pay

• Nominal pay: the number on your paycheck
• Real pay: purchasing power after inflation
• Real change ≈ (1 + raise) ÷ (1 + inflation) − 1

---

How to Use the Calculator

1. Enter last year’s salary and this year’s salary/raise
2. Enter estimated CPI (YoY inflation)
3. See real % change and adjusted salary
4. Add city cost‑of‑living to compare offers across locations

---

Examples

• Raise 4% with inflation 3% → real gain ≈ 1%
• Raise 3% with inflation 5% → real loss ≈ −1.9%
• Move from City A to City B with 8% higher COL → need 8% higher pay to break even

---

Negotiation Tips

• Benchmark pay using market data; ask for COL plus merit raise
• Use total compensation: salary + bonus + equity + benefits
• Consider remote/hybrid flexibility value

---

Related Tools

• Take‑Home Pay Calculator 2025: /calculator
• Pay Frequency Converter 2025: /calculator
• Budget 50/30/20 vs Zero‑Based: /calculator/budget

---

CTA: Measure Your Real Raise

Enter your raise and CPI to see your true pay change and create a plan to protect purchasing power.