Is your raise keeping up with inflation? Calculate your real purchasing power and see what you'd need to earn to stay even.
For future projection
In 2020 purchasing power
To match 2020 purchasing power
| Starting Salary (2020) | $60,000 |
| Current Salary (2025) | $72,000 |
| Nominal Growth | 20.0% |
| Cumulative Inflation | 24.7% |
| Avg Annual Inflation | 4.5% |
| Real Salary (Inflation-Adjusted) | $57,761 |
| Real Growth | -3.7% |
| Salary Needed to Keep Up | $74,791 |
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Real Salary = Current Salary × (Start CPI ÷ Current CPI)
Uses Bureau of Labor Statistics CPI-U annual averages. Projections use your raise rate vs historical average inflation.
It's your salary expressed in real purchasing power rather than nominal dollars. A $50K salary in 2015 bought more than $50K in 2025 due to inflation.
Cumulative US inflation from 2020-2024 was ~21.4%. A salary would need to increase by that amount just to maintain the same purchasing power.
It depends on inflation. If inflation is 2%, a 3% raise gives you a 1% real increase. If inflation is 4%, it's a 1% real pay cut.
It uses the Bureau of Labor Statistics CPI-U (All Urban Consumers) annual averages, the most widely used inflation measure.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.