Method
How to calculate new annual salary
The inflation adjustment compares purchasing-power rates multiplicatively rather than simply subtracting percentages.
FORMULANew salary = current salary × (1 + raise); real change = (1 + raise) ÷ (1 + inflation) − 1
Worked example
Salary raise calculator example
A 6% raise on $80,000 adds $4,800 in nominal annual salary before inflation adjustment.
Change one assumption at a time to see what drives the result. The output is an estimate, not a quote, forecast or recommendation.
FAQ
Salary raise calculator FAQ
Why not subtract inflation from the raise?
Subtraction is an approximation; the ratio method measures the exact relative change.
Does this estimate take-home pay?
No. Taxes, deductions, benefits and bonus changes are excluded.
Can I compare hourly pay?
Divide annual salary by expected paid working hours, keeping both scenarios consistent.