Cost of Living Raise Calculator

How it is calculated

The tool scales your salary by the inflation rate: new salary = current salary × (1 + inflation % ÷ 100), raise = new salary − current salary and monthly raise = raise ÷ 12. Because it divides by 12, the salary is expected as a yearly figure; the inflation rate is a plain percentage such as 4.2. The raise keeps the same purchasing power only if your own price increases match the inflation rate you enter, so use the rate for the period since your last adjustment. Negative inputs give no result, and an inflation rate of 0 returns the same salary. The tool works on a single year's rate and does not compound several years.

Common mistakes

• Entering a monthly salary and reading the "monthly raise" as if it were yearly. The monthly figure is the yearly raise divided by 12, so the salary must be annual.
• Entering the rate as 0.042. The field is a percentage, so 4.2 means 4.2%.
• Using a general headline inflation figure when your own costs (rent, food, fuel) rose faster or slower than the average.
• Applying a single year's rate to several years of missed raises. For multiple years the increases compound, so run the tool one year at a time or use a compounding calculator.
• Treating the new salary as take-home pay; the figures are gross and tax brackets may take part of the raise.