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Salary Inflation Calculator

Use values from the same period and currency. Fees and taxes apply only where explicitly included in inputs.

Use values from the same period and currency. Fees and taxes apply only where explicitly included in inputs.

Your workbenchInputs are not stored

Result

Enter your values and run the tool to see your result.

What this tool does

Shows two things at once: the salary needed to keep the same purchasing power as prices rise, and how much today’s salary will be worth in future terms.

How to use it

  1. Enter your current salary.
  2. Enter the average annual inflation rate as a percentage.
  3. Enter the number of years.
  4. Run it to get both the required salary and the purchasing-power equivalent.

Worked example

A 50,000 salary at 3% over five years needs about 57,964 to hold purchasing power, while today’s salary is worth about 43,130 in five-year terms.

Calculation method

Salary maintaining purchasing powersalary*(1+inflation/100)^years
Purchasing power of unchanged salarysalary/(1+inflation/100)^years

Frequently asked questions

Why are the two numbers different?
They run in opposite directions. The required salary inflates to future money; the purchasing-power figure discounts the same salary to today’s value. Both use the same rate.
Where do I get an inflation rate?
Use the consumer price index growth published by your statistics office or central bank. A historical average is a starting point, not a forecast.

What this tool does not cover

A single rate compounded over time. Differences between spending categories, tax-bracket changes, and promotions or allowance changes are not reflected.

References