How inflation-adjusted salary is calculated
Example: a $50,000 salary in 2015 equals $50,000 × 321.943 ÷ 237.017 = $67,915.59 in 2025 dollars, because prices rose 35.8%. If you earn $65,000 in 2025, your pay rose 30% on paper but you can buy 4.29% less than in 2015, about $2,916 a year of lost buying power.
The calculator uses the yearly average Consumer Price Index for All Urban Consumers (CPI-U) from the Bureau of Labor Statistics. For 2026 it uses the latest monthly figure, October 2026.
Using this when you ask for a raise
A raise that only matches inflation keeps your buying power the same; anything below it is a pay cut in real terms. Knowing the number helps when you negotiate: "my pay has fallen 4% behind prices since I started" is a concrete case. Your personal inflation can differ from CPI, since rent, childcare and insurance have risen faster than the average basket in many places.
Frequently asked questions
How do I adjust my salary for inflation?
Multiply the old salary by the CPI for the later year and divide by the CPI for the earlier year. $50,000 in 2015 is about $67,900 in 2025.
What raise do I need to keep up with inflation?
At least the inflation rate for the year, which has run 2.5% to 3% recently. Over several years, compare your total raise with total inflation over the same period.
Is a cost-of-living raise the same as a merit raise?
No. A cost-of-living adjustment (COLA) is meant to match inflation so your buying power stays the same. A merit raise is extra pay for performance on top of that.
Was this calculator helpful?