Salary Inflation Calculator

Formula

To calculate the inflation-adjusted salary:

$\text{Inflation Adjusted Salary} = \text{Initial Salary} \times (1 + \text{Inflation Rate})$

To evaluate your actualized earnings:

$\text{Actualized Earnings} = \text{New Salary} - \text{Inflation Adjusted Salary}$

Definition

The salary inflation calculator helps you determine if your salary increase is keeping up with inflation, ensuring that your purchasing power remains constant.

Example

Consider the following example:

Initial Monthly Salary (November 2017): $3,000
New Monthly Salary (November 2018): $3,200
Year-on-Year Inflation Rate (November 2018): 2.2%

To find the inflation-adjusted salary:

$\text{Inflation Adjusted Salary} = 3000 \times (1 + 0.022) = 3066$

To evaluate the actualized earnings:

$\text{Actualized Earnings} = 3200 - 3066 = 134$