Salary raise calculator
A raise sounds great until inflation eats into it. This calculator converts a raise percentage — or a new salary figure — into the annual and monthly increase, then shows the real raise once inflation is accounted for. It is for anyone weighing a pay-rise offer, an annual review or a cost-of-living adjustment and wondering whether their purchasing power actually grew.
How it works
Your new salary is the current figure multiplied by 1 + raise% / 100 (or you
enter the new salary directly). The annual increase is new − current, the
monthly increase is that divided by 12, and the headline percentage is
increase ÷ current × 100.
The real raise is not simply the raise minus inflation. It divides the growth factors (the Fisher relationship):
real% = ( (1 + raise%/100) ÷ (1 + inflation%/100) − 1 ) × 100
That is why a 5% raise against 3% inflation works out to roughly 1.94% in real terms, not 2%.
Example
Current salary £35,000, a 5% raise, inflation 3%:
| Figure | Value |
|---|---|
| New salary | £36,750 |
| Annual increase | £1,750 |
| Monthly increase | ~£146 |
| Headline raise | 5% |
| Real raise (after inflation) | ~1.94% |
Your purchasing power grows by about £680 a year, not the full £1,750.
All figures are gross — before income tax and other deductions. Everything is calculated locally in your browser; your salary is never uploaded or stored.