How it works
A raise only makes you better off if it grows faster than prices. The calculator uses the Consumer Price Index, the government's measure of what a typical basket of goods and services costs, to work out what your old pay is worth today.
Pay needed now = old pay × (CPI now ÷ CPI then)
Real raise = new pay ÷ pay needed now − 1
Worked example
You earned $60,000 in September 2025 and now earn $63,000: a 5.0% raise. Prices rose 3.7% over those 12 months, so you'd need $62,243 just to stand still. Your real raise is 1.2%, or about $757 a year of extra buying power.
Over a longer stretch the gap grows: prices are 30% higher than the 2020 average, so $60,000 then is like $78,113 today.
Things to know
- Your own inflation may differ. The CPI tracks an average basket. If rent or childcare is a big share of your spending, your personal inflation can be higher or lower.
- Compare after-tax pay for the full picture. A raise also nudges up your taxes; the paycheck calculator shows take-home pay.
- Use it when you negotiate. A cost-of-living adjustment that only matches inflation keeps you level; it isn't a raise in real terms.
Questions people ask
What raise do I need to keep up with inflation?
At least the inflation rate over the same period, 3.7% for the 12 months to September 2026. Anything above that is a real increase in what your pay can buy.
What was a dollar worth in an older year?
The inflation calculator converts any amount between any two years back to 1913.
Sources
- U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers (CPI-U), U.S. city average, all items, not seasonally adjusted (CUUR0000SA0)
- Federal Reserve Bank of St. Louis (FRED): CPIAUCNS series, used for the data
Reviewed September 26, 2026 by The Dollars World team. How we build and check our calculators · Our data and formulas. This is general information, not financial advice.