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Real Wage

Shows whether your pay rise actually beats inflation — the real change in your purchasing power.

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Ergebnis

So funktioniert's

1Werte eingeben
2Wir wenden die Formel an
3Ergebnis ansehen

So funktioniert's

  • Enter Current salary.
  • Enter Raise %.
  • Enter Inflation %.

Die Formel

Real change = (1 + raise) ÷ (1 + inflation) − 1.

Rechenbeispiel

A 5% raise during 3% inflation is a real gain of only about 1.9%.

About this calculator

Nominal pay is what your contract says; real pay is what it buys. In years of high inflation the gap between the two decides whether a raise is a genuine improvement or a quiet pay cut dressed as good news.

The formula divides growth in pay by growth in prices rather than subtracting them — at high rates the difference matters. A 10% raise under 8% inflation is a 1.85% real gain, not 2%. Use this before salary negotiations: asking for 'inflation plus X' is a stronger, fairer anchor.

Häufige Fragen

Why is my raise worth less than it looks?

Prices rose too. Only the part of the raise above inflation increases what you can actually buy.

What if inflation is higher than my raise?

Your real wage falls even though the number on your payslip grew.

Which inflation figure should I use?

The latest annual CPI for your country, or your personal basket if you track it.

Tipps

  • Compare money across years in real terms.
  • Hold assets that grow at or above inflation.
  • Cash quietly loses value when prices rise.

Begriffe

CPI
A price index for a basket of goods.
Real return
Return after inflation.
Purchasing power
What a sum can actually buy.