Did My Raise Beat Inflation This Year?
Turn a raise into real monthly buying power.
Start here
If you ever wondered why a raise feels small, you are not alone.
The belief vs the reality
The common belief is any raise means you are ahead. The reality is inflation and taxes can erase the monthly gain.
Translate it into monthly numbers
- Convert the raise into monthly take-home.
- Adjust that number for inflation in monthly terms.
- Compare the old and new monthly reality.
Mental model
New take-home minus old take-home minus inflation loss equals real monthly change.
Moment of clarity
Here is what actually matters: the real monthly change after inflation.
What to do next
Check your real monthly change after inflation, not just the percent.
Related calculators
This is where guessing stops and numbers start.
Key sections in this guide
Convert the raise to monthly take-home
- Use net pay so the math reflects what you can spend.
- Monthly numbers are easier to compare to bills.
Adjust for inflation in monthly terms
- Inflation reduces buying power even if your paycheck is larger.
Compare old and new monthly reality
- The difference tells you if the raise actually improved the month.
Replace guesses with real numbers
- Use your actual salary numbers to test the change.
FAQ
Should I compare gross or net pay?
Net pay is the monthly cash you can actually use, so it is the better comparison.
Is inflation the same for everyone?
No. Your personal inflation depends on your spending mix and location.
Why does a raise feel smaller than expected?
Taxes and price increases can absorb most of the extra dollars.
How do taxes change the real raise?
A portion of the raise goes to taxes, so take-home grows less than the headline amount.