Nominal vs real raise
A "nominal" raise is just the percentage change in the currency amount. A "real" raise discounts inflation over the period — only that number tells you whether your purchasing power actually increased.
How the real gain is calculated
Formula used: real gain % = ((1 + nominal raise) ÷ (1 + inflation) − 1) × 100. For example, an 8% nominal raise with 5% inflation over the same period results in a real gain of about 2.86% — much lower than the apparent 8%.
How to use it
Enter your current salary and the agreed raise percentage, or directly the newly negotiated amount. If you know the cumulative inflation for the period, enter it to see the real gain.
Frequently asked questions
Which inflation index should I use?
Use whatever index applies to your situation — a national CPI, a sector-specific index, or whatever was agreed in your negotiation.
What shows up if I skip the inflation field?
Just the nominal difference and percentage, without adjusting for purchasing power.
Does a raise below inflation mean a real loss?
Yes. If the raise percentage is lower than inflation over the period, the calculated real gain will be negative, meaning lost purchasing power.