Salary Increment vs Inflation Calculator

See your real salary hike after adjusting for inflation.

Last updated: 21 Aug 2026

Quick answer

Your real hike = ((1 + hike%) ÷ (1 + inflation%) − 1) × 100. For example, a 10% raise with 6% inflation is a real increase of about 3.8%. A negative result means your raise did not beat inflation. Enter your hike and inflation above.

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See whether your raise actually improved your buying power: real hike = ((1 + hike) ÷ (1 + inflation) − 1) × 100. A negative value means inflation outpaced your increment.

How to calculate your real salary hike

  1. 1 Enter your salary hike percentage.
  2. 2 Enter the inflation rate.
  3. 3 We show your inflation-adjusted (real) hike.

Frequently asked questions

How do I know if my raise beats inflation?
Compare your hike to inflation — the real hike formula shows the net gain in buying power; negative means it did not beat inflation.
Why not just subtract inflation from the hike?
Subtracting is a rough approximation; dividing (1+hike) by (1+inflation) is the accurate way.
What inflation figure should I use?
Use retail (CPI) inflation, often around 5–6% in India, or your own cost-of-living increase.

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