# Pay Raise & Real Purchasing Power Calculator

Compare a raise or job offer after inflation, convert salary periods, and check whether longer hours erase your hourly gain.

> Canonical page: https://elysiatools.com/en/tools/pay-raise-real-purchasing-power-calculator

- **Category:** Finance

- **Keywords:** Current salary, Raise (%), Real annual change, Real hourly change

## Overview

Compare gross fixed pay before and after a raise using manual inflation for the same comparison interval. Convert hourly, paid-week, monthly and annual amounts, including different work schedules. Real growth = (new annual / old annual) / (1 + inflation) − 1. Percentage mode changes the annualized package; entering a new hourly/weekly rate uses the new schedule. No tax, exchange rates, bonuses or automatic CPI. Download a Markdown report.

## Inputs

- **Current salary** (number)
- **Current pay period** (select)
- **Comparison mode** (select)
- **Raise (%)** (number)
- **New salary** (number)
- **New pay period** (select)
- **Inflation over comparison period (%)** (number)
- **Hours per week (before)** (number)
- **Paid weeks per year (before)** (number)
- **Use a different work schedule** (checkbox)
- **Hours per week (after)** (number)
- **Paid weeks per year (after)** (number)
- **Currency** (select)

## When to use

- Evaluating an annual merit raise against recent cumulative consumer inflation.
- Comparing a new job offer with higher gross pay that requires more weekly hours.
- Converting compensation between hourly wages and annual salaries with differing schedules.

## How it works

- Enter your current gross earnings, pay frequency, and standard schedule of weekly hours and paid weeks per year.
- Specify your raise as a percentage or input a new compensation amount with an optional revised work schedule.
- Input the cumulative inflation rate over the relevant comparison period.
- Review standardized breakdowns across pay periods, real purchasing power growth, and hourly earnings changes.

## Use cases

- Assessing annual compensation reviews to verify whether a salary bump outpaces cost-of-living increases.
- Vetting external job offers that feature higher nominal compensation but demand increased weekly commitments.
- Transitioning from a salaried role to an hourly contracting position with varying billable weeks.

## Frequently asked questions

### How is real purchasing power growth calculated?

It is calculated as ((New Annual Pay / Old Annual Pay) / (1 + Inflation Rate)) − 1.

### Does this tool account for income taxes or payroll deductions?

No, it evaluates gross fixed base pay and does not calculate income tax brackets or payroll withholdings.

### Does the calculator pull CPI inflation data automatically?

No, you must manually provide the cumulative inflation percentage for the matching period.

### How does entering a new hourly wage impact the annual calculation?

If you input a new hourly rate alongside an updated schedule, the annual figure is derived from the new hours and weeks.

### Can I download my comparison results?

Yes, you can generate and download a Markdown report summarizing your inputs and calculated comparisons.

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