The method
How it is worked out
Real rise = (1 + nominal) ÷ (1 + inflation)^years − 1
- marginal rate
- Tax and contributions on the last pound earned, not your average rate
Real Pay Rise Calculator
See whether your pay rise beats inflation and what your salary is worth in real terms compared with a past year. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- Your own inflationRent and childcare may have risen faster than the index.
- ThresholdsA rise can cross a tax band or lose a benefit.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Real Pay Rise Calculator
See whether a pay rise beats inflation and what your salary is worth in real terms.
How it works and an example to tryShow less
How to use the result
Real change is one plus the nominal rise divided by one plus cumulative inflation, minus one. The salary needed to keep pace grows the old salary by inflation.
Example to try
£48,000 to £50,000 (4.2%) against 3.4% inflation is a 0.7% real rise; after 32% marginal deductions it adds about £113 a month.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Employees preparing for a review and managers setting pay budgets.
Mistakes worth avoiding
- Celebrating a rise below inflation.
- Using average tax rate instead of marginal for the extra.
- Ignoring that childcare or rent may have risen faster than the index.
Questions
What does the Real Pay Rise Calculator do?
See whether your pay rise beats inflation and what your salary is worth in real terms compared with a past year.
How should I use the result?
Real change is one plus the nominal rise divided by one plus cumulative inflation, minus one. The salary needed to keep pace grows the old salary by inflation.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a real pay rise calculator?
Celebrating a rise below inflation. Using average tax rate instead of marginal for the extra. Ignoring that childcare or rent may have risen faster than the index.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.