CalcuPK

Salary Worth After Inflation Calculator

Real vs nominalEditable inflationPakistan-focusedEstimate only

A raise feels good — but did it actually beat inflation? Enter your old and new salary, the years between them, and an inflation rate to see your real, inflation-adjusted increase and how your purchasing power changed.

Tankhwah barhi to sahi, lekin mehngai ke baad asal mein faida hua ya nahi?

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Last updated: 1 July 2025

PKR
PKR
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Editable. Default uses a general CPI assumption; your personal inflation may differ.

Real value of your raise

Inflation-adjusted (real) raise-1.8%
Nominal raise10.0%
Total inflation over period12.0%
Old salary in today's moneyPKR 112,000
Salary needed to keep upPKR 112,000
Monthly purchasing power changePKR -2,000

Your inputs are calculated in your browser and are not stored by CalcuPK.

Your raise lagged inflation — real income down about 1.8%.

In today's money, your new salary is worth about PKR 98,214 in 2025 terms.

Formula & how it works

The calculator compounds inflation over the period and compares it to your raise:

  • Cumulative inflation = (1 + rate)^years
  • Salary needed to keep up = old salary × cumulative inflation
  • Real raise = new salary ÷ salary needed to keep up − 1

If the real raise is positive, you gained purchasing power; if negative, prices outran your pay despite the higher number.

Example calculations

Your salary increased by 10%, but if inflation was 18%, your real income fell by about 6.8% — you can buy less than before even though your salary is higher. Enter your own numbers above to see your exact figure.

Why a raise can still be a pay cut

In high-inflation years, a nominal increase can hide a real decline. This is the gap between the number on your payslip and what that money actually buys. Tracking the real value of your salary helps you negotiate, plan and decide whether to look for a role that keeps pace with the cost of living.

Personal inflation may differ from headline CPI based on rent, food, fuel and school fees, so the inflation rate here is editable. For a forward-looking view, see the inflation impact calculator.

Frequently asked questions

Compare your nominal raise (the headline percentage) with cumulative inflation over the same period. If your salary grew faster than prices, your real income rose; if it grew slower, your purchasing power fell even though the number on your payslip went up.

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