Salary Comparison
About this Salary Inflation Calculator
This salary inflation calculator converts an amount from one year into its equivalent value in another, using official consumer price index data. Enter the amount and the two years, and the result shows the equivalent figure, the total cumulative inflation between them, and the average annual rate that produces the same change.
How the calculation works
The equivalent value equals your original amount multiplied by the ending year price index, then divided by the starting year index. Because inflation compounds, the average annual rate is always lower than the total change divided by the number of years.
Reading the result correctly
Prices rising is not the same as money losing value
If prices rise 25%, money does not lose 25% of its value, it loses 20%. Purchasing power is the starting index divided by the ending index, which is not the mirror image of the inflation percentage.
Averages are not personal
A consumer price index measures a fixed national basket. Your own experience depends on what you buy and where you live, so your personal rate can differ from the published figure.