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Money · Salary vs inflation
Is My Salary Keeping Up with Inflation?
In real terms, have you had a pay rise or a disguised pay cut? Enter your salary then and now to see the real-terms change in pounds.
Instant result
Plain-English why
Copyable takeaway
What this means
No waffle. Just the number and how it was worked out.
Formula used
Real change = current salary − (original salary × (1 + avg inflation)^years).
Worked example
A salary that rose from £32,000 to £35,000 over three years of 7% average inflation has not kept pace — the real-terms value fell by around £1,700.
Common questions
Which inflation measure should I use?
CPI is the standard measure. RPI tends to run slightly higher and is used in some wage agreements. If your contract references a specific measure, use that.
Why does the real-terms figure matter?
Nominal pay rises can feel like progress while masking a fall in purchasing power. A salary that rises by 5% when inflation is 8% is effectively a 3% pay cut in what you can actually buy.
Plain-English summary
The result summary for this calculator will live here.
This section translates the result into a short, direct takeaway rather than leaving the page at a bare number.
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