Inflation Pay Rise Calculator UK
Does my inflation pay rise beat the cost of living?
An inflation pay rise is only a real increase if it beats CPI. Enter your current salary, your proposed rise and today's inflation rate, and this salary inflation calculator for the UK shows your real-terms gain or loss plus the change in monthly take-home pay after tax and National Insurance for 2026/27.
Enter your current salary, your proposed pay rise and the current UK inflation rate (CPI or RPI) to see the real-terms change in your purchasing power.
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A pay rise only makes you better off in real terms if it outpaces inflation. If CPI is running at 3% and your rise is 2%, your buying power has actually fallen — even though your payslip shows more money.
This calculator strips out inflation so you can see the real value of a raise. For the after-tax cash impact, use our Pay Rise Calculator. To project inflation over several years, try the Inflation Impact Calculator.
Pay Rise Real-Terms Calculator
Find out if your pay rise actually beats inflation
Use your assumed inflation rate for this scenario. This tool compares gross salary before deductions; the pay rise calculator shows after-tax cash.
Real-Terms Pay Rise
+0.10%
Nominal Pay Rise
+3.0%
(£1,050/year)
Minus Inflation
-2.9%
(eroding value)
Purchasing Power Change
+£34
per year in real terms
Salary Comparison
Current Salary
Before any rise
£35,000
New Salary
Nominal (face value)
£36,050
Real Value of New Salary
What £36,050 buys compared to last year
£35,034
This is your new salary adjusted for 2.9% inflation
Monthly Impact
Gross salary changes before deductions
Monthly Nominal Increase
+£87.50
Gross increase before tax, NI, pension and loans
Monthly Real-Terms Change
+£2.83
Actual change in buying power
What Pay Rise Do You Need?
To match or beat 2.9% inflation
Break even
2.9%
(£1,015)
✓ Achieved+1% real gain
3.9%
(£1,375)
+2% real gain
5.0%
(£1,735)
+3% real gain
6.0%
(£2,095)
Frequently Asked Questions
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