Is Your Raise Actually a Raise?
Real Raise Calculator — After Inflation and Taxes
What this calculator does
A 4% raise feels good until inflation and taxes eat most of it. This calculator shows your real raise after both.
The math, with a worked example
Real raise = nominal raise − inflation − (nominal raise × marginal tax rate). Take-home multiplier = (1 + nominal raise) × (1 − tax rate) ÷ (1 + inflation). A 4% raise with 3% inflation and a 22% marginal tax rate is worth 3.12% after tax, so the real raise is 0.12% once inflation is subtracted.
Why this matters
A raise number is 3 illusions deep: taxes take their marginal cut, inflation eats the base, and what's left is the real raise. 4% nominal at 22% marginal tax and 3% inflation nets 0.12% — effectively a rounding error dressed as a win.
Methodology and transparency
Real raise = nominal raise − inflation − (nominal raise × marginal tax rate); the multiplier form compounds the same 3 factors. Marginal rate is correct here (the raise stacks on top of existing income), but the inflation input is the volatile one — it's a national average, and your personal inflation runs higher if rent or medical costs dominate your spending. Everything runs in your browser; no data is sent or stored.
Last reviewed: 2026-08-08
Common questions
Why does the tax rate matter?
Raises are taxed at your marginal rate, not your average rate. A higher bracket eats more of the new money.
What if inflation is higher than my raise?
Then your buying power shrinks. You effectively took a pay cut.
How do I negotiate a real raise?
Ask for a raise that beats inflation plus your marginal tax rate, or negotiate non-taxable benefits.