Personal Finance
Real raise after inflation
The exact gain in purchasing power after inflation is stripped out.
The Formula
Real = (1 + raise) / (1 + inflation) - 1
The exact gain in purchasing power after inflation is stripped out.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| i | Inflation rate | rate | Price growth over the same period. |
What Each Symbol Means
irate
Inflation rate
Price growth over the same period.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate a pay raise page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate A Pay Raise, filed under Finance. Every number the guide produces comes from substituting into this one line.