Gap estimate explained
Gap Estimate Explained Adjusted Income vs Inflated Spend
Gap estimate explained: it compares your inflation-adjusted income to your inflated spending from the categories you entered. It is a simplified, directional view to help you compare scenarios, not a prediction.
Published: January 7, 2026 · Updated: January 7, 2026 · By FinToolSuite Editorial
Check your gap estimate
Enter your numbers to see adjusted income versus inflated spend.
Disclaimer
- Educational only. Gap is a simplified estimate, not a guarantee.
- Results depend on your inputs and assumptions.
- See the Privacy Policy for handling details.
What the gap estimate is
The gap estimate is adjusted income minus inflated spend for the categories you entered. Positive means a directional surplus; negative means pressure. It uses your personal inflation, not a broad CPI.
What it includes and excludes
- Includes: your income change, your categories, and their inflation.
- Excludes: taxes, benefits, debt terms, one-off shocks, or items you did not list.
- Purpose: give a quick, directional view of pressure points.
Illustrative example
If income rises from $70,000 to $72,100 (+3%) and personal inflation is 5%, adjusted income is roughly $68,666. If inflated spend on your listed categories totals $69,500, the gap is about -$834, showing pressure. Directional only.
How to use it
Compare scenarios, not single runs. Save a baseline, change one lever (like a hot category), then compare gap direction. Use the scenario comparison to keep changes clear. Read limitations before making any decisions.
See your gap estimate
Enter your numbers in the tool and compare scenarios side by side.
FAQs
What is the gap estimate? ▼
Adjusted income minus inflated spend for the categories you entered, showing a directional surplus or shortfall.
What does it include? ▼
Your income change, your categories, and their inflation. It uses your personal inflation index.
What is not covered? ▼
Taxes, benefits, debt terms, or shocks you did not list. It is a simplified view, not a full budget model.
Is it a prediction? ▼
No. It is directional and depends on your inputs and assumptions. Rerun when things change.
How do I compare scenarios? ▼
Save a baseline, change one category, then compare the gap in the scenario view to see which lever moves the result most.
Is this advice? ▼
No. It is educational and simplified. Results are not guaranteed.