Income and prices
Personal Inflation and Real Income
You can get a raise and still feel squeezed if your own basket of costs rises faster than your pay. Comparing your raise to your personal inflation and real income helps you understand the gap without guessing. This is educational only, not advice or a forecast.
Published: December 30, 2025 · Updated: December 30, 2025 · By FinToolSuite Editorial
Disclaimer
- Educational purposes only, not financial advice.
- Examples are illustrative and simplified.
- Results depend on your inputs and assumptions and are not guaranteed.
- This page does not predict wages, taxes, or inflation.
- See the Privacy Policy for handling details.
Open the personal inflation basket calculator
Build your basket, set weights, and compare your rate to your pay change.
Quick answer
- Nominal pay is the number on paper.
- Real pay is what your pay can buy after costs rise.
- Personal inflation can differ from CPI.
- Use your own basket to estimate the pressure.
Nominal vs real in simple terms
Nominal is not adjusted for purchasing power. Real adjusts for price changes. For a full explainer, see the nominal vs real returns guide.
Where personal inflation fits
Personal inflation is your weighted basket. It can be higher or lower than averages. Build it with your categories and weights in the personal inflation basket calculator.
Simple example: raise vs personal inflation
Rough illustration only; ignores taxes and other changes.
| Scenario | Pay change (nominal) | Personal inflation | Real change (rough) |
|---|---|---|---|
| Raise above inflation | +6% | +3% | ≈ +3% real |
| Raise below inflation | +3% | +4% | ≈ -1% real |
This simple comparison shows why personal inflation matters when you interpret a raise. Use your own numbers and include taxes for a clearer picture.
Add taxes and net pay
Net pay matters because take home is what you spend. Taxes and deductions can change how a raise feels. Estimate take home with the Salary After Tax Calculator.
How to use FinToolSuite tools together
- Estimate take home pay using the salary tool.
- Build your personal inflation basket from your typical month.
- Compare your pay change to the personal inflation rate.
- Save scenarios for changes like rent or commute shifts.
Safety notes
- This is not a forecast.
- Your spending pattern can change.
- One-off events can distort a month.
- Use ranges and scenarios, not one perfect number.
- Keep personal details private; see the Privacy Policy.
FAQ preview
What is real income?
Pay adjusted for price changes; it shows what your pay can buy.
Why does my raise not feel like a raise?
If your costs rise faster than your pay, your buying power can feel smaller.
Is personal inflation the same as CPI?
No. Personal inflation uses your basket; CPI is an average basket.
Does the tool include taxes?
Use the salary tool for taxes; the basket calculator focuses on spending.
How do I estimate my take home pay?
Use the Salary After Tax Calculator with your inputs.
Can I export results?
Yes. Export tables and charts from the calculator.
Is this financial advice?
No. It is educational and depends on your inputs; outputs are estimates.