Calculate the salary needed to maintain purchasing power after relocation or inflation.
Location and inflation adjustments compound rather than add, so both must be applied multiplicatively. An offer that appears to be a rise can represent a real cut once both are accounted for. Nominal rises below inflation are real pay cuts, which is why the real change figure rather than the headline increase is the one that matters.
Cost of Living Adjustment
Required salary = current × (new index ÷ current index) × (1 + inflation)
Required salary = current × (new index ÷ current index) × (1 + inflation) Location and inflation adjustments compound rather than add, so both must be applied multiplicatively. An offer that appears to be a rise can represent a real cut once both are accounted for.
Nominal rises below inflation are real pay cuts, which is why the real change figure rather than the headline increase is the one that matters.
This calculator takes 5 inputs: Current salary, Current location cost index, New location cost index, Inflation since the last rise, Salary offered. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.