Work out real wage growth instantly with clear inputs, formula shown and shareable results.
Real wage growth is nominal growth deflated by inflation, calculated as a ratio rather than a subtraction. The inflation-adjusted salary figure shows exactly what you would need to be earning to have stood still, which is the most useful comparison at review time.
Real growth
Real = (1 + Nominal growth) / (1 + Inflation) - 1
Inflation-adjusted salary
Adjusted = Previous salary x (1 + Inflation)
It is a reasonable approximation below about 5% but drifts as rates rise. The ratio form is always correct.
Headline consumer inflation for your country, or a city-specific index if available, since housing costs dominate personal inflation.