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Cost of Living Raise 2017 Calculator

Reviewed by Calculator Editorial Team

This calculator helps you determine how much your salary raise in 2017 actually improved your purchasing power, accounting for inflation and changes in the cost of living. Simply enter your pre-raise salary, post-raise salary, and select the appropriate year to see the real value of your raise.

How to Use This Calculator

Using this calculator is straightforward:

  1. Enter your salary before the raise in the "Pre-raise salary" field.
  2. Enter your salary after the raise in the "Post-raise salary" field.
  3. Select "2017" from the year dropdown.
  4. Click "Calculate" to see your results.
  5. Review the results and interpretation guidance below.

The calculator will show you both the absolute value of your raise and the real value of that raise after accounting for inflation.

Formula Used

The calculation is based on the following formula:

Real Value of Raise = (Post-raise Salary - Pre-raise Salary) / (1 + Inflation Rate)

Where the inflation rate is based on historical data for the selected year. For 2017, we use the Consumer Price Index (CPI) data from the Bureau of Labor Statistics.

Worked Example

Let's say you had a salary of $50,000 before a raise and $55,000 after a raise in 2017. The inflation rate for 2017 was approximately 1.8%.

Using the formula:

Real Value of Raise = ($55,000 - $50,000) / (1 + 0.018) Real Value of Raise = $5,000 / 1.018 Real Value of Raise ≈ $4,892

This means your raise of $5,000 was worth approximately $4,892 in real terms, accounting for inflation.

Interpreting Results

The calculator provides two key pieces of information:

  1. Absolute Raise: This is the simple difference between your post-raise and pre-raise salary.
  2. Real Value of Raise: This is the adjusted value of your raise after accounting for inflation.

If the real value is less than the absolute raise, it means your purchasing power decreased due to inflation. If it's higher, your purchasing power increased.

Note: This calculator uses historical inflation data. For current raises, use a calculator with up-to-date inflation rates.

FAQ

Why is the real value of my raise different from the absolute raise?
The real value accounts for inflation, which reduces the purchasing power of money over time. If inflation is high, the real value will be less than the absolute raise.
Can I use this calculator for raises in years other than 2017?
This calculator specifically uses 2017 inflation data. For other years, you would need to use a calculator with the appropriate inflation rate for that year.
What if I don't know my exact pre-raise salary?
You can estimate your pre-raise salary based on your knowledge of your compensation history or industry standards for similar positions.
Is this calculator accurate for all types of raises?
This calculator provides a good estimate for standard salary raises. For bonuses, commissions, or other types of compensation changes, the calculation may need adjustment.
Where does the inflation data come from?
The inflation data is based on the Consumer Price Index (CPI) published by the Bureau of Labor Statistics, which is the official source for U.S. inflation measurements.