Is Your Pay Rise Real?
See how much of your nominal pay rise survives inflation — and whether your purchasing power actually grew.
Salary
Inflation & time
0 %15 %
- Real wage growth
- 1.94 %
- Interpretation
- Real pay rise
- Nominal wage growth
- 5.00 %
- Purchasing-power change
- €971
- Real salary (today's € value)
- €50,971
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Breakdown
| Category | Value |
|---|---|
| Nominal salary before | €50,000 |
| Nominal salary after | €52,500 |
| Inflation rate | 3 % |
| Time span | 1 years |
| Nominal wage growth | 5.00 % |
| Cumulative inflation | 3.00 % |
| Real salary (today's €) | €50,971 |
| Purchasing-power change | €971 |
| Real wage growth | 1.94 % |
Note: Calculated with the Fisher approximation: real change ≈ (1 + nominal) / (1 + inflation) − 1. The inflation rate is compounded geometrically over the chosen time span. Reference figure: Germany's official consumer price index (VPI). Personal inflation can deviate — those who spend more on rent or energy are typically hit harder.
Background
Calculate Real Income 2026: Nominal vs. Real, the Fisher Formula and Pay Negotiations
11 Min.