Question 1

What's the difference between nominal and real-terms pay?

Accepted Answer

Nominal is the number on your payslip. Real-terms is that number adjusted for inflation — what your money can actually buy. If your salary went up 4% but prices went up 6%, your nominal rise was 4% but your real rise was −1.9%. The real-terms figure is the one that matters for your standard of living.

Question 2

How do I find my European HICP rate?

Accepted Answer

Eurostat publishes the Harmonised Index of Consumer Prices (HICP) monthly at ec.europa.eu/eurostat. Pick the country-specific figure — inflation diverges significantly across member states (German HICP is often below French, which is typically below Italian or Spanish). As of mid-2025, the eurozone aggregate sits around 2.0–2.5%, but individual countries range 1.5–4%.

Question 3

Is a 4% rise a real rise?

Accepted Answer

Only if your country's HICP is under 4%. During 2022's inflation peak, a 4% rise in most eurozone countries meant a 3–6% real-terms cut. In 2025 most countries are back near target, so 4% is a genuine 1.5–2.5% real rise. Context — and country — matters.

Question 4

Why doesn't this do after-tax calculations?

Accepted Answer

Take-home pay depends on dozens of factors that change every tax year — brackets, thresholds, pension contributions, student loans, tax codes, marriage allowance, local variations. We've kept this tool focused on the nominal-vs-real story because that's where the interesting decision lives and because take-home calculators are a product in their own right. A proper take-home calculator may come later.

Question 5

How is the multi-year cumulative calculated?

Accepted Answer

Nominal cumulative is simply last salary ÷ first salary − 1, expressed as a percentage. Real cumulative compounds each year's CPI: we multiply (1 + CPI₁) × (1 + CPI₂) × … for every year-over-year transition, then compare your salary growth against that compound rate. If your salary grew 15% over three years but prices grew 18%, your real raise is −2.5% (your money buys less than it did).

Question 6

Is this tool free to use?

Accepted Answer

Yes — completely free, no sign-up, no account. TimeIsMoney.tools is supported by minimal, non-intrusive advertising. Nothing you enter leaves your browser.

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