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 raise was 4% but your real raise was −1.9%. The real-terms figure is the one that matters for your standard of living.

Question 2

How do I find my US CPI rate?

Accepted Answer

The BLS publishes the US Consumer Price Index (CPI-U) monthly at bls.gov/cpi. For a year-over-year raise, use the 12-month change figure covering the period between your old and new salaries. As of mid-2025 the headline rate sits around 2.8–3.2%. Note that your personal inflation rate can differ depending on what you spend on.

Question 3

Is a 4% raise a real raise?

Accepted Answer

Only if US CPI is under 4%. In a year with 6% inflation, a 4% nominal raise means your real pay dropped by about 1.9%. In a year with 2% inflation, that same 4% raise is a genuine 2% real-terms increase. Context matters — this tool does the maths for you.

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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