EconixaECONOMICS FUNDAMENTALS

Interactive calculator

Real Wage Calculator

A raise is only real if it beats inflation. Real wage = (nominal wage / price index) x 100. Enter a nominal wage and the price index for two years to compare purchasing power across time — the correct way to judge whether workers are actually better off.

Inflation Rate Calculator

Inflation = (CPI_now − CPI_base) ÷ CPI_base × 100

Inflation rate = 10.00%
Steps
  1. Change in the index: CPI_now − CPI_base = 110.00 − 100.00 = 10.00
  2. Proportional change: 10.00 ÷ 100.00 = 0.1000
  3. As a percent: × 100 = 10.00%
  4. Reading: prices rose — inflation.
Note

Illustrative only — a simplified year-over-year example using a two-point CPI series. Real-world inflation measures use the full consumer basket and published index tables from the statistical authority.

How to use it

  1. Enter the nominal wage and price index for year one.

  2. Enter the nominal wage and price index for year two.

  3. Compare the real wages and the percentage change.

What you will learn

  • Convert nominal wages to real wages.
  • Explain why nominal raises can mislead.
  • Compare living standards across years.