What's my raise actually worth?

A 3% raise during 4% inflation is a pay cut.

The raise on the paystub feels like progress. Inflation eats chunks of it before you ever see the money. Real-dollar math, using BLS CPI-U.

Salary before raise
$
Salary after raise
$
Year of old salary
The math, in real dollars

On paper

$5,000/yr

6.7% raise, before inflation

In real dollars

$2,419/yr

3.2% raise, after inflation

Verdict

So this means you actually got a $2,419 raise after adjusting for inflation.

Inflation since 2025: 3.4%. That means $75,000 in 2025 buys what $77,581 buys today.

Source: BLS CPI-U, all-urban consumers, US city average. Data refreshes monthly.

Now what?

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