A salary inflation calculator shows the real purchasing power of a salary over time by adjusting for inflation. A salary of $50,000 in 2010 would need to be ~$72,000 in 2023 to have the same purchasing power (using ~3% average inflation).
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Pro Tip
When negotiating salary, ask for raises above inflation to get a real increase. A 3% raise in a 5% inflation environment means you're earning less in real terms than last year.
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Did You Know?
The purchasing power of $1 in 1913 (when the US Federal Reserve was founded) had fallen to about $0.04 by 2024 — a 96% decline over 111 years. Average annual inflation over that period was about 3.2%.
References
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