Pay vs prices
Is your pay keeping up with prices?
See what your pay buys in last year’s money, and the rise you need to stand still.
UK CPI: 3.5% in the twelve months to September 2026. ONS published 2026-10-21; verified 2026-10-21. Next release expected 2026-11-18.
To estimate a pay rise after tax first, compare your old and new salaries, then bring the net amounts back here to check their purchasing power.
What does “stand still” mean?
We divide your current pay by the CPI price factor to express it in last year’s money. We multiply previous pay by that factor to find inflation-matching pay. If you leave previous pay out, the result explicitly assumes your pay has not changed.
This is a comparison with the standard UK basket, not a household budget or a prediction. If pay already exceeds the inflation-matching amount, we show the surplus and no further required rise.
Frequently Asked Questions
- How does a salary inflation calculator work?
- It compares your pay with the change in prices. To find the salary needed to maintain purchasing power, multiply your previous salary by one plus the inflation rate. For an illustrative 3% price rise, £30,000 would need to become £30,900. The calculator uses the dated ONS CPI figure shown above, rather than this example rate.
- How do I calculate a pay rise adjusted for inflation?
- Divide current pay by previous pay, then divide by the inflation factor and subtract one. For example, a 5% pay rise with 3% inflation gives 1.05 ÷ 1.03 − 1, or about 1.94% real growth. Simply subtracting the two percentages is only an approximation.
- Should I use gross salary or take-home pay?
- Keep both amounts on the same basis and frequency. Comparing gross annual salaries measures your headline pay against prices. Comparing net annual amounts measures the purchasing power of the money left after deductions. Use the salary comparison calculator first if you need to estimate those net amounts.
- Is my salary keeping up with inflation or with other people’s wages?
- These are different questions. CPI measures changing consumer prices; wage growth measures changing earnings. This tool compares your pay with UK CPI over the displayed twelve-month period. It does not provide a salary percentile, an occupation pay benchmark or a personalised household inflation rate.
Sources and assumptions
Uses the standard UK Consumer Prices Index (CPI) basket. Your own spending may rise at a different rate. CPI does not include mortgage interest or owner-occupiers’ housing costs. Gross-pay comparisons are not estimates of disposable income.
Methodology reviewed 23 September 2026. Results are estimates, not financial advice.