Purchasing-power scenario
A what-if calculation, not an economic forecast. Choose a starting pay and your own assumptions about wage growth and inflation to see what the pay would be worth in today's dollars.
Result
After 5 years, pay of $60,000 grows to $69,556 in nominal dollars, worth $62,999 in today's dollars: a gain of $2,999 in purchasing power.
- Year 0
- Year 1
- Year 2
- Year 3
- Year 4
- Year 5
Dark bar: nominal dollars. Brass bar: inflation-adjusted dollars.
| Year | Nominal | Today's dollars |
|---|---|---|
| 0 | $60,000 | $60,000 |
| 1 | $61,800 | $60,588 |
| 2 | $63,654 | $61,182 |
| 3 | $65,564 | $61,782 |
| 4 | $67,531 | $62,388 |
| 5 | $69,556 | $62,999 |
Formula
- nominal = P × (1 + g/100)^n
- real = nominal ÷ (1 + i/100)^n
- change = real − P
Limitations
- Growth and inflation are assumptions you choose; the result is illustrative, not a prediction.
- It assumes constant annual rates, which real wages and prices never follow.
- Gross pay only: no tax, deductions or benefits are modelled.