Cost of Living Crisis Calculator

See how inflation and rising costs affect your household budget.

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Cost of Living Impact

Enter your income and expenses to see the impact of inflation.

Real income after 5 years
$0
Real expenses: $0
Nominal income
$0
Real income (inflation-adj)
$0
Real expenses
$0
Real surplus/deficit
$0
Purchasing power change
0%
Extra cost due to inflation
$0

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Annual income ($)$60,000
Annual expenses ($)$50,000
Income growth rate (%)3%
Inflation rate (%)6%
Time period (years)5
ResultValue
Real income after 5 years$51,977
Nominal income$69,556
Real income (inflation-adj)$51,977
Real expenses$50,000
Real surplus/deficit+$1,977
Purchasing power change-13.4%

Values shown are produced by this page in your browser; change any input to update them.

How to use the Cost of Living Impact

  1. Annual income ($) — default $60,000
  2. Annual expenses ($) — default $50,000
  3. Income growth rate (%) — default 3%
  4. Inflation rate (%) — default 6%
  5. Time period (years) — default 5
  6. Press Calculate to update the results instantly.

Frequently asked questions

It erodes the buying power of your income. If prices rise 6% and your pay rises 3%, you are effectively 3% worse off each year.
Divide your pay by the cumulative inflation factor. $50,000 after three years of 6% inflation buys what $41,900 bought before.
Renegotiate the biggest fixed costs first (rent, insurance, subscriptions), then ask for a pay review with inflation figures to hand.

Sources & references