Calculate purchasing power
Calculate how much your purchasing power changes due to inflation and income growth. See whether you are better off or worse off.
What is purchasing power?
Purchasing power indicates how many goods and services you can buy with your income. If prices rise due to inflation and your income does not keep pace, your purchasing power decreases. If your income rises faster than inflation, your purchasing power increases.
With this purchasing power calculation tool, you gain insight into the actual change in your financial situation.
How does calculating purchasing power work?
The tool compares:
- your current income
- your income increase
- the inflation rate
The result shows how much your income is worth in real terms , adjusted for inflation.
When do you use this tool?
- assess salary increase
- analyzing collective labor agreement terms
- financial planning
- providing insight into loss of purchasing power
- economic studies
Who is this tool suitable for?
- employees
- entrepreneurs
- students
- policymakers
- everyone who wants to compare income
Frequently Asked Questions
Is this gross or net income? You can use both, as long as you remain consistent.
Is this based on official inflation? No, you enter the inflation percentage yourself.
Is this exact? It is an approximation based on fixed assumptions.