Net Salary Gain Calculator

Formula

The formula to calculate the net salary gain considering inflation is:

\[ NS = FS - IS - (IS \times I) \]

Where:

NS is the net salary gain ($)
IS is the initial salary ($)
FS is the final salary ($)
I is the inflation rate (%)

What is Salary Inflation?

Salary inflation is a measure of the net gain of salary after inflation has been taken into account. It reflects the real increase or decrease in purchasing power of the salary over time.

Example Calculation

Example 1:

Initial Salary: $50,000
Final Salary: $55,000
Inflation Rate: 3%

Calculation:

\[ NS = 55,000 - 50,000 - (50,000 \times 0.03) = 55,000 - 50,000 - 1,500 = 3,500 \text{ dollars} \]

Example 2:

Initial Salary: $70,000
Final Salary: $75,000
Inflation Rate: 2%

Calculation:

\[ NS = 75,000 - 70,000 - (70,000 \times 0.02) = 75,000 - 70,000 - 1,400 = 3,600 \text{ dollars} \]