Cost of Living Adjustment Calculator
Calculate how a COLA raise affects your nominal salary and real purchasing power compared to inflation.
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Frequently Asked Questions
What is COLA?
Cost-of-Living Adjustment (COLA) is a periodic increase in wages, benefits, or Social Security payments designed to keep pace with inflation. It maintains purchasing power as prices rise over time.
How is Social Security COLA determined?
Social Security COLA is based on the Consumer Price Index for Urban Wage Earners (CPI-W). SSA compares Q3 CPI-W from the current year to Q3 of the previous year. The 2024 COLA was 3.2%; 2023 was 8.7%.
How does COLA affect long-term salary?
A 3% annual COLA doubles a salary in approximately 24 years (Rule of 72: 72 ÷ 3 = 24). Over a 30-year career, consistent 3% COLAs result in a salary 2.4× the starting amount.