body {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
line-height: 1.6;
color: #333;
max-width: 800px;
margin: 0 auto;
padding: 20px;
}
.calculator-wrapper {
background-color: #f8f9fa;
border: 1px solid #e9ecef;
border-radius: 8px;
padding: 30px;
margin-bottom: 40px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.calc-title {
text-align: center;
color: #2c3e50;
margin-bottom: 25px;
font-size: 24px;
font-weight: 700;
}
.input-group {
margin-bottom: 20px;
}
.input-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #495057;
}
.input-group input {
width: 100%;
padding: 12px;
border: 1px solid #ced4da;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box; /* Ensures padding doesn't affect width */
}
.input-group input:focus {
border-color: #4dabf7;
outline: none;
box-shadow: 0 0 0 3px rgba(77, 171, 247, 0.2);
}
.btn-calc {
width: 100%;
padding: 14px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: 600;
cursor: pointer;
transition: background-color 0.2s;
}
.btn-calc:hover {
background-color: #0056b3;
}
.results-area {
margin-top: 25px;
padding: 20px;
background-color: #fff;
border: 1px solid #dee2e6;
border-radius: 4px;
display: none;
}
.result-row {
display: flex;
justify-content: space-between;
align-items: center;
padding: 10px 0;
border-bottom: 1px solid #eee;
}
.result-row:last-child {
border-bottom: none;
}
.result-label {
color: #6c757d;
font-weight: 500;
}
.result-value {
font-size: 20px;
font-weight: 700;
color: #2c3e50;
}
.highlight-value {
color: #28a745;
font-size: 24px;
}
.article-content h2 {
color: #2c3e50;
margin-top: 30px;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
}
.article-content h3 {
color: #495057;
margin-top: 20px;
}
.article-content p, .article-content li {
font-size: 17px;
color: #444;
}
.formula-box {
background-color: #e9ecef;
padding: 15px;
border-left: 5px solid #007bff;
font-family: "Courier New", monospace;
margin: 20px 0;
}
function calculateWage() {
var baseWage = parseFloat(document.getElementById('baseWage').value);
var baseCPI = parseFloat(document.getElementById('baseCPI').value);
var targetCPI = parseFloat(document.getElementById('targetCPI').value);
if (isNaN(baseWage) || isNaN(baseCPI) || isNaN(targetCPI)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (baseCPI === 0) {
alert("Base CPI cannot be zero.");
return;
}
// Calculation Logic: Nominal Wage 2 = Nominal Wage 1 * (CPI 2 / CPI 1)
var adjustedWage = baseWage * (targetCPI / baseCPI);
// Inflation Percentage: ((CPI 2 – CPI 1) / CPI 1) * 100
var inflationRate = ((targetCPI – baseCPI) / baseCPI) * 100;
// Multiplier
var multiplier = targetCPI / baseCPI;
var displayWage = adjustedWage.toLocaleString('en-US', { style: 'currency', currency: 'USD' });
document.getElementById('resWage').innerHTML = displayWage;
document.getElementById('resInflation').innerHTML = inflationRate.toFixed(2) + "%";
document.getElementById('resMultiplier').innerHTML = multiplier.toFixed(4) + "x";
document.getElementById('results').style.display = "block";
}
Understanding Nominal Wage and CPI
The relationship between your paycheck and the cost of living is defined by the concepts of Nominal Wage and Real Wage. While the nominal wage is the actual amount of money printed on your paycheck, it does not account for the changing prices of goods and services over time.
To accurately assess purchasing power, economists use the Consumer Price Index (CPI). The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. By using the CPI, you can adjust a nominal wage from one time period to comparable terms in another time period.
Formulas to Calculate Nominal Wage with CPI
There are two primary ways to calculate nominal wage rates depending on what data you have available.
1. Adjusting Nominal Wage for Inflation
If you know a past wage and want to know what the equivalent nominal wage should be today (to maintain the same purchasing power), use this formula:
Target Nominal Wage = Base Wage × (Target CPI / Base CPI)
For example, if you earned $20.00/hour when the CPI was 100, and the CPI is now 150, you would need a nominal wage of $30.00/hour to buy the exact same amount of goods.
2. Calculating Nominal Wage from Real Wage
If you have a target "Real Wage" (the wage adjusted for inflation, usually expressed in base-year dollars) and the current CPI, you can find the current Nominal Wage required:
Nominal Wage = (Real Wage × Current CPI) / 100
In this context, the "Real Wage" is usually an index-adjusted figure where the base year CPI is normalized to 100.
Example Calculation
Let's look at a practical example of adjusting a salary using the CPI:
- Year 2010 Salary: $50,000
- 2010 CPI (Base): 218.06
- 2023 CPI (Target): 304.70
To find the equivalent nominal wage in 2023:
Calculation: 50,000 × (304.70 / 218.06) = 50,000 × 1.3973 = $69,866.09
This means a salary of $50,000 in 2010 has the same purchasing power as approximately $69,866 in 2023. If your current nominal wage is less than this amount, your real wage (purchasing power) has effectively decreased despite the number on your paycheck potentially looking higher.
Why This Matters
Calculating the nominal wage rate with CPI is essential for salary negotiations and financial planning. It helps workers understand if their raises are keeping up with inflation or if they are effectively taking a pay cut. For employers, it assists in adjusting pay scales to ensure employee retention in a changing economic landscape.