COLA Schedule Calculator
Model recurring cost
COLA Schedule Calculator: Scenario Inputs
Annual percentage rate or benchmark index change.
Inflation & Purchasing Power Analysis
Over 3 years at 3.5% inflation, a $75,000 salary requires $83,154 to retain equal purchasing power. Without matching raises, your real compensation experiences an effective reduction of $7,355 (-9.81%).
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How COLA Schedule Calculator Works?
The COLA Schedule Calculator works by applying each scheduled COLA to the pay that results from the previous one.
Enter starting pay
Type pay before the first COLA.
Set the schedule
Pick the adjustment frequency and the first adjustment date.
Enter rates
Type each COLA rate, or one rate for all dates.
Read the schedule
The output lists each date, rate, new pay and cumulative increase.
COLA Schedule Calculator Formula
The COLA Schedule formula compounds each scheduled adjustment onto the prior pay level.
Payk = Payk−1 × (1 + COLAk)
Cumulative = Π (1 + COLAk) − 1
Variables
- COLAk
- Rate of adjustment k
Worked example
Five yearly COLAs of 3.2%, 2.8%, 2.5%, 2.5% and 2.2% lift $64,000 to $72,904, a cumulative increase of 13.91%.
COLA Schedule Calculator Conversion Table
This table builds a 5-step yearly COLA schedule for $64,000 of starting pay.
| Adjustment date | COLA rate | New pay | Increase in dollars | Cumulative increase |
|---|---|---|---|---|
| January, year 1 | 3.2% | $66,048 | $2,048 | 3.20% |
| January, year 2 | 2.8% | $67,897 | $1,849 | 6.09% |
| January, year 3 | 2.5% | $69,595 | $1,697 | 8.74% |
| January, year 4 | 2.5% | $71,335 | $1,740 | 11.46% |
| January, year 5 | 2.2% | $72,904 | $1,569 | 13.91% |
What is COLA Schedule Calculator?
The COLA Schedule Calculator is a tool that models a series of recurring cost-of-living adjustments (COLAs) on set dates and builds the resulting pay schedule. The schedule lists each adjustment date, rate and new pay level.
Recurring COLAs compound, so a schedule of 5 yearly COLAs averaging 2.6% raises pay by more than 13%.
What are the uses of COLA Schedule Calculator?
There are 4 main uses of the COLA Schedule Calculator.
Publish pay schedules
Give staff a clear table of future pay levels.
Plan multi-year budgets
Cost a full multi-year COLA agreement.
Model contract terms
Lay out COLA steps in a collective agreement.
Check compounding
Show the cumulative effect of several small COLAs.
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