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COLA & Adjustments

COLA Schedule Calculator

Model recurring cost

COLA Schedule Calculator: Scenario Inputs

Live Model
$
%

Annual percentage rate or benchmark index change.

3y
%
Computed Results

Inflation & Purchasing Power Analysis

Real Adjusted Value
$67,645
Effective base purchasing power
Purchasing Power Loss
-$7,355
-9.81% cumulative loss
Target Inflation Break-Even
$83,154
Salary needed to keep pace
Net Real Wage Growth
-1.45%/yr
Nominal raise vs price index

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%).

Need complete multi-year compound modeling?

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Main Calculator

How COLA Schedule Calculator Works?

The COLA Schedule Calculator works by applying each scheduled COLA to the pay that results from the previous one.

  1. Enter starting pay

    Type pay before the first COLA.

  2. Set the schedule

    Pick the adjustment frequency and the first adjustment date.

  3. Enter rates

    Type each COLA rate, or one rate for all dates.

  4. 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.

Pay after adjustment k

Payk = Payk−1 × (1 + COLAk)

Cumulative increase

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 dateCOLA rateNew payIncrease in dollarsCumulative increase
January, year 13.2%$66,048$2,0483.20%
January, year 22.8%$67,897$1,8496.09%
January, year 32.5%$69,595$1,6978.74%
January, year 42.5%$71,335$1,74011.46%
January, year 52.2%$72,904$1,56913.91%

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.