What Is a COLA Calculator?

A cost-of-living adjustment calculator projects how an income or benefit grows when it is raised annually by a fixed percentage. It applies the COLA rate on top of the previous year's amount, so the increase compounds — the year-five dollar gain is larger than the year-one gain even at a constant rate.

How It Works

Each year, the new amount equals the prior amount multiplied by (1 + rate). After N years, the final amount equals the starting amount times (1 + rate)ⁿ. The area chart traces the growth curve year by year, and the breakdown table reports the starting amount, final amount, and the cumulative dollar and percentage increase.

Understanding Your Results

The headline number is your adjusted annual amount at the end of the period. Compare it against your current amount and the cumulative growth percentage to see how much of your raise is simply inflation protection versus real growth. If your actual raise is below the COLA rate you assumed, your purchasing power is shrinking year over year.