Enter the current wages ($) and the inflation rate (%) into the Real Wage Rate Calculator. The calculator will evaluate the Real Wage Rate.

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## Real Wage Rate Formula

The following two example problems outline the steps and information needed to calculate the Real Wage Rate.

RWR = CW / (1+IR/100)

- Where RWR is the Real Wage Rate ($)
- CW is the current wages ($)
- IR is the inflation rate (%)

To calculate the real wage rate, divide the current wage rate by the result of 1 plus the inflation rate.

## How to Calculate Real Wage Rate?

The following example problems outline how to calculate Real Wage Rate.

Example Problem #1:

- First, determine the current wages ($).
- The current wages ($) is given as: 50,000.

- Next, determine the inflation rate (%).
- The inflation rate (%) is provided as: 5.

- Finally, calculate the Real Wage Rate using the equation above:

RWR = CW / (1+IR/100)

The values provided above are inserted into the equation below and computed.

RWR = 50,000 / (1+5/100) = 47,619.05 ($)

Example Problem #2:** **

For this problem, the variables required are provided below:

current wages ($) = 60,000

inflation rate (%) = 3

Test your knowledge using the equation and check your answer with the calculator..

RWR = CW / (1+IR/100)** = ?**