# Social Security COLA Calculator: Your New Benefit

> Estimate your Social Security check after the next cost-of-living adjustment, net of the Medicare Part B premium and the hold-harmless rule, with a multi-year projection.

Source: https://www.themoneypocket.com/tools/social-security-cola-calculator

A Social Security cost-of-living adjustment (COLA) raises your monthly benefit by the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from one third quarter to the next. This calculator applies a COLA to your benefit the way SSA rounds it, subtracts the Medicare Part B premium with the hold-harmless limit, and projects your check for up to 40 years.

> Interactive calculator: https://www.themoneypocket.com/tools/social-security-cola-calculator
**The short answer:** the 2026 COLA was **2.8%** ([SSA notice, 90 FR 49047](https://www.govinfo.gov/content/pkg/FR-2025-11-03/html/2025-19763.htm)). A $2,000 benefit became $2,056.00 a month, $56 more. If you have Medicare, the Part B premium went from $185.00 to $202.90 ([CMS 2026 Part B fact sheet](https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles)), so the deposit rose by less than the COLA for many people. For people with small benefits, the hold-harmless rule stopped the premium increase from shrinking the deposit.

The calculator is for informational purposes only. Its results are estimates. SSA applies the COLA to your primary insurance amount, not to your payment, so its figure can differ from this one by a few cents. Your benefit notice from SSA is the final word.

To decide when to start benefits, use the [Social Security claiming calculator](https://www.themoneypocket.comtools/social-security-calculator). To see how much of the new, higher benefit is taxable, use the [taxable Social Security calculator](https://www.themoneypocket.comtools/taxable-social-security-calculator).

## How the Social Security COLA is calculated

The formula is set by section 215(i) of the Social Security Act ([42 U.S.C. §415(i)](https://www.law.cornell.edu/uscode/text/42/415)) and spelled out every year in SSA's Federal Register notice:

1. **Average the CPI-W for July, August and September.** SSA rounds this third-quarter average to the same number of decimal places as the published CPI-W, which today means the nearest 0.001 ([20 CFR 404.275](https://www.ecfr.gov/current/title-20/chapter-III/part-404/subpart-C/section-404.275)).
2. **Compare it with the last "computation quarter."** That is the most recent third quarter that produced a COLA. Usually it is last year's, but not always (see 2016 below).
3. **Round the percentage increase to the nearest 0.1%.** That is the COLA. If the average did not rise, there is no COLA and benefits stay flat.
4. **Apply it to December benefits, paid in January.** Each primary insurance amount (and each benefit) is multiplied by 1 + COLA and rounded down to the next lower multiple of $0.10.
5. **Round the payment down to the dollar.** After the Medicare premium and any other deductions, the monthly payment is rounded down to the next lower $1 ([42 U.S.C. §415(g)](https://www.law.cornell.edu/uscode/text/42/415)).

### Worked example: the 2026 COLA from the official CPI-W numbers

SSA's notice for 2026 lists the CPI-W values it used:

- Third quarter 2025: July 316.349, August 317.306, September 318.139.
- Average: (316.349 + 317.306 + 318.139) ÷ 3 = 951.794 ÷ 3 = 317.264667, rounded to **317.265**.
- Last computation quarter (third quarter 2024): **308.729**.
- Increase: 317.265 ÷ 308.729 = 1.02765, a 2.765% rise, rounded to **2.8%**.

To run this yourself next year, switch the calculator to "Compute it from CPI-W." It already holds 317.265 as the base. Type in the July, August and September CPI-W values once the Bureau of Labor Statistics publishes them. Use the unadjusted CPI-W index, series CWUR0000SA0, not the seasonally adjusted series or the CPI-U that makes headlines.

## How to use the calculator

| Input | What to enter |
|---|---|
| Monthly benefit now | Your benefit **before** the Medicare premium and any tax withholding. Your annual COLA notice and your my Social Security account show it as the amount "before deductions." |
| COLA | Pick "Enter the COLA percentage" and type the announced COLA or your own estimate. Or pick "Compute it from CPI-W" to calculate it from the July–September index values. |
| Part B premium now | What is deducted today. The 2026 standard premium is $202.90. If you pay IRMAA, enter the total, standard premium plus surcharge. |
| Part B premium next year | The premium for the year the COLA takes effect. CMS usually announces it in the fall. Until it does, the field shows the current premium. |
| Hold-harmless checkbox | Check it if you pay IRMAA, or if you did not receive benefits for both November and December. Your premium increase is then not limited. |
| Years to project, assumed COLA | The projection applies your COLA in the first year, then the assumed rate each year after. The default is the 10-year average from the table below. |

The results show your new gross benefit and your deposit before and after the change. They flag whether the hold-harmless rule applies and give a year-by-year projection, with the extra income the COLAs add compared with a benefit frozen at today's amount.

## Social Security COLA history

All figures are from SSA's annual "Cost-of-Living Increase and Other Determinations" notices in the Federal Register. The COLA is listed under the year it was first paid; it takes effect with the prior December's benefit.

| Paid starting January | COLA | Third-quarter CPI-W average used |
|---|---|---|
| 2017 | 0.3% | 235.057 (vs. 234.242 in 2014) |
| 2018 | 2.0% | 239.668 |
| 2019 | 2.8% | 246.352 |
| 2020 | 1.6% | 250.200 |
| 2021 | 1.3% | 253.412 |
| 2022 | 5.9% | 268.421 |
| 2023 | 8.7% | 291.901 |
| 2024 | 3.2% | 301.236 |
| 2025 | 2.5% | 308.729 |
| 2026 | 2.8% | 317.265 |

Over these 10 years the simple average COLA was 3.11% (31.1% ÷ 10). Compounded, the 10 increases add up to about 35.5%. With SSA's dime rounding each year, a $1,000 benefit in 2016 grew to $1,354.40 by 2026: $1,003.00, $1,023.00, $1,051.60, $1,068.40, $1,082.20, $1,146.00, $1,245.70, $1,285.50, $1,317.60, then $1,354.40.

**Why 2017 compares with 2014:** the 2015 third-quarter CPI-W was lower than 2014's, so there was no COLA for 2016. The third quarter of 2014 stayed the "last computation quarter." The 2017 COLA of 0.3% measured the rise from 234.242 (2014) to 235.057 (2016) ([SSA notice for 2017](https://www.govinfo.gov/content/pkg/FR-2016-10-27/html/2016-26026.htm)).

## Medicare Part B and the hold-harmless rule

If you are on Medicare and receive Social Security, SSA usually deducts the Part B premium from your benefit. The premium generally changes in January, the same month the COLA arrives. So the net change in your deposit is the COLA raise **minus** the premium increase.

For 2026 the standard Part B premium rose $17.90, from $185.00 to $202.90 ([CMS](https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles)). A 2.8% COLA covers that only if your benefit is above about $640 a month ($17.90 ÷ 0.028 = $639.29). Below that, the hold-harmless rule takes over.

### Who the hold-harmless rule protects

Under [42 U.S.C. §1395r(f)](https://www.law.cornell.edu/uscode/text/42/1395r), the Part B premium cannot rise by more than it takes to keep your December benefit, paid in January, from falling below your November benefit after the premium is deducted. You are protected only if **all** of these apply:

- You were entitled to Social Security benefits for both November and December of the prior year.
- Your Part B premium was deducted from your benefit for December and January.
- You do not pay an income-related monthly adjustment amount (IRMAA).

New Medicare enrollees, people who start Social Security late in the year, and IRMAA payers pay the full new premium. People whose premium is paid by a state Medicaid program don't see the increase in their check either way.

### Worked example: hold-harmless with a small benefit

Take a $500 benefit in 2025 with the $185.00 premium deducted:

- November 2025 deposit: $500.00 − $185.00 = **$315**.
- After the 2.8% COLA: $500 × 1.028 = **$514.00**, a $14.00 raise.
- The full 2026 premium would leave $514.00 − $202.90 = $311.10, rounded down to $311. That is $4 less than in November, which the rule forbids.
- So the premium is capped at $514.00 − $315 = **$199.00**, and the deposit stays at **$315**.

The premium rose only $14.00, not $17.90. If the same person paid IRMAA, the full increase would apply and the deposit would fall to $311. Enter these numbers in the calculator to see the cap at work.

### Worked example: a typical benefit

A $2,000 benefit with the $202.90 premium, assuming next year's premium is unchanged:

- Before: $2,000.00 − $202.90 = $1,797.10, rounded down to **$1,797**.
- After a 2.8% COLA: $2,000 × 1.028 = $2,056.00; $2,056.00 − $202.90 = $1,853.10, rounded down to **$1,853**.
- Raise: **$56 a month, $672 a year**.

If the premium goes up next year, enter the new amount in the "Part B premium next year" field. Each dollar of premium increase takes a dollar off the raise.

## Projecting your benefit over time

The projection compounds one COLA per year and rounds to the dime each time, as SSA does. For example, $2,000 with a 2.8% COLA, then 2.5% a year:

| Year | Calculation | Monthly benefit |
|---|---|---|
| 1 | $2,000.00 × 1.028 | $2,056.00 |
| 2 | $2,056.00 × 1.025 | $2,107.40 |
| 3 | $2,107.40 × 1.025 = $2,160.085 | $2,160.00 (rounded down to the dime) |

By year three the benefit is $160 a month, or $1,920 a year, above a frozen $2,000 benefit. Future COLAs are unknown. In the last decade alone they ranged from 0% (2016) to 8.7% (2023), so treat any projection as one scenario, not a forecast. The projection stays in nominal dollars. A COLA only keeps pace with the CPI-W, so in today's dollars your benefit stays roughly flat. To compare savings against inflation, see the [inflation savings calculator](https://www.themoneypocket.comtools/inflation-savings-calculator).

## What the COLA does and doesn't change

| Item | Changes with the COLA? | 2026 figure |
|---|---|---|
| Retirement, survivor and disability benefits | Yes, by the COLA percentage | +2.8% |
| SSI federal payment (individual / couple) | Yes | $994 / $1,491 a month |
| Taxable maximum (wage base) | No, follows the national average wage index | $184,500 |
| Earnings-test exempt amounts | No, follow the wage index | $24,480 / $65,160 a year |
| Medicare Part B premium | No, set separately by CMS | $202.90 a month |
| Provisional income thresholds for taxing benefits | No, fixed in the tax code | $25,000 / $32,000 |

The SSI, wage base and earnings-test figures are from SSA's 2026 notice ([90 FR 49047](https://www.govinfo.gov/content/pkg/FR-2025-11-03/html/2025-19763.htm)). The earnings test matters if you claim before full retirement age and keep working. The [Social Security claiming calculator](https://www.themoneypocket.comtools/social-security-calculator) explains it.

## COLAs, taxes and Medicare IRMAA

A COLA raises your gross benefit, and that has knock-on effects:

- **More of your benefit can become taxable.** Benefits start to become taxable once provisional income (other income + tax-exempt interest + half of benefits) passes $25,000 single or $32,000 joint, and up to 85% is taxable above $34,000 or $44,000 ([26 U.S.C. §86](https://www.law.cornell.edu/uscode/text/26/86)). Those thresholds are not indexed, so every COLA pushes a little more income over them. Our guide to [how Social Security benefits are taxed](https://www.themoneypocket.comarticles/how-social-security-benefits-are-taxed) walks through the worksheet.
- **IRMAA is based on income from two years earlier.** A COLA alone rarely pushes you into a higher IRMAA tier. But it adds to the modified AGI that Medicare looks at. Estimate yours with the [MAGI calculator](https://www.themoneypocket.comtools/magi-calculator).
- **The senior deduction phases out with income.** If you are 65 or older, the temporary senior deduction shrinks as modified AGI rises, and a higher benefit can add to that income. See the [senior deduction calculator](https://www.themoneypocket.comtools/senior-deduction-calculator).
- **Withholding is a percentage.** If you chose voluntary federal withholding from your benefit, the same percentage now applies to a larger benefit.

## Does delaying your claim mean missing COLAs?

No. COLAs are applied to your primary insurance amount starting with the year you turn 62, whether you have claimed or not ([42 U.S.C. §415(i)(2)(A)(iii)](https://www.law.cornell.edu/uscode/text/42/415)). If you claim at 70, your benefit includes every COLA since 62 plus delayed retirement credits. That is why claiming comparisons can be done in today's dollars. The trade-offs are covered in [when to claim Social Security: 62 vs 67 vs 70](https://www.themoneypocket.comarticles/when-to-claim-social-security-62-vs-67-vs-70) and in our [Social Security claiming strategies](https://www.themoneypocket.comarticles/social-security-claiming-strategies-maximize-benefits) guide.

## Edge cases the calculator does not model

- **Your benefit is reduced for early claiming or spousal status.** SSA raises the primary insurance amount and then reapplies the reduction. Raising your payment directly, as the calculator does, can differ by a few cents a year.
- **Family maximum.** If several family members draw on one record, the family maximum rises by the COLA too. Individual benefits can shift slightly when the maximum is reallocated.
- **Garnishments, offsets and overpayment recovery** are deducted after the COLA. The calculator ignores them.
- **Part D and Medicare Advantage premiums** can also be deducted from your check. Add them to both premium fields if you want the deposit to match. Hold-harmless covers only the Part B premium.
- **The COLA can't be negative.** If the CPI-W falls, benefits stay the same. The calculator returns a 0% COLA in that case.

## Where to check the official numbers

- The COLA, CPI-W values, SSI amounts, wage base and earnings test: SSA's annual Federal Register notice. For 2026 that is [90 FR 49047](https://www.govinfo.gov/content/pkg/FR-2025-11-03/html/2025-19763.htm).
- The Part B premium and IRMAA brackets: the [CMS annual fact sheet](https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles).
- Your own new benefit: the COLA notice SSA sends each December, which you can also view in your my Social Security account.

We update this page and the calculator's default COLA once SSA announces the next adjustment. For other retirement income decisions, start at the [retirement planning hub](https://www.themoneypocket.comhub/retirement-planning).