How do I enter a cash flow that has a cost-of-living adjustment (COLA)?
How do I enter a cash flow that has a cost-of-living adjustment (COLA)?
Last published on: September 03, 2025
Income Lab allows you to enter cash flows with the following three inflation treatments:
- Adjusted for inflation: cash flows that are adjusted over time to account for inflation. These are sometimes called "real" cash flows.
- Not adjusted for inflation: cash flows that remain at the same dollar amount over time, with no adjustments. These are sometimes called "nominal" cash flows.
- Custom: cash flows that are adjusted annually by a fixed percentage.
If you have a cash flow with a cost-of-living adjustment (COLA), choose the third option. When you do so, a new field called Custom % will appear in the details of this cash flow. Simply fill in the annual percentage COLA rate and you're all set!
When you're entering a cash flow with a COLA, please use the following rules for filling in the amount and begin month / begin year fields.
| Cash Flow Beginning Point is... | Amount | Begin Year / Begin Month |
| In the Future | Anticipated first amount | Date of first anticipated receipt |
| In the Past | Last amount received | Date of last payment received |
NOTE: Income Lab assumes that all COLAs take effect in January.
