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I have a long term relationship with a client who has been good to me (and for whom I have become a trusted resource). However, I am billing them at a rate that was set at the beginning of 2021. I am about to enter into discussions about increasing my rate for the start of 2024. At the very least I want to compensate for inflation since the beginning of 2021, but after googling a bunch of inflation calculators I am very confused (or maybe I just don't trust them - one of them suggested a 63% increase).

So based on (for example) a $100/hr rate after January 1st, 2021, what would be an inflation adjusted rate for the beginning of 2024?

I'm specifically interested in inflation in the US, but I'd be happy with a general solution which allows me to plug in general inflation values.

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I finally figured this out myself. I went to the US Social Security Cost-Of-Living Adjustments web page, and looked up the Cola values for 2021 through 2023.

Year Amount
2021 5.9%
2022 8.7%
2023 3.2%

Then I applied each value sequentially to calculate the rate at the end of that year.

So starting with $100 at the beginning of 2021:

Year Start Rate Cola End Rate
2021 $100.00 5.9% $105.90
2022 $105.90 8.7% $115.11
2023 $115.11 3.2% $118.79

The rate at the end of 2023 should be at least $118

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