A retainer that hasn't changed in two years has quietly become a pay cut. Prices rise, so the same monthly fee buys less every year. This calculator shows how much purchasing power a fixed retainer or rate has lost, what it should be today to be worth the same, and gives you a short note you can send to the client.
How it works
The inflation factor is (1 + average rate)ⁿ, where n is the number of years since the retainer started, counted in months. A retainer that started in December 2025 is not a year old in January 2026, so the calculator counts months, not calendar years.
With a rate for each year, the factors are multiplied together: 10% then 5% gives 1.10 × 1.05 = 1.155, a 15.5% rise. A partial first or last year uses only the months that fall inside the period.
What to charge today is the original retainer × the factor. The real value of the current retainer is the original ÷ the factor: what it's worth in start-date money. The difference between the two is the monthly shortfall.
Use official consumer price index (CPI) figures for the country your costs are in, published by the national statistics office. Inflation varies a lot between countries, so a US average won't fit a retainer paid in Pakistan or Saudi Arabia.
A worked example
A $1,000 retainer started in September 2024. With 3.5% inflation a year, two years later the factor is 1.035² = 1.071225. To keep the same value you'd charge $1,071.23 today, a 7.12% increase. The current $1,000 is worth only $933.51 in 2024 money, so you are short about $71 every month.
Questions people ask
How do I adjust a retainer for inflation?
Multiply the original fee by (1 + inflation rate) for each year that has passed. For $1,000 over two years at 3.5%: $1,000 × 1.035 × 1.035 = $1,071.23. The calculator also handles a different rate for each year and part-years.
Where do I find inflation figures?
Use the consumer price index from your national statistics office, such as the US Bureau of Labor Statistics, the UK Office for National Statistics, the Pakistan Bureau of Statistics or the Saudi General Authority for Statistics. Use the country your costs are in.
How do I tell a client their retainer is going up?
Give at least a month's notice, state the new amount and start date, and explain it as keeping pace with rising costs. The note this calculator writes is a neutral starting point. Many freelancers add an inflation review clause to new contracts so the conversation happens automatically each year.
Why is the real value not just the original minus the increase?
Because inflation compounds. The correct real value is the original ÷ the inflation factor. Subtracting the increase overstates what the retainer is still worth.
Should I add more than inflation?
Inflation only keeps you level. If your skills, results or demand have grown, a rate review can go beyond it. Use this figure as the floor for the conversation, not the ceiling.