Most freelancers under-price for years because the raise conversation feels riskier than it is. Here's when to raise, how much, and the exact words I use - including what to say when a client pushes back.
I've raised my rates on existing clients several times over the years, and I've lost almost no clients as a result (the ones that did leave were probably going to squeeze me on price eventually, anyway).
That says less about my negotiating skills than it does about how the conversation actually goes when you handle it like a business rather than meekly asking for a favor. Most freelancers spend years under-charging because they've (understandably) imagined this conversation going badly. But the imagined version is always worse than the real one.
My view is that a freelancer should raise their rates when any one (or more) of these is true - you've been charging the same price for twelve months, your calendar is consistently full, you've upgraded your offering/product in ways that create clear and obvious value for your clients, or your own expenses have gone up. You don't need all four of these to be true in order to justify a price increase. Any one of them is a completely justifiable reason for raising your rates.
People tend to question the 12-month trigger the most, so let’s be clear about this - US inflation has averaged about 3.2% a year over the long run, so every year that passes without raising your rates is a year in which inflation eats roughly that much of your income. If you’re making $100k/yr, going one year without a price increase costs you $3,200. But by year ten of no price increases, that same $100k annual income only provides $73k in actual buying power. That’s a massive $27k per year loss. You can see why it’s so important to price in annual increases of at least 3-4%.
It’s certainly possible. But in my experience, the clients who leave over a reasonable increase are the ones who were already price-shopping, already slow to pay, or already treating you like a throw-away vendor rather than a professional. The clients who value the working relationship almost always absorb it, because replacing you costs them more than the increase does.
That last part is the piece freelancers tend to forget (there’s that imposter syndrome sneaking in!). You're looking at your rate. Your client is looking at the switching cost - finding someone, vetting them, onboarding them, explaining the history of the account, eating the risk that the new person won’t deliver, then trying to explain to their boss why they switched to a vendor that blew it, just to save a few bucks. For a client who's been working with you for a year, a 15% increase is almost always cheaper than a replacement.
The reality is, you probably WILL lose someone eventually. To me that's acceptable. A client roster that folds under a small rate increase is a trap rather than a business.
For an existing client in a healthy working relationship, 10-20% is the range that lands without much drama. Below 10%, fold it into the annual renewal rather than making it its own conversation. I personally wouldn’t go above 25% unless there’s a reason that the client directly benefits from - a significantly improved offering, a new deliverable, a documented result.
This is why it’s important to get your rates nailed up front - a rate that’s far too low can be really difficult to raise enough to bridge the gap without risking a lot of client relationships. It’s a fairly common trap I’ve seen some people fall into - they know they're under-priced by half, so they go to the client with a 60% increase and a paragraph or two filled with justifications, and the size of the jump makes the client panic and abandon ship.
So my advice? If you need to close a big gap, close it on NEW clients immediately and on existing clients in stages. Your new-client rate and your legacy-client rate are allowed to be different numbers for a while. That's just how a business transitions.
None of this tells you what your rate should BE. Raising a rate that was never properly calculated by 15% just gets you a slightly less wrong number. If you've never worked out what you actually need to earn - your real costs, your billable days versus your calendar days, the 15.3% self-employment tax, the health insurance etc - run those numbers first. Pricing Compass does that arithmetic, and it's free to start.
Give them notice, a date, and a number, in that order, and don't explain more than one reason. The whole message is four or five sentences. Longer messages read as apologetic, and an apologetic rate increase invites a negotiation you didn't intend to open.
Here's the version I use for a good ongoing client, more or less verbatim:
Hi Sarah! I just wanted to give you a quick heads-up on rates - starting November 1 my rate for new work will be adjusted from $95 to $110 an hour. Anything we've already scoped stays at the current rate, so the Q4 build isn't affected. I wanted you to have plenty of notice for budgeting. Happy to talk it through if it's helpful.
That's it. Notice, date, number, the reassurance that nothing active/in-flight changes, an open door. No apology, no paragraph about inflation, no "I hope you understand."
For a project or retainer client where hourly isn't the unit:
Hi Marcus! I just wanted to give you a heads-up that my monthly retainer will be adjusted from $2,400 to $2,800 starting in January, which is the first change since we started in early 2025. Let me know if you'd like to use the renewal as a chance to swap things in and out.
And for the case where you're raising the rate BECAUSE the work has grown, which is the easiest version to make:
Hi Priya! When we set the retainer fee we were just doing the monthly newsletter and two social posts. I’m so excited to be partnering with you on the newsletter, the social, the landing pages and the quarterly campaign. Starting in December I'd like to adjust the retainer amount to $3,600 to properly account for this increased workload. Happy to trim the scope back if that works better for the budget.
Notice what that last one does. It offers the client a real choice - pay more, or buy less - and both answers are fine with you. That's the whole posture - you're describing two acceptable futures rather than asking permission.
Expect one of three responses: acceptance, a request for time, or an attempt to negotiate. Answer the second one generously and the third one once. Give a client who needs to get budget approval an extra 30 or 60 days without blinking. Meet a negotiation with a single alternative, then hold.
The request for time is easy and it's usually genuine:
No problem! Let's make it January 1 instead - that puts it in your new budget year. I'll invoice at the current rate until then.
The negotiation is where freelancers fold, because the client says something reasonable-sounding like "we're a bit stretched right now, can you hold the current rate for six months?" Your answer is a real alternative, not a discount:
I can't hold the old rate, but I can do this: keep the current rate through December if we lock in a six-month commitment at the new rate starting in January. That way the budget hit lands in your next fiscal year and I've got the certainty on my end.
One alternative. Then stop. If they decline, the increase stands and you say so warmly:
Understood - the new rate starts November 1 either way, and I hope we keep working together. If the budget frees up later, I'm here.
The reason that works is simple - you've made it clear the number isn't a bid. Bids get haggled. Rates get accepted or declined.
Then you have a gap in your calendar and a higher rate on your rate card, and your job for the next few weeks is filling that gap at the new number. That's uncomfortable, and it is survivable. It's also the single most common reason freelancers stay under-priced: the gap is scary in advance and short in practice.
Two practical things make it much less scary. First, don't raise rates on your whole roster in the same week. Stagger it - one or two clients a month - so that if someone leaves, you've got the rest of the roster steady underneath you. Second, do the increases when you're busy, not when you're worried. A rate increase sent from a full calendar sounds different from one sent from an empty one, and clients can sense the difference even when the words are identical.
The hard part is the eleven months beforehand, where you know you're under-priced and do nothing about it, and every invoice you send is a small reminder. That's the actual cost of avoiding this: a year spent feeling like you're working for less than you're worth, while you wait for a moment that feels right.
There's no moment that feels right. Pick a date, write the four sentences, send it.
If you want the longer written version - the formal letter with real examples you can adapt - I’ve written a companion piece to this one. And if you're not sure what the new number should be, start with Pricing Compass and work out your floor before you announce anything.
Hold the line!
Once a year is a reasonable default for existing clients, plus whenever scope grows or you add a capability the client is buying. New clients should meet your current rate immediately - there's no reason to carry an old number into a new relationship.
One reason, one sentence, and only if it's concrete (scope grew, it's been a year, costs rose). Stacking justifications makes the increase sound negotiable. Clients rarely ask why; they mostly want to know when and how much.
Thirty days is the minimum for hourly work, and 60 to 90 days is better for retainer clients who budget quarterly or annually. The notice period is what turns the increase from a surprise into an operating change.
No. Stagger them across a few months so that if one client leaves, the rest of your income is steady while you refill. It also lets you learn from the first conversation before you have the next three.
Raise your new-client rate to the right number today, and close the gap with existing clients in two steps about a year apart. A single enormous jump reads as an accusation about the past; two ordinary ones read as a business that's growing.
Put this into practice with the Freelance Mentors toolkits.
This article lives in The Freelance Plan, the preparation stage of the expedition.
More guides and free toolkits to prepare for the move: readiness, runway, niche, and your plan.
Return to the hub
The full guided ascent: 120+ lessons, the complete toolkits, and mentorship from first client to thriving business.
Explore the program
My free Saturday morning newsletter delivers freelance wisdom and advice straight from my own personal experience and research.
It’s short and sweet but nutritionally dense - the perfect complement to your weekend morning coffee.
No fluff, no spam. Unsubscribe anytime.
