When to Raise Your Rates (And How to Tell Clients)
You need to raise your rates. You’ve probably known this for a while.
Maybe you calculated your sustainable rate and realized you’re charging $30 less than you need to. Maybe your expenses went up, and your income didn’t. Maybe you’ve gained experience and training, yet you’re still charging what you did when you were a new therapist.
Whatever the reason, you’re here. Let’s talk about how to actually do it.
When to raise your rates.
There’s no perfect time. But here are signs it’s overdue: You calculated your sustainable rate, and it’s higher than your current rate. You haven’t raised rates in over a year. You resent your work or your clients (often a sign you’re undercharging). You’re fully booked with a waitlist. Your expenses have increased. You’ve completed significant additional training.
If any of these apply, it’s time.
How much to raise.
If you’re significantly undercharging, consider a larger increase for new clients and a smaller, gradual increase for existing clients.
If you’re doing an annual adjustment, 3-5% is reasonable and expected.
There’s no rule that says you have to raise everyone’s rate at the same time or by the same amount. New clients pay your new rate. Existing clients can transition over time.
Telling existing clients.
Give advance notice. 4-8 weeks is standard. This is a courtesy and also good clinical practice - it gives time to process if money is a loaded topic for them.
Be direct. Don’t over-explain or apologize. You’re running a business and rates increase.
Here’s a simple script:
“I wanted to let you know that my rate will be increasing to $[amount] starting [date]. I’m giving you [X weeks] notice so you have time to plan. If you have any questions or concerns, we can absolutely talk about it.”
Then stop. Let them respond.
What if they can’t afford it?
Some clients will say the new rate doesn’t work for them. That’s okay. You have options:
Honor the relationship: “I understand. I can keep you at the current rate for [X more months] to give you time to transition.”
Reduce frequency: “Would it work to meet every other week instead of weekly?”
Refer out: “I want to make sure you get the support you need. Would it be helpful if I gave you some referrals to therapists with lower rates?”
What you don’t have to do: keep everyone at your old rate forever because you feel guilty.
The mindset piece.
Raising your rate will bring up stuff. Guilt. Fear of rejection. Worry about what clients will think.
Notice it. Feel it. Do it anyway.
Your rate isn’t about being greedy. It’s about sustainability. You can’t help anyone if you burn out because you’re not making enough to live.
Therapists who charge sustainable rates stay in the field longer. That’s good for everyone.
The rate calculator shows you exactly what you need to charge. Try it free: https://privatepaypractitioners.com/rate-calc
How to Calculate Your Private Pay Rate (And Actually Charge It)
“What should I charge?” is the wrong question.
The right question is: “What do I need to charge to sustain my life and my practice?”
Most therapists pick a rate by looking around at what other therapists charge, picking something in the middle, and hoping it’s enough. That’s not a strategy. That’s a guess.
Your rate isn’t about your worth.
Let’s get this out of the way: I don’t believe in “charge what you’re worth.” You’re a human being - your worth isn’t quantifiable. And frankly, that framing keeps therapists stuck, because they tie their self-esteem to a dollar amount.
Your rate is about math. What does it cost to run your life and your business? That’s your starting point.
The actual calculation.
Here’s the simplified version:
Add up your monthly personal expenses (rent/mortgage, food, utilities, insurance, debt payments, everything)
Add up your monthly business expenses (EHR, liability insurance, subscriptions, continuing education, etc.)
Add those together
Multiply by 1.3 to account for taxes and self-employment costs
Divide by the number of sessions you want to see per month
That’s your minimum sustainable rate.
Notice I said “sessions you want to see” - not “sessions you could theoretically cram into your schedule.” If you want to see 20 clients a week and take actual vacations, calculate based on that.
Why therapists resist this.
When I walk therapists through this calculation, they often land on a number higher than what they’re currently charging. And then the panic sets in.
“No one will pay that.” “I’ll lose all my clients.” “That’s more than other therapists in my area charge.”
Here’s what I know: there are therapists in your area charging more than you, seeing full caseloads. The difference isn’t their credentials or their experience. It’s their confidence and their clarity.
The real barrier is internal.
Most pricing problems aren’t business problems - they’re money story problems. The messages you absorbed growing up about money, worth, and who gets to have nice things. The implicit lessons from grad school that therapists should sacrifice. The guilt about charging for help.
This is why I spend the first two weeks of my intensive coaching program on money mindset before we ever touch strategy. You can know what to charge and still not be able to do it if your internal wiring is fighting you.
What to do with your number.
Once you’ve calculated your sustainable rate:
Say it out loud. Ten times. Notice what comes up.
Practice stating it without apologizing, explaining, or immediately offering a discount.
If there’s a gap between your current rate and your sustainable rate, make a plan to close it.
Maybe that means raising your rate for new clients immediately. Maybe it means a gradual increase for existing clients. Maybe it means having some hard conversations. But you can’t build a sustainable practice on an unsustainable rate.
Ready to run your numbers? Use the Private Pay Rate Calculator - it factors in taxes, time off, and the expenses most therapists forget.