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