How to raise your freelance rates (with a rate increase letter)

By SoloWOS teamPublished October 19, 2026

IN SHORT

Raise freelance rates with 30 to 60 days' written notice, the new rate, its start date and a one-line reason; new clients pay the new rate right away. A 20% raise still earns more unless you lose over 1 in 6 billed hours. US consumer prices rose 3.7% in the 12 months to September 2026 (BLS).

Prices and limits as of October 26, 2026.

Key takeaways

A raise of R% pays off as long as you lose less than R / (100 + R) of your billed hours: 16.7% for a 20% raise.
A rate left unchanged for a year lost about 3.6% of its buying power at September 2026's 3.7% CPI-U inflation.
Give existing clients 30 days' notice for small accounts and 60 days for retainers or large clients.
Grandfathering (keeping a client on the old rate until a set date) softens the change without making it permanent.
Quote new clients at the new rate from the day you decide, so the change starts paying immediately.

Most freelancers raise rates too rarely because the fear is losing clients. The math below shows how many you can lose and still come out ahead. It's part of the winning clients hub; to find the rate itself, use the freelance rate calculator.

The math: how many hours can you lose and still earn more?

WORKED EXAMPLE

A 20% raise from $90 to $108 an hour

You bill 100 hours a month at $90 = $9,000. After raising to $108, a client who gave you 15 hours a month leaves. You now bill 85 hours x $108 = $9,180: $180 more income and 15 hours freed up for a new client at the new rate. Break-even is 83.3 hours (9,000 / 108), so you can lose up to 16.7 hours, about 1 hour in 6, before the raise costs you money.

Most billed hours you can lose before a raise reduces income
Rate increase	Break-even share of current hours	Hours you can lose (of 100)
10%	90.9%	9.1
15%	87.0%	13.0
20%	83.3%	16.7
25%	80.0%	20.0
30%	76.9%	23.1

Formula: break-even hours = current hours / (1 + increase). It ignores the value of the hours you get back, which is often the point: those hours go to better-paying clients or to the work you've been putting off.

How much to raise

Inflation sets the minimum. The Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers rose 3.7% in the 12 months to September 2026 (BLS, October 14, 2026). A rate you haven't touched in that time buys about 3.6% less (1 / 1.037). A raise that only matches inflation keeps you level; it isn't a raise.

Employers are moving too. In the 12 months to June 2026, wages and salaries for US private-industry workers rose 3.1% and total compensation costs 3.3%, not seasonally adjusted (BLS, Employment Cost Index). If your clients' own staff got raises of that size, a freelancer who stays flat is getting cheaper every year without saying so.

Demand sets the rest. If you're booked out for more than a month, turning down work, or hearing "that's very reasonable" on calls, a 15% to 25% increase is usually safe. If you're winning fewer than one proposal in four, fix the offer before the price.

When and how much notice

Notice periods by client type
Client	Notice	When to send
New clients and new proposals	None	From the day you decide
Occasional project clients	30 days	Before their next project, not in the middle of one
Monthly retainers	60 days, or what the contract says	At least one billing cycle before the change
Large or agency clients	60 to 90 days	Before their budgeting period
Projects in progress	Don't change	Finish at the agreed price; new rate for the next phase

Grandfathering options

Ways to handle existing clients
Option	How it works	Good for
Same date for everyone	Everyone moves to the new rate on one date	Small raises and simple setups
Grace period	Existing clients keep the old rate for 3 to 6 months	Clients you want to keep without a long discount
Step-up	Half the raise now, the rest in 6 months	Large raises with loyal clients
Permanent legacy rate	One client stays on the old rate	Rarely worth it; set an end date instead

Rate increase letter to copy

Rate increase letter

Subject: Updated rates from [start date]

Hi [name],

Thank you for working with me on [project or retainer] this year. I'm writing to let you know that from [start date], my rate will be $[new rate] an hour (currently $[old rate]). [For retainers: your monthly retainer will be $[new amount] from the [month] invoice.]

The change reflects [the work I now take on / higher costs / demand for my time], and it lets me keep giving your projects the same attention.

[Optional grace period: Because you've worked with me since [year], your current rate stays in place until [date].]

Work already agreed stays at the current price. If you'd like to plan anything before the change, just reply and we'll schedule it.

Thanks,
[your name]

Keep it short. No long justification, no apology and no question mark at the end of the rate; the letter informs, it doesn't ask permission. If a client pushes back, you can offer a smaller scope at the new rate rather than the old rate.

Raise prices for new clients first

The lowest-risk raise is the one existing clients never see. From the day you decide, every new proposal and every new client gets the new rate. Within a few months you'll know whether new clients accept it: if your win rate on proposals holds, move existing clients over with notice; if it drops sharply, you've learned that without risking a single current client. Many freelancers keep new-client rates a step above existing-client rates all the time, and move existing clients up once a year.

What to say when a client pushes back

"I understand. To keep the budget the same, we could move to [fewer hours / a smaller monthly scope] at the new rate." Cutting scope protects the rate.
"I can keep your current rate until [date], then the new rate applies." A grace period with an end date, not a permanent exception.
"If the new rate doesn't work, I'm happy to recommend someone who fits the budget." Said calmly, this usually ends the negotiation; when it doesn't, the hours you get back go to a client at the new rate.
Avoid "I'm sorry" and "I know it's a lot". They invite the client to argue the number down.

Update your rates in SoloWOS

In Time Tracking, change the hourly rate on each project from the start date. Invoices built from unbilled time use the project's rate.
Update the line items in your saved proposal templates, so every new proposal starts at the new price.
If a client has a grace period, leave their project on the old rate and add a task with the end date to your board.
Send the next invoice as usual; you can send invoices clients pay by card from the time entries.

Questions

How often should freelancers raise their rates?

Review once a year at minimum, at the same time each year so clients expect it. Raise sooner when you're booked out for more than a month or keep turning down work. Many freelancers raise new-client rates more often than existing-client rates.

Should I explain why I'm raising my rates?

One sentence is enough: experience, costs or demand. A long justification reads as asking for permission and invites negotiation. Clients care more about the date and the new number, so put those first.

What if a client says they can't afford the new rate?

Offer a smaller scope or fewer hours at the new rate, or a short grace period. If neither works, part on good terms and refer them to someone at their budget. The table above shows how many hours you can lose and still earn more.

Can I raise rates in the middle of a project?

Not on work already agreed at a fixed price or a quoted rate; that's a contract. Apply the new rate to the next project, the next phase or any change order. For open-ended hourly work, give the same notice you'd give a retainer.

Sources

Facts checked against these sources on October 18, 2026. Rules and amounts change, so confirm them at the source before you file or sign.

Last reviewed: October 18, 2026

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