How (and when) to raise your rates
Raising your hourly rate is uncomfortable. Learn the signals it's time, how to approach existing clients without losing them, and how to price new clients differently.
Raising your rate is one of the most uncomfortable conversations a freelancer has to have. You've built good client relationships, delivered solid work, and now you're thinking: is it worth risking the client to ask for more money? The answer is almost always yes—but how you do it matters. This guide tells you when it's time, how to handle existing clients, and how to approach new ones at your new rate without fumbling the negotiations.
How do you know it's time to raise your rate?
You don't need to wait for permission. If one or more of these signals ring true, you're likely undercharging:
Signs you should raise your rate
You're fully booked. If every hour you can spare is already sold, you're leaving money on the table. Raising your rate is a filter: it makes room for better-paying clients and gives you breathing space. You might lose one client, but you'll fill that slot with someone else at the higher rate and end up with more income and less stress.
You've improved. When you set your original rate, you had less experience. You've finished projects, built a portfolio, specialized in a niche, earned testimonials. Your work is objectively more valuable now. The market rewards that. If you were worth €50/hour then and you've delivered 100 projects since, you're worth more now.
The market moved. Check what others in your field, region, and experience level are charging. If you're 20–30% below that range, you're not being undercut—you're undervaluing yourself. Use ZZP Belasting or talk to peers to benchmark your rate in context. Don't chase the highest rate in the market, but don't lag too far behind either.
Raise in cycles, not desperation
Raise your rate every 1–3 years, not every year in response to pressure, and not in a panic because you're struggling. Consistent, small increases are easier to defend than sudden jumps. Your clients expect the market to move; they don't expect you to come back with a 50% increase after two years.
The conversation with existing clients
This is the hard part. You're nervous, and rightly so—you don't want to lose a good client. But here's the reality: if a client drops you over a reasonable rate increase, that tells you they never valued your work much, and you'll be happier not chasing them.
Timing
Raise your rate for a current client after a natural break in work: after finishing a project, at the end of a retainer period, at the start of a new year or a new quarter. Don't spring it mid-project.
The message
Keep it brief and matter-of-fact. No apology, no lengthy justification. Email or a call—whatever feels natural to you:
"Hi [name]. It's been great working with you on [project/timeframe]. My rate is increasing to €[new rate]/hour effective [date], which reflects the market and the value I've developed. I'd love to keep working together at the new rate. Let me know your thoughts."
That's it. You can add a little context—"I've taken on more specialized work" or "This brings me in line with the market for [specialization]"—but you don't owe a detailed defense. You're not asking permission; you're informing.
Sweeten the pill
If you want to soften the increase for a longtime client, offer something small: a small discount on the first project at the new rate, a small retainer discount (€1–2/hour off if they commit to X hours/month), or a free hour of planning per month. Not a massive concession—just acknowledgment that you value the relationship.
What if they push back?
A few responses you might hear:
"That's too much." Acknowledge it without negotiating: "I understand. If it doesn't work for your budget, I'm happy to refer you to someone at your price point. But this is my rate going forward." If they're a good client and you're nervous, you might say: "What rate would work for you, and what would that look like in practice?" But don't undersell. If they ask for €55 and you're asking €75, meeting them at €65 is fair; meeting them at €60 isn't.
"I need to think about it." Perfect. That's a "yes, but I need time." Set a deadline: "No problem. Let's touch base on [date] so you can plan accordingly."
"I'm shopping around for cheaper alternatives." This is honest at least. You can say: "Happy to work with whoever works for you. But if you want to stay, here's the new rate. Whoever is cheaper will likely be less experienced—that's just the math of the market."
Most of the time, they'll accept it. Some will negotiate slightly lower. A few will walk. That's okay. You're making room for better clients and for your own financial stability.
Let ZZP Belasting do the maths
Automatic BTW returns, income-tax forecasts and depreciation — from the invoices you already have.
Try it freeThe indexation clause (protection for the future)
If you're doing retainers or ongoing work, add an indexation clause to your terms. This is a sentence that lets you raise the rate automatically, typically once a year:
"The hourly rate increases by [3–5%] annually on [January 1 / your invoice date], adjusted for inflation or market changes."
This removes the need for an awkward conversation every year. It's normal in consulting and freelance contracts. Put it in your general terms or statement of work, and mention it when you first propose a retainer. Once clients see it in writing, they rarely fight it.
Pricing new clients at the higher rate
Here's the good news: pricing new clients is conflict-free. You don't owe anyone your old rate. Every new conversation is a fresh negotiation.
When you're quoting a new client, quote your new rate. If they ask "I heard you charge less for other clients," you can honestly say: "My rate has increased as of [date]. I'm happy to quote you at the current rate." End of story.
If a prospect pushes back hard on price, ask yourself: Is this a client I want? Someone who leads with price negotiations often leads with scope creep, payment delays, and endless revisions. Someone who says "Is that in the budget?" and books you anyway is usually a better client than someone who agonizes over €5/hour.
Resist the pressure to discount
New clients sometimes say: "If you cut your rate 10%, we'll guarantee 20 hours a month." Resist this. Locking into a discounted rate for volume is how your costs stay low and your stress stays high. If the volume is valuable and genuinely recurring, a small discount (1–3%, not 10%) is defensible, but it's easier not to start than to undo it later.
A worked example
Let's say you've been charging €65/hour for the past two years. You're fully booked, your portfolio is strong, and you've checked the market: freelancers with similar experience in your field are charging €75–€85/hour.
You decide your new rate is €75/hour, effective in six weeks.
For existing clients: You email them this week. Three clients accept without comment. One asks if there's any flexibility; you offer a 5% retainer discount (€71.25/hour) if they commit to 20+ hours per month. They agree. One client says it's out of budget and stops—that's fine, it frees up ~8 hours a week.
For new prospects: You quote €75/hour starting immediately. One prospect balks and says your last bid was "around €65." You stand firm: "My rate is now €75. Happy to work at that rate." They book you.
Result: Your new weekly income is slightly up (you lost one client at 8 hours/week at €65 but gained new projects at €75 and higher hours from the retainer client). Your stress is down because you have breathing room and better pricing.
How often should you raise your rate?
Every 1–3 years is healthy. Once a year if the market is moving fast in your field. Don't raise every year "just because"—that's noise. But do raise every few years to keep pace with inflation and your own growth.
If you're doing a rate review and realize you're 30% below the market, don't try to close that gap in one jump. Do it over 2–3 cycles: increase now by 10–15%, then again in a year. You and your clients will adjust better that way.
When to raise more aggressively
If you've specialized, developed a strong reputation, or shifted to higher-value work (recurring clients, strategic retainers, productized services), you can raise more and more often. Some freelancers raise their rate every year because they're always more in demand than they have capacity.
The reverse is also true: if you're struggling to stay booked or your field is oversupplied, take longer between raises and stay close to the market.
Frequently asked questions
What if I lose clients when I raise my rate?
Should I give existing clients a 'loyalty discount'?
How do I explain a big increase after a long time at the same rate?
What if my client offers me less work to offset the rate?
Raising your rate is an act of respect—for yourself and for the real market value of your work. The discomfort is temporary. The relief of charging what you're worth is permanent. Start setting the right rate, and revisit it every couple of years. When you keep your pricing aligned with your value and the market, you build the freelance income that sustains you long term.