How to raise your freelance rates (with an email template)
Most freelancers raise their rates too rarely and too apologetically. Costs go up, skills improve, and the rate stays where it was three years ago because the conversation feels awkward. It doesn't need to be. Here's how to decide on a new rate, tell clients and handle the replies.
Updated 9 October 2026 · tmcmoney
Signs it's time
- You're fully booked or turning work away.
- Nobody has pushed back on your price in months. That often means it's too low.
- Your costs have risen: software, insurance, equipment, rent, living costs.
- You've added skills, results or a portfolio that clients value.
- You haven't changed your rate in over a year.
- Your best clients pay the same as your most demanding ones.
Work out the new rate
Start with what you need, not what you fear clients will say.
- Target income. What you want to earn in a year before tax, plus business costs: software, equipment, insurance, accountant, pension, training.
- Billable days. Take 52 weeks, remove holidays, bank holidays, sick days and admin and sales time. Many freelancers find they bill far fewer days than they work.
- Divide. Target income plus costs, divided by billable days, gives the day rate you need.
Example (made-up figures): £45,000 income + £7,000 costs = £52,000. 46 working weeks × 4 billable days = 184 days. £52,000 ÷ 184 = about £283 a day.
Then look at the market: what similar freelancers charge, what clients pay agencies, and what the work is worth to the client. If the work brings them significant revenue or saves them significant cost, your rate can reflect that.
New clients first
The easiest place to raise rates is with new clients, who have no "old price" to compare against. Put the new rate on your website, proposals and rate card from today. If new clients accept it without blinking, you have your answer for existing clients too.
Existing clients: give notice
Check your contracts first. Some fix prices for a term or require a notice period for changes. If yours doesn't, 30 to 60 days' notice is fair and professional. Tell clients in writing, before their next project or renewal, not halfway through a job you've already quoted.
Think about who gets what:
- Great clients you want to keep: a smaller rise, or a later start date as a thank-you.
- Clients who take a lot of time for little pay: the full rise. If they leave, you free up time for better work.
- Retainers: raise at renewal, and consider adjusting scope rather than only price.
The email template
Subject: My rates from 1 January
Hi Sam,
Thanks for another good year working together. I've really enjoyed the [project] work.
I'm writing to let you know that from 1 January my day rate will be £320 (currently £280). Anything booked before then stays at the current rate.
The new rate reflects [the specialist work I now do / rising costs / the results we've seen on recent projects], and lets me keep giving your projects the time and attention they need.
If you'd like to book anything in at the current rate before the change, just let me know. Happy to talk it through if that's useful.
Best wishes,
Your name
Notice what's missing: no apology, no long justification, no "I hope this is OK". State it clearly, give notice, offer a way to lock in the old rate, and move on.
Handling replies
"That's more than we budgeted"
Offer to adjust scope, not price: "I understand. We could keep within the budget by dropping the monthly report and doing it quarterly instead."
"Can you keep us on the old rate?"
Decide in advance. You might say yes for a fixed period (three months), for a large booking, or not at all. If you agree, put the end date in writing.
"We'll have to look elsewhere"
Sometimes that's the right result. Be gracious: "I understand, and thanks for the work so far. If anything changes, I'd be glad to help." Some clients come back after trying cheaper options.
Silence
Silence usually means acceptance. Confirm the new rate on your next quote or invoice.
Make it routine
Review your rates every year at the same time, such as January or the start of the tax year. Small, regular rises are easier for everyone than a big jump after years of standing still. Put a line in your terms saying rates are reviewed annually with notice, and the conversation becomes routine rather than personal.
Don't forget the paperwork
Update your rate card, proposal templates and contract schedules. If late payment is part of the problem, make sure your terms say when invoices are due. For business clients, GOV.UK explains that you can charge statutory interest on late payments of 8% plus the Bank of England base rate, unless your contract sets a different rate.
Scripts for every pricing conversation
The Pricing Handbook is a value-based pricing kit with packaging worksheets, discovery questions, raise-rate scripts and objection handling for freelancers and small studios. Pay once on Gumroad and download straight away.
Frequently asked questions
How often should freelancers raise their rates?
Review them at least once a year. Small, regular rises are easier for clients to accept than a large increase after several years.
How much notice should I give clients before raising my rates?
Check your contract first. If it doesn't set a notice period, 30 to 60 days in writing is fair and professional.
Should I raise rates for existing clients or only new ones?
Start with new clients, which tests the new rate. Then give existing clients notice, perhaps with a smaller or later rise for the clients you most want to keep.
More guides
- The freelance quote checklist: 15 things to include before you hit send
- Common regex patterns: 15 tested examples with explanations
- All guides
General information, not legal, tax or financial advice. Check the official sources linked above before you rely on them.