How to Raise Your Rates with Existing Clients

Every freelancer knows they should raise their rates. Most never do — at least, not with the clients they already have. It's awkward. You don't want to lose the client. You don't want them to think you're greedy. So you keep charging €40/hour for work that's worth €60, and you quietly resent the client for not noticing you've gotten better.

This is backwards. Raising your rates isn't just about money — it's about keeping your business alive. If your costs rise 5% a year and your rate doesn't, you've taken a pay cut. Do that for five years and you're earning 25% less in real terms for the same work.

Here's how to raise your rates with existing clients without losing them.

When to raise rates

Annually, at minimum. Pick a date (your business anniversary, the new year, a contract renewal point) and raise rates every year. This normalises the conversation — clients expect it, and you don't have to justify each increase from scratch.

When your costs rise. If your rent goes up, your software bills double, or your tax burden increases, your rate has to follow. This isn't optional; it's arithmetic.

When you level up. If you've added a significant skill (you learned a new framework, got a certification, shipped a major project) in the last 12 months, your work is more valuable. Charge for it.

When you're booked solid. If you're turning down work because you're at capacity, your rate is too low. Supply and demand: when demand exceeds supply, raise the price.

How much to raise

The standard annual increase is 10–20%. Less than 10% barely covers inflation and doesn't meaningfully change your income. More than 20% risks a client revolt unless you've clearly leveled up.

For a client paying €40/hour, a 15% increase is €46/hour. That's €6/hour — small enough that most clients won't blink, large enough that at 100 billable hours/month it's €600 more in your pocket.

If you've been undercharging for years and need a larger correction (30%+), do it in two stages: 20% now, 15% in six months. A single 40% jump will lose clients; two moderate increases won't.

The email templates

The key to a rate increase email: be direct, give notice, frame it as normal, and don't over-apologise. Here are three templates for three situations.

Template 1: The standard annual increase

Subject: Rate update from [Your Name] — effective [Date]

Hi [Client],

I wanted to give you advance notice that my rates will increase on [Date, ~60 days out]. Your rate will go from €[current]/hour to €[new]/hour.

This reflects the standard annual adjustment that keeps my work sustainable — covering rising costs and allowing me to continue giving your projects focused, high-quality attention.

Any work in progress before [Date] will be billed at the current rate. New projects starting after that date will use the new rate.

It's been great working with you, and I'm looking forward to continuing.

Best, [You]

Template 2: The "I've leveled up" increase

Subject: Update on my rates + what's new

Hi [Client],

Quick note: my rates are going up on [Date]. Your rate will move from €[current] to €[new]/hour.

In the last year I've [completed certification X / shipped project Y / added capability Z], which means I can bring more to your projects than before. This increase reflects that.

Current projects stay at the old rate through completion; new work from [Date] uses the new rate.

Always happy to hop on a call if you'd like to discuss.

[You]

Template 3: The "I'm repositioning" increase (larger jump)

Subject: Changes to my rates and how we work together

Hi [Client],

I'm writing to let you know about a change to my rates, effective [Date]. Going forward, my rate will be €[new]/hour, up from €[current].

I've been moving toward [specialism / higher-value work], and this rate reflects the level of work I'm now doing across all my clients. I'd love to keep working with you at this rate — but I understand if it doesn't fit your budget right now.

If now isn't the right time, we can wrap up any in-progress work at the current rate. If it does work, I'm excited to keep going.

Either way, thank you for the work we've done together.

[You]

What to do if they push back

Some clients will object. Here's how to handle it:

"We can't afford that increase."

"I understand. We can keep the current rate for the project we're working on, and use the new rate for anything new. Or if budget is tight, I can reduce scope on future projects to fit — but I can't hold the rate indefinitely."

"We've always paid €40 — why the change?"

"Costs have gone up across the board, and the work I'm doing now is more experienced than when we started. €[new] is still below what most [your specialism] freelancers charge in [your market]. I wanted to give you plenty of notice so you can plan."

"We'll have to find someone else."

"I understand. I'll finish the current project at the existing rate, and we can wrap up cleanly. If things change, the door's always open."

What if they leave?

Some clients will leave when you raise your rate. This is fine. The client who leaves over a €6/hour increase was never going to pay you what you're worth long-term. They were paying you the old rate because it was cheap, not because they valued you. Letting them go frees you to find clients who pay the new rate — and those clients exist.

The freelancers who never raise their rates end up with rosters full of low-paying clients they resent. The freelancers who raise rates annually end up with clients who respect their work and pay for it. Short-term awkwardness, long-term better business.

Key takeaways

For how to know if you're undercharging in the first place (so you know how big the increase should be), read are you undercharging. For the broader framework of what your rate should be, see how to set your freelance rate. And to get a market-checked rate to aim for, use the calculator.