When Should You Raise Your Rate?
Four signals — utilization, rejection rate, inflation, and time since last raise — give you a data-driven verdict. Get your suggested rate range, demand premium, annual revenue impact, and a script for telling clients.
Where this fits
This tool lives inside Going 1099 + Trading Income and is most useful for freelancers and employees.
Should You Raise Your Rate?
Raise Now
High utilization + low price resistance = textbook case for an immediate rate increase.
Current Rate
$100/hr
Inflation-Adjusted
$94/hr
Suggested Rate
$115/hr
Annual Impact
+$15,000
Your Rate Data
What you charge today
Starting point for inflation calc
Billable hours ÷ total working hours × 100
% of prospects who said "too expensive"
2024 CPI default: 3.4%
Estimated annual billable hours
Signal Analysis
82% — you are over-committed at your current rate
8% rejections — virtually no price resistance
Your real rate is up 6.9% vs inflation — you are ahead
14 months — approaching the annual raise window
Suggested Rate Range
Transition Strategy
- 1.Announce the new rate ($115/hr) to new clients immediately — zero conversation needed.
- 2.Give existing clients 60–90 days notice on their next renewal or invoice.
- 3.Frame it as an annual adjustment: "My rate is increasing to reflect [skill growth / demand / costs]."
- 4.If a client pushes back, offer to lock the current rate for one more project at $100/hr — then raise.
- 5.Raise your rate on all public profiles (LinkedIn, Upwork, website) the same day.
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