Rate increase calculator
The fear says: raise rates, lose clients, earn less. The math says the fear exaggerates. A 25% raise survives losing 20% of your hours before you earn a dollar less, and everything above that line is profit for less work.
What the ledger says
New rate$96per hour
- Extra revenue per year (same hours)
- +$19,200
- Client loss you can absorb
- 16.7%
- Current annual revenue
- $96,000
- New annual revenue
- $115,200
Estimate, not advice
The formula
New revenue = new rate × same hours. Break-even churn = increase ÷ (1 + increase): at +25% you can lose 20% of hours and match today's revenue exactly.
What this ignores
That lost hours often get refilled at the NEW rate (making the real outcome better than break-even), demand elasticity in your niche, and the compounding effect of repeated small raises. It models the worst realistic case.
Field notes
- How do I announce a raise to existing clients?
- Short, factual, with notice: "Starting [date 30-60 days out], my rate is $X." No apology, no justification paragraph. Clients who value the work stay; the ones who leave were paying below your market anyway.
- How often can I raise rates?
- New clients: every time the yes-rate stays above roughly 70-80%. Existing clients: about once a year, with notice. If nobody has pushed back in two years, you are underpriced.
- What if my biggest client refuses?
- The break-even number tells you exactly what the refusal is worth. Also check the client concentration: one client big enough to veto your pricing is a risk problem, not just a rate problem.