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Should you raise your rates?

The fear is losing clients; the math usually disagrees. Model a rate increase net of the clients you'd expect to lose, and see the attrition you could absorb and still break even.

$16,934
New monthly revenue
+$934/mo
$11,213
Extra per year
7%
Break-even attrition
lose up to this, still break even

Most owners don't raise rates because they fear losing clients. The math usually disagrees. At a 8% increase you could lose up to 7% of your clients and still come out even; anything less is gain. Enter only the revenue you set rates on — private-pay and out-of-network. Insurance-contracted rates don't move when you raise fees. See the effect on every clinician's economics in the full Snapshot.

Decided to raise? Here’s the doing-it part.

The math above is rarely what stops an owner. The client letter is. A few norms that make it easier, then a starting draft you can make your own:

  • Give at least 30 days’ notice (60 is kinder, and some states or panel contracts expect it, so check yours).
  • Pick a natural boundary. January 1 and September 1 are the classic fee-change dates; mid-month raises read as improvised.
  • Don’t over-explain. One sentence of reason is plenty; a paragraph of justification invites negotiation. The letter does the work.
Dear [client name],

I'm writing to let you know that beginning [date: at least 30 days out], my session fee will change from $[current] to $[new].

This is the first adjustment since [year of last raise], and it allows me to keep this work sustainable and to continue showing up fully for our sessions.

If the new fee creates a real difficulty, please talk to me. I'd rather have that conversation than have it be a reason our work ends, and we can discuss options including a transition period.

Our session schedule stays exactly as it is. Thank you, as ever, for the trust you put in this work.

Warmly,
[your name]

A starting point, not a script. Adjust it to sound like you. For panel/insurance fee schedules the rules differ (your contracts control); when in doubt, a quick check with your biller or attorney beats guessing.

That is one seat, roughly. The full read runs every seat, exactly, and puts your three highest-dollar decisions in front of you, each with a drafted first step: $79, one-time.

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Link to this page and attribute it to Keystone Practice:

Keystone Practice. "Should you raise your rates?" https://keystonepractice.co/tools/raise-your-rates
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