Rate increase letter template
Announce a rate increase professionally to existing clients: two tone variants (warm and businesslike), transition arrangement and practical timing tips.
Raising your rate with existing clients feels risky, but postponing costs money every year. This free letter template contains two ready-made variants: a warm version for long-term clients (with thanks and personal justification) and a short businesslike version for the rest of your client base.
Both variants include a fair transition arrangement — current agreements and approved quotes keep the old rate — plus a tips section: announce 1–2 months ahead, index annually in small steps and do not get defensive.
What's inside?
- Variant 1: warm letter for long-term clients
- Variant 2: short businesslike announcement
- Transition arrangement for current agreements built in
- Tips: timing, annual indexation and tone
- Works in Word, Google Docs and LibreOffice
Frequently asked questions
How far in advance should I announce a rate increase?
At least 1 to 2 months. That gives clients budget room, prevents invoice surprises and is simply professional. For annual contracts: announce before the renewal date.
Can I just raise my rate?
For new assignments, always. For current contracts, what you agreed applies: with an indexation clause you follow it; without one you need the client's consent for the running contract.
What percentage increase is common?
Annual indexation of 3–7% is rarely questioned. Bigger jumps (10%+) are fine, but justify them with increased costs, specialisation or market level, and give long-term clients a more generous transition period.
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