How Much to Raise Freelance Rates: Inflation and Wage Data Since 2019
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If you set your freelance rate in 2019 and have not changed it, consumer prices have since risen 30.6 percent, according to the Bureau of Labor Statistics (BLS) Consumer Price Index. Wages and salaries for private-industry employees rose 31.0 percent over about the same period, by the BLS Employment Cost Index. An unchanged rate buys almost a quarter less than it did, and it has fallen behind what employers pay for comparable work. The same comparison for a rate set in 2024 shows a gap of 6 to 7 percent.
These national figures tell you how far an unchanged rate has drifted. They do not tell you what to charge. That comes from your own costs, hours and clients, and the sections below show how to build the number and propose it.
How far an unchanged rate has fallen behind
The table compares the latest data with the same point in the year you last set your rate. Prices use the CPI for All Urban Consumers (CPI-U) for August of each year. Wages use the Employment Cost Index (ECI) for wages and salaries of private-industry workers in the second quarter.
| Rate last set in | Consumer prices since then (Aug to Aug 2026) | Private-sector wages since then (Q2 to Q2 2026) | Rate needed to keep pace with prices, starting from $50/hour |
|---|---|---|---|
| 2019 | +30.6% | +31.0% | $65.30 |
| 2020 | +28.9% | +27.3% | $64.45 |
| 2021 | +22.4% | +22.9% | $61.20 |
| 2022 | +13.1% | +16.3% | $56.55 |
| 2023 | +9.1% | +11.2% | $54.55 |
| 2024 | +6.4% | +6.8% | $53.20 |
| 2025 | +3.4% | +3.1% | $51.70 |
Source: BLS, CPI-U all items, U.S. city average, not seasonally adjusted (series CUUR0000SA0), and ECI wages and salaries, private industry workers (series CIU2020000000000I). The last column multiplies $50 by one plus the price change; substitute your own rate.
Prices and wages answer different questions. The CPI measures what your own spending costs. If your rate has not kept up with it, your income buys less. The ECI measures what employers pay for the same jobs over time, so it is a rough guide to how the market price of labor has moved. Over these years the two moved closely together. For a rate set in 2022 or 2023, wages have since risen faster than prices.
The pace has slowed. Annual average consumer prices rose 8.0 percent in 2022, then 4.1 percent in 2023, 2.9 percent in 2024 and 2.6 percent in 2025. In August 2026 prices were 3.4 percent higher than a year earlier, and private-sector wages in the second quarter of 2026 were 3.1 percent higher than a year earlier. A yearly review that tracks those figures keeps a rate from drifting far.
Your costs may have moved differently. Software subscriptions, insurance, equipment and health coverage do not rise at the CPI rate. For services alone, the CPI rose 3.1 percent in the year to August 2026. Use your own records for the costs you actually pay.
Build the proposed rate from your own records
Use an annual revenue requirement that includes the business costs and owner-compensation target you intend it to fund, without counting the same cost twice. Divide by billable capacity based on time records and likely demand. The hourly rate calculator helps organize those inputs; it does not establish a market rate or predict client acceptance.
Illustrative scenario: a freelancer charges $65/hour, expects 1,200 billable hours in a year, and chooses an $84,000 annual revenue requirement. The current rate produces $65 × 1,200 = $78,000, leaving a $6,000 gap against that requirement. At the same hours, the planning rate is $84,000 ÷ 1,200 = $70/hour.
The $70 figure follows from these assumptions. It is not an industry benchmark. It also does not solve a capacity shortfall if only 1,000 hours are sold: $70 × 1,000 = $70,000. Run both the price and the hours before selecting the offer.
Test what happens if some hours are lost
A price increase can change demand. Compare more than the optimistic case:
| Assumed outcome | Annual billed hours | Rate | Gross annual revenue |
|---|---|---|---|
| Current arrangement | 1,200 | $65 | $78,000 |
| Proposed price, same hours | 1,200 | $75 | $90,000 |
| Proposed price, 10% fewer hours | 1,080 | $75 | $81,000 |
| Proposed price, 20% fewer hours | 960 | $75 | $72,000 |
At $75/hour, matching the old $78,000 revenue takes $78,000 ÷ $75 = 1,040 hours. That allows a loss of 160 hours, or 13.33% of the old volume, before gross revenue falls below the old result. Meeting the separate $84,000 target takes 1,120 hours. These thresholds assume the same mix of work and compare revenue before expenses and tax; compare contribution after variable costs if those costs change.
This is a sensitivity calculation, not an estimate of how many clients will leave. Losing hours can free capacity, but replacement work and collection of invoices are not guaranteed.
Separate a rate increase from a scope increase
Suppose a $1,500 monthly package originally took 20 hours. Its effective gross rate was $1,500 ÷ 20 = $75/hour. If extra pages and revisions now take 28 hours, the unchanged fee produces $53.57/hour. Preserving the old $75/hour would require $2,100 for that expanded scope, or a return to a 20-hour scope at the old fee.
Describe the added deliverables and expected time in the proposal. That makes it possible for the client to choose between a larger package and a smaller scope. See the scope-change guide for a change-order example.
An existing-client proposal
Choose a proposed effective date that fits the agreement and the client’s planning cycle. There is no universal notice period or recommended percentage increase in this guide.
Hi [Name],
I’d like to propose [new rate or package fee] for [specific future work] starting [proposed date]. It covers [deliverables and revision allowance]. Our currently agreed work remains under its existing terms.
The proposed change reflects [accurate reason: revised scope, costs or service]. Please confirm whether you’d like to proceed with this scope and price. If the budget is fixed, I can also quote a reduced scope for comparison.
Include only reasons you can substantiate. Do not claim measured results or cost increases you have not documented. Save the agreed scope, price and effective date together before billing under the new terms.
Responses to different outcomes
| Client response | Next step |
|---|---|
| Accepts the proposal | Record the agreed terms and update future quotes and invoices. |
| Requests a smaller budget | Quote specific removed deliverables or a different schedule; recalculate the time and cost. |
| Wants the old rate | Compare the offered work with your planning floor and existing commitments before deciding. |
| Does not reply | Follow up for a decision; do not treat silence as acceptance. |
| Declines | Plan any transition under the existing agreement and model the lost revenue. |
For a new lead, quote the current price with clear deliverables, timing, exclusions and payment terms. A project fee and an hourly offer can both work; compare them using the project-pricing walkthrough.
After the change, record accepted and declined quotes, actual hours, costs and collected revenue. Use that evidence for the next review. A calendar reminder can prompt a review, but elapsed time alone does not establish the right increase. These are commercial planning examples, not legal or tax advice.
Sources
Data were retrieved from the BLS Public Data API on October 4, 2026.