Break-even churn · 3 scenarios · timing guide · client-side

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Price Increase Calculator

How many clients can you lose and still make more money? Enter your current rate, proposed rate, and client count to find your break-even churn rate instantly.

Corp Tax Rate21%(federal flat rate)

SE Threshold$400(net earnings floor)

FICA Cap 2024$168,600(SS wage base)

Key insight

You can lose 1 clients and still make the same money

Break-even churn rate: 20.0% · Current revenue: $24,000/mo · Proposed: $3,750 (+25%)

Your pricing

Current price (monthly or per project)

Proposed new price

Active clients at current price

Estimated churn %

What % of clients do you expect to leave after the increase?

Client acquisition cost

What it costs to land one new client (ads, time, referral fee, etc.)

raise now

Even at your estimated 15% churn, you net $1,500/month more. You can absorb up to 20% churn before breaking even.

Revenue Change

+$1,500/mo

Annual Impact

+$18,000

Break-even Churn

20.0%

1 clients

Months to Recoup

0.1

if churn occurs

Increase scenarios (at 15% estimated churn)

Current (no change)

$3,000/client$24,000/mo

+7%$3,210/client

-$2,172/mo$21,828/mo

+15%$3,450/client

-$540/mo$23,460/mo

+25%$3,750/clientyour proposal

+$1,500/mo$25,500/mo

Best times to raise your prices

1.At contract renewal — existing terms expire naturally, no awkward conversation
2.January 1 — clients budget annually; a new-year increase is expected and respected
3.After delivering a major win — your value is freshest in their mind
4.When you are turning away work — demand > supply justifies a higher rate
5.With 30–60 days notice — gives clients time to plan without feeling blindsided

Current monthly revenue

current price × active clients

$3,000 × 8

= $24,000

Break-even churn rate

1 − (current price ÷ proposed price)

1 − ($3,000 ÷ $3,750)

= 20.0%

You can lose up to 20.0% of clients and still earn the same revenue

Clients you can afford to lose

active clients × break-even churn rate

8 × 20.0%

= 1 clients

The key insight: a price increase creates a revenue buffer that absorbs some churn

Clients retained (at your churn estimate)

active clients × (1 − estimated churn %)

8 × (1 − 15%)

= 6.8 clients

New monthly revenue

retained clients × proposed price

6.8 × $3,750

= $25,500

Monthly revenue change

new revenue − current revenue

$25,500 − $24,000

= +$1,500

$18,000 annualized

Extra monthly revenue from price increase

retained clients × (proposed price − current price)

6.8 × $750

= $5,100

This surplus pays for replacing any lost clients

Cost to replace lost clients

lost clients × client acquisition cost

1.2 × $500

= $600

Months to recoup lost clients

replacement cost ÷ extra monthly revenue

$600 ÷ $5,100

= 0.1 months

Key insight

The break-even churn rate formula (1 − current/proposed) proves that price increases create a built-in churn buffer. A 25% price increase lets you lose 20% of clients and stay flat. Most freelancers overestimate churn and underestimate how much revenue the increase generates from retained clients.

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Estimates assume all clients pay the same rate. Actual churn varies by client relationship and market conditions. Use alongside qualitative signals like referral volume and utilization rate.