If you’re wondering how much should I charge as a therapist? you’re not alone. Fee setting is one of the trickiest aspects of private practice, and many therapists struggle to know what’s fair, ethical, and financially sustainable.
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Maybe you’ve had this happen: A client casually tells you at the end of their session, “Oh, I won’t be here next week.” Or they cancel just before your 48-hour cancellation window, leaving you with an unpaid gap in your diary. Suddenly, you’re out of pocket, and to compensate, you take on more clients, work extra hours, and push yourself harder – only to end up exhausted.
To compensate, some therapists try to prevent these issues by introducing stricter policies, such as a cancellation charge a week in advance, but that can feel just as difficult to implement and may not sit well with every client.
So how do you set your therapy fees in a way that truly covers your costs? How do you make your private practice sustainable without having to rely on long cancellation charges to balance the books? And how can you ensure your pricing allows for the natural ebb and flow of client attendance – holidays, illnesses, and those inevitable gaps in the diary?
The truth is, fee setting isn’t just about picking a number that sounds reasonable. It’s about making sure your practice is financially solid so that you can focus on your clients without worrying about whether you can pay your bills. In this blog, we’ll explore how to set your fees with confidence, why pricing affects both you and your clients, and the common mistakes therapists make when deciding what to charge.
Should You Set a Longer Cancellation Policy?
I recently saw a therapist ask if it would be reasonable to set a cancellation policy several weeks in advance. Their concern was that when clients cancel at short notice, it’s impossible to fill their usual slot. And on the surface, that makes sense: it protects your income.
And some therapists – particularly those working from a psychodynamic approach – operate with strict boundaries. All sessions are paid for with a small allowance for holidays.
Whereas other therapists take a more flexible stance, allowing for occasional missed sessions without penalty.
So the question isn’t just should you set a longer cancellation policy in advance – it’s what policies do you want for your practice?
Private practice means you get to set your own policies. That’s one of the beauties of working for yourself. You can decide what works for you.
Fees: A Business Approach Is An Ethical Approach
This might sound counterintuitive, but setting your fees at a level that sustains your business is actually an ethical approach.
When your fees are too low, or when you rely on strict cancellation policies to plug financial gaps, you risk making your clients responsible for sustaining your practice. That’s not fair to them – or to you.
Instead, fee setting is about making sure your practice is financially solid without putting pressure on clients. Because when your fees truly cover your costs and provide you with stability, you can afford to be flexible without resentment.
So, let’s break this down.
The Mistake Most Therapists Make When Setting Fees
Many therapists (myself included, when I started out) base their fees on what others are charging. They look around, see a range – maybe £40 to £60 per session – and decide, Well, I’m less experienced than that person, so I should charge less.
The problem with this approach? There’s at least three aspects that aren’t being considered here.
1. Everyone’s Circumstances Are Different
First, by setting your fees by looking at someone else’s, you’re not allowing for different financial circumstances and you may be repeating their accounting mistakes. Some therapists don’t need to charge very much because therapy is not their main source of income. Others haven’t dared to put their fees up for years. Or they don’t think they are worth charging more.
Do you want to repeat the same mistakes?
2. You Need to Factor In Your Costs
Second, this approach doesn’t consider your actual costs.
Think about it:
- Supervision
- Room rental
- Insurance
- CPD courses
- Professional memberships
- Business expenses (website, marketing, admin)
3. Cancellations Matter
Third, there’s something else many therapists forget: not every session will be paid for.
Clients cancel. Clients go on holiday. Clients get sick. And unless you’ve factored that into your pricing, those cancellations mean an instant drop in income.
Let’s say you charge £60 per session and aim for 15 clients a week. On paper, that’s £3,600 a month. But if you have a 10% cancellation rate, suddenly you’re making £3,240 instead.
Most therapists don’t account for that loss. They set their fees assuming a full caseload with perfect attendance. And then, when the inevitable cancellations happen, they scramble to fill the gaps.
The Coaching Approach: Charging for Packages Instead of Sessions
One way to sidestep the hourly rate model is to think about therapy the way coaches do. Coaches rarely charge per session. Instead, they offer a package – a set number of sessions over a defined period.
For example, instead of charging for 12 weekly sessions, you could offer a three-month package that includes 10 sessions, with flexibility for breaks.
Some therapists also include additional support, like short check-ins between sessions, email support, or additional resources. It’s a different way of thinking about fees, but it’s worth considering.
Tracking Cancellations: The First Step to Smart Fee Setting
If you’re unsure how cancellations impact your income, start tracking them.
One therapist I worked with in my Therapy Growth Group kept a weekly record of her figures. She quickly saw that, on average, 10% of her appointments were cancelled. That gave her the data she needed to adjust her fees accordingly.
Do you know your own cancellation rate? If not, look back at your diary over the past six months and work it out.
The Real Cost of Undercharging
I see posts all the time from therapists saying they can’t afford their room rental and so they’re switching to online work. But often, what they’re really saying is, I can’t charge more or I won’t get clients.
Have you ever tested that assumption?
Private practice is a business. You need to bring in enough to cover your costs and make a profit – otherwise, you’re working for free. And that profit isn’t just about your take-home pay. It’s also your buffer for quieter months.
December, for example, is notoriously unpredictable. Some therapists are swamped. Others see a drop in clients as people get busy with holiday preparations. If you haven’t built a financial cushion into your fees, those fluctuations hit hard.
“Maths or Drama?”
I once heard a coach say, it’s maths or drama.
The drama looks like:
- Stressing over cancellations
- Trying to enforce stricter policies
- Feeling resentful when clients cancel
The maths looks like:
- Setting fees that account for cancellations
- Building in a buffer for quieter months
- Reviewing (and increasing) your rates annually
Overcoming the Discomfort of Charging More
Let’s be honest – raising fees can feel really uncomfortable. We worry that clients won’t be able to afford it. We feel guilty, like we’re profiting off people’s struggles.
And there’s that ever-present voice in the back of our heads: What if I raise my fees and nobody books in?
But truthfully:
- Clients who truly value your work will pay for it.
- If you charge more, you can see fewer clients and still earn the same income.
- The clients who book with you at a higher rate are often more committed to the process.
I once worked with a therapist who attracted a large number of clients but was completely burned out. She was afraid to charge more. We gradually raised her rates, reduced her caseload, and now she’s earning more while seeing fewer clients. She has taken control of her diary meaning she now has time for self-care and CPD.
And she’s not alone. I’ve seen this shift happen again and again.
How Much Should I Charge as a Therapist?
So, if you are asking ‘How much should I charge as a therapist?’ remember that fee setting isn’t just about numbers. It’s about mindset. It’s about valuing your work and giving yourself the financial security to continue doing it long-term.
So, I’ll leave you with this question:
Are you making your pricing decisions based on maths – or drama?
If you want to work through your pricing strategy in a way that actually works for you, I’d love to help. My Therapy Growth Group provides support, training, and practical tools to help therapists build sustainable, ethical practices.
You can check out my fee calculator here to get started.
And if this post resonated with you, I’d love to hear your thoughts! Have you struggled with setting fees? Let me know in the comments.