One of the most common questions I get from therapists starting or growing a private practice is:
“How much should I charge for sessions?”
It’s not just a financial decision—it’s an ethical, psychological, and business decision all wrapped into one. In this post, I’ll walk you through how to set your fees with confidence, avoid common mistakes, and make sure your rates reflect the true value of your work.
Why Your Rate Matters (More Than You Think)
Your session fee sends a message to your clients—and yourself—about the value of your time and expertise. It also determines how sustainable your practice will be.
If you undercharge, you risk burnout.
If you overcharge without understanding your niche or local market, you may struggle to fill your caseload.
The goal is to find a rate that’s:
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Competitive in your area
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Aligned with your specialty
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Supportive of your financial goals
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Ethically appropriate for the population you serve
Step 1: Know the Going Rate in Your Area
Search therapist directories like:
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Psychology Today
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TherapyDen
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Open Path (for sliding scale ranges)
Look for therapists with similar credentials and specialties. In major metro areas, private-pay rates typically range:
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LMFT / LCSW / LPCC: $120 – $180
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Psychologists: $150 – $250+
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Coaches / Non-licensed: $80 – $200 depending on niche
Use this as a ballpark—not a ceiling.
Step 2: Factor in Your Expenses
Don’t set your fee without knowing your break-even point.
Here’s what you should account for:
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Rent or office space
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EHR (like SimplePractice or TherapyNotes)
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Liability insurance
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Licensing fees & CEUs
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Taxes (set aside ~25-30% of income)
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Marketing / website costs
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Supervision (if pre-licensed)
If your expenses are $3,000/month and you want to work 20 client hours/week, you’d need to charge at least $90/session just to stay afloat. If you want to save, invest, and grow? You’ll need more margin.
Step 3: Pick a Model – Insurance vs Private Pay
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Insurance-Based Practice
Your rate is determined by the contracted amount with each insurance. You may be paid $65–$105 per session, depending on the plan and credentials.
Pro: Easier to fill your caseload
Con: Less flexibility, more paperwork, lower rates -
Private Pay Model
You set your own rate.
Pro: More income per session, less admin
Con: Requires stronger marketing and niche clarity
Many therapists use a hybrid model—taking a few insurance plans while building a private-pay base.
Step 4: Set—and Stick to—Your Boundaries
Avoid these common fee-setting mistakes:
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Basing your fee on what you would’ve been able to afford years ago
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Apologizing for your rate
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Over-discounting or sliding too often
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Never reassessing as your experience and demand grow
If you want to offer affordable services, consider:
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Pro bono slots with a clear limit
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Referring to lower-cost providers
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Group therapy or coaching programs
Bonus: Scripts for Talking About Your Fee
When a client asks, “What’s your rate?”
“My fee is $150 per 50-minute session. I do have a few sliding scale spots available based on financial need and availability—would you like me to tell you more about those?”
When you’re raising your rate:
“Starting July 1st, my fee will increase to $160. This adjustment reflects my ongoing training, practice costs, and commitment to offering high-quality care. I want to give you plenty of notice and I’m happy to talk it through.”
Final Thoughts: Your Fee Is a Clinical Tool
It impacts your energy, your boundaries, and your ability to stay in this work long-term.
Setting the right rate isn’t selfish—it’s responsible.
Want Help Structuring Your Practice?
At Advantage Coaching LLC, I help therapists get clear on the business side of private practice—fees, marketing, growth, and mindset. If you’re stuck on what to charge or how to transition to private pay, let’s work through it together.
👉 Book a free consult today and start building a practice that truly supports you.
