Pricing Structures for Interior Designers: Build Profit into Every Project 

Setting a Foundation for Profit 

Before diving into specific pricing structures for interior designers, it’s important to look at the big picture. The industry average for net profit in design businesses hovers around 3%, but top-performing firms aim for 14–15%. The difference often comes down to a few key choices around pricing, margins, and operations. 

That starts with confidence: knowing your time, talent, and intellectual property are worth real money. From there, it’s about creating pricing structures that support profitability and growth. 

Core Pricing Models to Consider 

There’s no one-size-fits-all model, but the most successful design businesses tend to blend a few different approaches depending on the project size, scope, and phase. 

Here are some pricing structures interior designers are using to stay profitable and professional: 

1. Hourly Rates 

Charging hourly for time is a staple in the industry, especially at the start of a client relationship or for open-ended projects. Hourly rates can — and should — vary depending on who’s doing the work and what kind of work it is. For example, a firm principal might charge $175–$200 per hour (or more), reflecting their expertise, strategic oversight, and ability to move projects forward efficiently. Junior designers or support staff may be billed at a lower rate for tasks like sourcing or documentation. The key is aligning your rates with the value being delivered at every level.

ALSO READ: Studio Designer vs Harvest for Interior Designers: Which is Better for Time Tracking and Time Billing?

2. Flat Fees 

Flat fees work well when you have a clearly defined scope and want to offer clients simplicity and predictability. For example, you might charge a flat fee for a room design or a specific project phase like concept development. These fees are often based on estimated hours and effort, but presented as one clear number. 

Designers often use flat fees: 

• For single-room or bundled room packages 
• For project phases like design or installation 
• As part of a hybrid model — flat for design, hourly for management 

Flat fees can streamline the client experience and reduce time spent tracking hours, but make sure you build in buffer time and outline clear deliverables to avoid scope creep. 

ALSO DOWNLOAD: Flat Fee Calculator for Interior Designers

3. Square Footage Pricing 

Great for larger projects or clients who want simplicity. Charging $10–$25 per sq ft provides a scalable, easy-to-understand framework that can cover design work, planning, and management. 

4. Phase-Based Fees 

Instead of one flat number, break projects into stages, like concept development, design execution, procurement, and installation. Charging per phase gives clients transparency and allows you to manage scope and timeline more easily. 

5. Minimum Project Spend 

Want to ensure you’re only taking on high-value work? Establish a minimum project budget—typically between $150,000–$250,000. This sets the tone from the beginning and ensures your time and resources are focused on projects that move your business forward.

Comparing Pricing Structures for Interior Designers

Pricing Model	Pros	Cons
Hourly Rates	• Flexible and easy to implement  • Ideal for early-stage or open-ended projects  • Compensates for time spent on changes	• Can lead to client anxiety over unclear final costs  • Requires detailed time tracking  • May reward inefficiency if not managed carefully
Flat Fees	• Predictable and clear for clients  • Streamlines billing and reduces admin time  • Reflects value of deliverables	• Risk of undercharging if scope isn’t clear  • Requires accurate estimating and strong boundaries  • Can lead to scope creep
Square Footage Pricing	• Scalable and easy to understand  • Suits large projects with consistent deliverables  • Aligns pricing with project size	• Doesn’t account for design intensity variations  • May need adjustment for irregular spaces  • Can feel impersonal without clear design value
Phase-Based Fees	• Breaks project into manageable chunks  • Helps manage scope and timelines  • Improves cash flow and check-ins	• Requires a clear process and client education  • Can be complex to set up  • May need more admin to manage multiple billing stages
Minimum Project Spend	• Filters out small, low-revenue jobs  • Ensures alignment with revenue goals  • Sets clear expectations on scale	• May exclude creatively fulfilling small projects   • Requires confidence to enforce  • Needs strong marketing to attract qualified leads

Building in Fees That Protect Your Time 

It’s not just about your design time. The behind-the-scenes work (travel, sourcing, project management) needs to be priced in too. 

• Consultation Fees: Raise your initial consultation from $250 to $500+ to reflect the depth of value clients receive even in the first conversation. 
  
• Trip & Management Fees: Bill separately for travel, vendor meetings, and ongoing project oversight to ensure you’re not losing time (and money) outside of design work. 
  
• Procurement Services: Consider becoming the exclusive procurement agent for each project and implement a markup model. This can become a meaningful and consistent revenue stream. 

Handling the “What Am I Being Charged For?” Conversation 

At some point, almost every designer faces the awkward question: 
“Wait, what exactly am I being charged for?” 

This is where clarity and confidence in your pricing structure become your best tools. When you can clearly explain the strategy behind your fees, whether it’s an hourly rate for design time, a flat fee for a project phase, or a markup on procurement, you’re not justifying a number, you’re reinforcing the value you bring to the table. 

Clients aren’t just paying for your time; they’re paying for your design expertise and understanding of space and proportions, your ability to avoid costly mistakes, your project management skills for complex processes, and your access to trusted vendors and tradespeople they wouldn’t have on their own. 

When you frame it that way, pricing becomes less about defending every hour and more about helping clients understand the full scope of what you deliver. 

Contracts That Support Long-Term Growth 

Transparent pricing structures also rely on strong contracts that set expectations and protect your time. 

Here are a few must-haves: 

• Annual Rate Increases: Add a clause that allows for small rate increases each year. It keeps your pricing aligned with inflation and your growing expertise. 
  
• Retainer or Deposit System: Collect a deposit up front to reserve time and cover early concept work. It sets the tone for a serious, professional relationship. 
  
• Buffer Time Built-In: Add extra time in your pricing and timelines to account for revisions, vendor delays, and changes in scope. 

Financial Management Tips to Stay Profitable 

Once you’ve built smarter pricing structures, financial follow-through is key. Here are a few tips that make a big difference: 

• Outsource Bookkeeping Early: Don’t wait until you’re overwhelmed. Bringing in a bookkeeper frees you up to focus on design and revenue-generating work. 
  
• Consider Switching to an S-Corp: This business structure can provide tax advantages. Ask your accountant if it’s right for your growth plans. 
  
•  Track Your Margins Project-by-Project: Know what you’re earning after every install, invoice, and order. Identifying where you’re most profitable helps you make smarter decisions. 

One big reason you probably feel the need to hire an assistant designer is that you don’t have enough hours in the day. But how many of those hours are spent on numbers and spreadsheets? Hire a professional rather than do it yourself. 

Pearl Collective

Don’t Be Afraid to Charge What You’re Worth 

Many designers hold themselves back from raising rates because of fear. They’re worried about losing a client, pricing themselves out of the market, or receiving judgment. But undercharging leads to burnout and underperformance. 
 
ALSO DOWNLOAD: eBook: Designing Success – Building a Strong Firm from Day One 

Your time, experience, and design perspective are incredibly valuable. When your pricing reflects that, your clients will actually trust your process more. 

If needed, create a system where a team member (or a fictional persona if you’re working solo) handles financial conversations. This separation can take the emotion out of invoicing and help you hold your boundaries with confidence. 

Key Takeaways: Stronger Pricing Structures for Interior Designers 

Pricing structures for interior designers reflect your process, your value, and your goals. Here’s how to strengthen yours: 

• Start with clear, confidence-backed pricing models 
• Charge for all aspects of the project—including management and procurement 
• Set project minimums and use retainers to qualify clients 
• Build contracts that protect your time and future revenue 
• Diversify income with services like procurement and consulting 
• Track margins and cash flow consistently 
• Outsource what you can to stay focused on growth 

The right pricing structure is a foundation for a more profitable, sustainable design business, one where you can focus on delivering incredible spaces and scaling with intention.