How to set your tutoring rates
This is perhaps the most common question that I get, and one of the most difficult to answer. The range for tutoring rates is typically anywhere from $25 to $75 per hour, with many learning coaches (a fancy name for a tutor) charging $100 or more per hour. The rates that tutoring businesses charge may depend upon a number of factors including who is doing the tutoring, where the tutoring takes place, the ratio of students to teachers, local competition, demographics, the size of the company, and how much advertising and overhead expenses they must make up. It is a common misconception that higher prices mean better tutoring. One of the biggest obstacles that tutors must overcome in starting their own tutoring business is to undervalue their services and charge their customers too little. I once spoke with a tutor who had graduated from University with an engineering degree and was tutoring part-time for $25 per hour. He is highly trained and qualified, with lots of experience and is also an effective and compassionate tutor. I told him he should be charging at least two or three time what he was currently charging, and although he was initially sceptical, he eventually agreed with me and doubled his rates. He didn’t lose one client so they obviously agreed as well!
Here are some more important factors that you may want to consider before setting your tutoring rates:
Online vs. face-to-face: Customers are generally willing to pay two or three times as much for face-to-face tutoring than for online tutoring, because face-to-face is perceived as being more effective and productive.
Student to Teacher Ratio: If you are providing one-to-one tutoring, then you should be able to charge more than someone who is tutoring two or three students at the same time. If you have to share your tutor with two other students, then you are only getting 20 minutes of tutoring for every hour that you pay for. Although this seems obvious, many customers don’t consider this, and end up overpaying.
Tutor Experience: If you are a math teacher with ten years of experience and an excellent reputation, you should be able to charge at least double what a high school peer tutor would charge.
Demographics: Tutoring, as with any other business, can only charge what the market is willing and able to pay. All things being equal, a good tutor in a wealthy neighbourhood can probably charge significantly more than an equivalent tutor in an underprivileged neighbourhood.
Where the Tutoring Takes Place: If you travel to a client’s home, as opposed to having them come to your tutoring centre, you should charge a premium to compensate you for travel time, and reflect the added convenience for the customer.
To help you set your tutoring rates, here are a few examples of different tutors and the rates they should charge:
A grade 12 student traveling to student’s homes to provide tutoring: $35 per hour
An experienced adult learning coach tutoring in a wealthy neighbourhood… $75-$100 per hour
A college student providing tutoring to high school students… $50-$60 per hour
A retired teacher providing tutoring in an underprivileged neighbourhood… $25-$40 per hour
I don’t mean to offend anybody with these suggested rates – they are not necessarily indicative of what the tutor is worth, but rather what they can reasonably expect to charge. It is up to you to decide what you are worth and charge accordingly, given the realities of the market that you are operating in.
For more information about starting a tutoring business consult: