How Do Interior Designers Bill?
If you've started getting quotes from different designers, you've probably noticed they all seem to structure their fees differently. One charges hourly. Another quotes a flat fee. A third talks about percentages and markups.
Let us assure you that there's no single, standard way that designers charge for their services. The interior design industry simply doesn't have a one-size-fits-all pricing model because different fee structures work better for different types of projects and different designers’ business models. None of them is inherently better or worse than the others but it does make answering “how much does this cost” a bit more complicated.
What matters is understanding how each method works, what's included, and which makes the most sense for your project. We will walk you through the most common ways interior designers charge, the pros and cons of each, and how to evaluate what's fair.
Hourly Rate
This is probably the most straightforward pricing model. You pay for the designer's time at an agreed-upon hourly rate.
How it works: The designer tracks their time spent on your project and bills you accordingly usually in 15 minute increments. This includes time spent meeting with you, sourcing products, creating designs, communicating with contractors, shopping, and all other project-related work. You typically receive a monthly invoice showing hours worked and tasks completed. Some designers collect a retainer and bill your monthly invoice against this deposit.
Typical rates: In the Boston area, hourly rates for interior designers range from $150 to $500+ per hour, depending on the designer's experience, expertise, and reputation. Newer designers or those in lower cost of living markets charge on the lower end. Highly sought-after designers with decades of experience charge premium rates.
Best for:
Design consultations
Small projects with limited scope
Clients who want specific guidance but plan to execute themselves
Projects where the time commitment is hard to estimate upfront
Pros: You only pay for work actually performed. If a project moves quickly or ends up being simpler than expected, you save money. There's transparency in exactly what you're paying for. And you're not locked into a large upfront commitment.
Cons: The final cost is unpredictable. If a project becomes more complex or takes longer than anticipated, costs can exceed what you budgeted. Some clients feel like they're watching the clock, worried about every email or phone call adding to the bill. And some clients feel hourly billing can incentivize slower work though no reputable designer would take this approach.
Questions to ask:
What's your hourly rate?
Do you require a retainer upfront?
How do you track hours?
Will I receive detailed invoices?
What's your estimate of total hours for my project? (because they do not know how quickly you make decisions, or if you plan to expand the scope, be prepared for a wide range)
Are there any tasks that fall outside hourly billing (like travel time)?
Flat Fee (Fixed Fee)
With this model, the designer quotes one set price for the entire project or for specific phases of work.
How it works: The designer evaluates your project scope, estimates how much time and effort it will require, and quotes a total fee. This might be for the entire project from concept to installation, or broken into phases (concept design, design development, installation). You know the price upfront and typically pay in installments tied to milestones.
Typical fees: This can vary greatly based on your project scope. A single-room design might be $3,000 to $10,000. A full-home renovation could be $25,000 to $100,000+. The fee reflects the expected time commitment, complexity, and deliverables.
Best for:
Full-service projects with clearly defined scope
Clients who want cost certainty upfront
Renovation projects where the scope is relatively fixed
Clients who don't want to worry about tracking hours
Pros: You know exactly what you're paying from the start. No surprises, no creeping costs. You can budget accurately. And you're not worried about every question or revision adding to the bill.
Cons: If the project scope changes significantly or becomes more complex than anticipated, the flat fee might not cover the actual work required. Some designers address this by charging for changes beyond the original scope or after a set number of revisions.
Questions to ask:
What exactly is included in this fee?
What would trigger additional charges?
How do you handle scope changes?
What's the payment schedule?
What deliverables will I receive?
What happens if I want to make changes mid-project?
Percentage of Project Cost
Some designers charge a percentage of the total project budget. This is common for large-scale renovations or new construction builds but can also be applied to a furnishing project.
How it works: You establish a total project budget (including construction costs, furnishings, everything). The designer's fee is a percentage of that total, typically 15% to 30%. So if your total project budget is $200,000 and the designer charges 20%, their fee would be $40,000.
Typical percentages: This varies based on project size, complexity, and the designer. Large commercial projects can command lower percentages around 10% while smaller residential projects might be higher, around 15%-25%.
Best for:
Large-scale renovations
New construction
Projects with substantial budgets
Situations where the designer is heavily involved in design management and project oversight
Pros: The fee scales with the project size. If your budget increases, the designer's compensation increases proportionally. And the percentage model is common in architecture and construction, so it feels familiar.
Cons: Some clients worry this creates an incentive for designers to increase project costs since higher costs mean higher fees. Reputable designers don't operate this way, but the perception exists.
Questions to ask:
What percentage do you charge?
Is this based on total project cost or just certain elements?
What's included in the project cost that the percentage is calculated from?
How do you handle budget changes?
Is there a minimum fee regardless of final project cost?
Cost-Plus (Product Markup)
This model involves the designer purchasing items on your behalf and adding a markup to cover their time and expertise. This is usually in addition to one of the other billing models mentioned above.
How it works: The designer sources furniture, lighting, rugs, accessories, and other items. They purchase these at their cost (often paying trade pricing or as a wholesaler) and then bill you the retail cost, or add a markup (typically 20% to 35%). You're paying their cost, plus their markup.
Typical markups: Markups usually range from 20% to 35%, though this varies. Some designers charge lower markups but higher design fees. Others rely more heavily on product markup as their primary revenue.
Best for:
Furnishing projects without major construction
Clients who want the designer to handle all purchasing
Projects where the designer is designing from scratch and sourcing
Situations where trade access is a significant value-add
Pros: You get access to trade-only products and have someone to take on the liability of the purchase. Even with the markup, you often pay equal to or less than retail while the designer handles all ordering, shipping, receiving, inspecting, and coordinating. Plus, you're not paying separately for the time spent on these back-end logistics.
Cons: The markup structure can feel opaque if you're not used to it. Some clients struggle with the idea of paying a markup on products. And if you find the same item cheaper elsewhere, you might feel frustrated. Remember, the new place you would buy it from is also making a markup. You just don’t know it.
Questions to ask:
What's your markup percentage?
Do I get access to trade pricing on invoices?
How does this compare to retail pricing?
Can I purchase items directly?
Are all products marked up the same percentage?
How do you handle returns or defective items?
Retainer-Based
Some designers work on a retainer model where you pay a set amount monthly for their services.
How it works: You pay a monthly fee that covers a certain number of hours or a certain level of availability. This is more common for ongoing relationships than one-off projects.
Best for:
Clients who want ongoing design support
Property managers or developers with multiple ongoing projects
Businesses that need regular design services
High-end residential clients who want a designer on call
Pros: Predictable monthly costs. The designer is always available. You build a strong working relationship over time.
Cons: You're paying even during slower months. Not ideal for one-time projects.
Hybrid Models
Most designers use a combination of fee structures, and this often makes the most sense.
Common hybrid approaches:
Design fee plus product markup: You pay a flat fee or hourly rate for the design work (space planning, material selections, creating plans), and then the designer marks up furnishings and decor they source for you. This separates the creative/planning work from the procurement.
Hourly for consultation, flat fee for implementation: The initial consultation and concept development is billed hourly. Once the scope is clear, you switch to a flat fee for design development and implementation.
Flat fee for design, hourly for construction oversight: The design work has a set fee, but construction coordination and site visits are billed hourly since it's hard to predict how much time that will require.
Retainer plus cost-plus: You pay a monthly retainer that covers general availability and design work, plus the designer marks up products they source.
Best for: These hybrid models can work for almost any project because they're tailored to the specific scope and needs. They allow flexibility while still providing some cost predictability.
Questions to ask:
How do the different fee components break down?
What's covered by each part of the fee structure?
How will I be billed for each component?
Are there any additional fees I should know about (travel, administrative, rush fees)?
Do you require a retainer or deposit upfront?
What happens if I decide to pause or cancel the project?
What About "Free" Design Services?
You might encounter furniture stores or showrooms that offer "free" design services. Here's what's really happening:
The design services aren't actually free. The cost is built into the price of the products you purchase (ie. there is a markup even if you’re not aware of it). The "designer" is often a salesperson incentivized to sell you products that store sells, which limits your options.
There's nothing wrong with using these services if you understand the limitations. But it's not the same as hiring an independent interior designer who has no stake in what you purchase and can source from anywhere.
How to Evaluate What's Fair
So how do you know if a designer's fees are reasonable? Here are some guidelines:
Consider the designer's experience: A designer with 15 years of experience and a stellar portfolio should charge more than someone fresh out of school. You're paying for expertise, efficiency, and refined taste.
Compare to local market rates: Boston-area designers charge more than designers in most markets. That's just the reality so we recommend researching typical rates in your area.
Think about the value you're receiving: A good designer saves you money by preventing mistakes and making smart decisions. They save you time by managing everything and deliver results you couldn't achieve alone. That has value while you live there, and when it’s time to sell.
Look at what's included: Compare what you're getting and not just the fee amount. A low flat fee might not include things that a higher fee covers.
Trust your gut on transparency: A good designer will clearly explain their fee structure, answer your questions, and make you feel comfortable with the costs.
Get multiple quotes: Talk to a few designers and compare their approaches. This helps you understand the range, what different models look like, and how different designers work.
Red Flags to Watch For
Be cautious if:
A designer is vague or won't clearly explain their fee structure, that's a problem.
The fees seem unusually low. If someone is charging way below market rates, they're either inexperienced, cutting corners, or not being transparent about hidden costs.
There's no written contract. Always get the fee structure in writing before work begins.
They pressure you to commit without answering your questions. A reputable designer wants you to understand and be comfortable with the costs.
They can't provide examples of past project costs. While every project is different, an experienced designer should be able to give you ballpark numbers based on similar past work. Just don’t hold them to those exact numbers as you’ll need a contractor to provide a concrete bid for your exact work.
The Bottom Line
There's no right way for designers to charge so make sure to find a fee structure that:
Makes sense for your project type and scope
Fits your budget and financial preferences
Is clearly explained and transparent
Comes from a designer whose work and approach you trust
Don't choose a designer based solely on who charges the least. Instead, choose based on the value they provide, the quality of their work, and whether their fee structure feels fair and transparent.
A good designer is an investment in your home. The right fee structure is one that compensates them fairly for their expertise while giving you confidence in what you're paying for.
Still Have Questions?
Understanding how designers charge is important, but the best way to get clarity is to have direct conversations with designers about your specific project.
At Nubuor Designs, we're happy to explain how our pricing works for different types of projects. We tailor our approach based on what makes the most sense for your needs and budget.
Contact us to schedule a consultation. We'll discuss your project and provide clear information about costs and our process.
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