market-rate

IPA/ˌmɑː.kɪt ˈreɪt/
IPA/ˌmɑːr.kɪt ˈreɪt/

market-rate — noun

1. the typical price that buyers and sellers agree on for a product or service in a

1.nounB1
Definition

the typical price that buyers and sellers agree on for a product or service in a free market, without special discounts or government controls

Example

Marta charges a rent well below the market rate for her two-bedroom apartment.

collocation: below the market rate

Ravindra accepted a job that pays above the market rate for his level of experience.

collocation: above the market rate

Common collocations
  • below the market rate
  • above the market rate
  • at the market rate
  • pay the market rate
  • check the market rate
  • market rate for [something]
  • market rate of pay
Synonyms
  • going rate

    more informal; common in spoken British English

  • prevailing rate

    more formal; often used in economic reports or legal documents

  • current price

    broader; can refer to any price at a given moment, not necessarily set by the free market

Grammar Patterns

the market rate for + [product/service]

at/below/above the market rate

Usage Note

Often written without a hyphen (market rate) when used as a standalone noun. The hyphenated form (market-rate) is more common before another noun, e.g. market-rate housing.

Word family

Synonym discussion

Sense: noun/1

Market rate, going rate, and prevailing rate all refer to the typical price for a service or product in a free market, but they differ in register and context. Market rate is the most neutral and widely used term, covering everything from rent to salaries to goods. Going rate is more informal — you would hear it in conversation ("What's the going rate for a babysitter?") rather than in a contract. Prevailing rate sounds formal and official; it appears in legal documents, union agreements, and government reports. Current price is broader: it means the price right now, regardless of whether it was set by the market or by a seller. For example: "The current price of that laptop may not reflect the market rate — the store is having a clearance sale."

market rategoing rateprevailing ratecurrent price

Common collocations

Nouns

Phrases

  • the market rate for [product/service]
  • pay below market rate
  • pay above market rate
  • charge market rate

Prepositions

Etymology

LatinFrenchEnglish

Market comes from the Latin mercatus, meaning "trading" or "marketplace," via Old English and Middle English. Rate comes from the Latin rata (parte), meaning "fixed (portion)," via French. The compound market rate began to appear in commercial English in the 1600s to describe the price determined by supply and demand rather than by regulation.