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Retainer Pricing Calculator

Price a monthly retainer from your hourly rate, hours and commitment discount.

Normal hourly rate ($)

Hours included per month

Retainer discount (%) 0 for none

Commitment (months)

Monthly retainer fee

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Effective hourly rate–

Client saves per month–

Total contract value–

Suggested overage rate (normal rate)–

Why offer a retainer?

A retainer is a fixed monthly fee in exchange for a set amount of your time or a defined set of deliverables. For a freelancer it means predictable income and less time spent hunting for the next project. For the client it means guaranteed access to someone who already knows their business.

Because you gain stability, it is common to offer a small discount in return for a longer commitment. This calculator shows exactly what that discount costs you and what the whole agreement is worth.

The formula

Monthly fee = hourly rate × hours per month × (1 − discount %)
Effective rate = monthly fee ÷ hours per month
Contract value = monthly fee × months

Worked example

You normally charge $90 an hour and a client wants 20 hours a month. At full price that would be $1,800. With a 10% retainer discount the fee is $1,620 a month, an effective rate of $81 an hour. Over a six-month commitment the contract is worth $9,720.

Tips for retainer agreements

Bill at the start of each month, before the work is done.
Decide what happens to unused hours. Many freelancers let them expire each month; rolling them over indefinitely can create a backlog you cannot deliver.
Charge your normal rate for extra hours beyond the retainer.
Tie the discount to the term. Larger discounts for longer commitments, none for month-to-month.

Frequently asked questions

How much discount should a retainer get?

Many freelancers offer 5% to 15%, or no discount at all if the client mainly values priority access.

Hours or deliverables — which is better?

Hour-based retainers are easier to track. Deliverable-based retainers (for example, four blog posts a month) are easier for clients to understand. Either works if the scope is written down clearly.

What if the client uses fewer hours?

That should be covered in your agreement. A common rule is that unused hours expire at the end of each month, because you reserved that time for them.

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