Retainer Pricing Calculator
Turn expected monthly hours and an hourly rate into a recommended retainer, with optional discount and average pricing.
Retainer pricing
Hours included in the monthly retainer.
Percentage off the standard monthly value.
Defaults to your standard hourly rate until you change it.
Average scenario (optional)
See overage hours and the total to invoice for one month. Unused hours are not treated as credits.
Recommended monthly retainer
Based on 400 hours at $150.00/hour with a 10% retainer discount.
Effective hourly rate under the retainer is $135.00.
This month's invoice
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How to Use the Retainer Pricing Calculator
Setting a fixed monthly retainer is a balancing act. You want to offer your clients predictable costs and incentive to commit, but you also need to protect your hourly value. This Retainer Pricing Calculator helps freelancers, consultants, and agencies determine the ideal monthly fee by factoring in expected hours, your standard rate, and a volume discount.
By inputting your expected monthly hours and your standard hourly rate, the tool calculates the "Standard Monthly Value." From there, you can apply a retainer discount percentage—a common practice to reward clients for guaranteed monthly work. The calculator then shows you the Effective Hourly Rate, ensuring you never accidentally undervalue your time. Finally, the "Average Scenario" section allows you to forecast a specific month's invoice, accounting for overage hours if you work more than the agreed-upon retainer amount.
Frequently Asked Questions
What is a retainer discount?
A retainer discount is a percentage reduction off your standard hourly rate given to clients who commit to a fixed monthly contract. It's a trade-off: the client gets a lower effective rate and predictable billing, while you get guaranteed income and reduced administrative work.
How do overage hours work?
Overage hours are any hours worked beyond the "Included hours" in your retainer agreement. This calculator allows you to set a separate "Overage hourly rate" (usually your standard rate). If you work more than the retainer covers, the tool automatically calculates the additional charge for that month.
What is the difference between "Standard hourly rate" and "Average hourly rate"?
Your Standard hourly rate is your normal billing rate. The Average hourly rate is used to calculate the monthly retainer value. By default, it matches your standard rate. However, you can change it if you want to calculate the retainer based on a blended rate.
Are unused hours credited to the next month?
This calculator does not automatically roll over unused hours. In most standard retainer agreements, unused hours are forfeited at the end of the month. This encourages clients to use your services regularly and protects you from accumulating a massive liability of owed hours.