Retainer Calculator
A monthly retainer fee from hours and rate, with an optional discount, contract value and effective rate if not all hours are used.
Your retainer
Filled in with example values. Replace them with your own.
Optional
Currency symbol
Results update as you type.
Result
Monthly retainer: $1,620.00 for 20 hours ($81.00 an hour); $19,440.00 over 12 months
Monthly retainer
$1,620.00a month
- Effective hourly rateIf all hours are used
- $81.00
- Discount a monthFull price $1,800.00
- $180.00
- Contract value12 months
- $19,440.00
- Discount over the contract
- $2,160.00
How it’s calculated
Full price
20 h × $90.00 = $1,800.00
Less retainer discount
$1,800.00 × (1 − 10%) = $1,620.00
Effective hourly rate
$1,620.00 ÷ 20 h = $81.00
Contract value
$1,620.00 × 12 = $19,440.00
How the retainer calculator works
The monthly fee is the hours included each month multiplied by your hourly rate, less any discount you offer for the commitment. The calculator also shows the effective hourly rate, the value of the whole contract, and what each hour earns if the client uses fewer hours than agreed.
The formula
Monthly fee = Hours a month × Hourly rate × (1 − Discount %)
Effective rate = Monthly fee ÷ Hours a month
Contract value = Monthly fee × Months
Rate at usage = Monthly fee ÷ (Hours a month × Usage %)
Worked example
A marketing consultant offers 20 hours a month at 90 an hour with a 10% discount on a 12-month retainer.
- Full price: 20 × 90 = 1,800 a month
- Monthly fee: 1,800 × 0.9 = 1,620, an effective 81 an hour
- Contract value: 1,620 × 12 = 19,440; the discount costs 2,160 over the year
- If the client uses only 75% of the hours (15 a month), each hour actually earns 1,620 ÷ 15 = 108
Assumptions and limitations
- The fee is the same every month. Rollover of unused hours and billing for extra hours are not modelled.
- Fees, expenses and taxes are not deducted; use the Freelance Income Calculator to see what you keep.
Frequently asked questions
What is a retainer?
An agreement where a client pays a fixed amount every month for a set amount of your time or availability. The client gets reserved capacity; you get predictable income.
Should I discount a retainer?
Some freelancers offer a small discount in return for a guaranteed monthly commitment; others charge full rate or even a premium for reserved availability. The calculator shows what any discount costs you each month and over the contract.
What happens if the client does not use all the hours?
That depends on your agreement. If unused hours expire, your effective hourly rate goes up, which the “hours the client uses” field shows. If they roll over, you will owe that time later.
How should I charge for extra hours?
Many retainer agreements bill hours beyond the monthly allowance separately, often at the standard hourly rate. Agree on it in writing before the work starts.