FFreelanceGuide

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Price a monthly retainer

A retainer turns unpredictable project work into steady, recurring income — a client pays a fixed monthly fee for a guaranteed block of your hours. This works out the price from your hourly rate, the hours you'll include, and a small commitment discount.

Your retainer terms
$
Your normal one-off rate. Not sure? Run the rate calculator first, then bring the number here.
20 hrs/mo
The block of hours the client reserves — and pays for — every month, whether or not they use all of it.
10%
A modest cut off your hourly rate in exchange for guaranteed, recurring work. 5–15% is typical; keep it small.
1.25×
Hours beyond the cap bill at your rate × this. 1.0× = same rate; 1.25–1.5× prices the premium for unplanned, over-cap work.
Monthly retainer
$2,160/ month

Your hourly rate
Commitment discount
Effective hourly
Hours included / month
Monthly retainer =
Annual contract value
Overage (beyond cap)

Nothing you type leaves your browser. This isn't tax or legal advice — talk to an accountant or attorney before signing a retainer agreement.

How to price a freelance retainer

A retainer is the simplest path from feast-or-famine project work to income you can actually plan around. Instead of quoting each job from scratch, you and the client agree on a fixed monthly fee for a reserved block of hours. They get priority access and a predictable bill; you get recurring revenue that lands whether or not a new project happens to come in that month. The math is refreshingly direct:

effective hourly = your rate × (1 − discount)
monthly retainer = effective hourly × included hours
annual value = monthly retainer × 12
overage rate = your rate × overage multiplier

The discount is the part people overthink. It exists for one reason: the client is committing to pay you every month, sight unseen, so a small price break is fair compensation for that certainty. But keep it small — 5% to 15% is plenty. A retainer should be a touch cheaper per hour than ad-hoc work, not a fire sale. If you discount 30% or 40%, you've quietly turned your best, most reliable income into your worst-paid work.

The overage multiplier protects the other side of the deal. The included hours are a cap, not a ceiling on the client's appetite — months will run long. Billing over-cap hours at 1.0× (your normal rate) is the gentle option; 1.25× to 1.5× prices in the reality that unplanned, over-the-cap work is more disruptive and worth more. Either way, write the overage rate into the agreement so a busy month never turns into an awkward conversation.

Should included hours roll over?

That's a policy choice, and it changes the deal's economics. The most common — and most retainer-friendly — approach is use-it-or-lose-it: unused hours expire at month's end, which is exactly what makes the revenue predictable for you. If you let hours roll over, you're effectively giving the client a bank of your time, and a quiet month followed by a heavy one can blow past your real capacity. This calculator prices a clean, non-rolling monthly block; if you offer rollover, treat the number here as your floor and tighten the terms in writing.

Frequently asked questions

What's a typical retainer discount?

Most freelancers offer 5–15% off their standard hourly rate in exchange for the client's monthly commitment. The discount is payment for predictability, not a race to the bottom — a retainer should still be among your better-paid work. If you find yourself discounting 25% or more, you're underpricing guaranteed income, which is the most valuable kind.

What happens when a client goes over the included hours?

Those extra hours bill at your overage rate — your normal hourly rate multiplied by the overage multiplier you set (often 1.0× to 1.5×). Spell the overage rate out in the agreement up front. That way a heavy month is just a line item, not a renegotiation, and the client can decide whether to approve the extra hours or wait for next month's allotment.

Should I price a retainer by hours or by value?

Many seasoned freelancers move to value- or scope-based retainers — a flat monthly fee tied to outcomes or a defined deliverable set rather than a literal hour count. Even then, the hourly math here is your floor: it tells you the minimum a retainer must earn so you're not quietly working below your rate. Price the value, but check it against these numbers before you sign.

Is my information saved anywhere?

No. Every calculation runs entirely in your browser — nothing you type is sent to a server or stored. The link in your address bar updates so you can bookmark or share a scenario, but that link only contains the numbers you chose.

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