FINBIZTOOLS
Retainer Calculator
Price a monthly retainer. Enter the hours you commit each month and your hourly rate, then optionally a retainer discount to see the monthly fee and the effective hourly rate.
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Changes the currency symbol and number format only. Amounts are not converted.
How to use the Retainer Calculator
- Enter the hours committed per month.
- Enter your hourly rate.
- Open Advanced assumptions to add a retainer discount, if you offer one.
- Select Calculate to see the monthly fee and effective hourly rate.
Use the currency selector above the inputs to change the symbol. It changes the display only and does not convert amounts.
What a retainer is
A retainer is a recurring monthly payment for a committed block of your time, giving you predictable income and the client priority access.
Some freelancers offer a discount for the commitment; the effective hourly rate shows what that discount means per hour.
How the calculation works
Retainer Calculator for Freelancers formula
Retainer fee = Hours × Hourly rate × (1 − Discount)
Effective hourly rate = Retainer fee ÷ Hours
- Hours is the time committed each month.
- Discount is entered as a percentage, from 0 to 100.
A discount of zero gives the full-price fee. The comparison chart shows the full price beside the discounted retainer.
Retainer Calculator for Freelancers example
20 hours a month at 1,500 per hour with a 10% discount:
| Hours committed per month | 20 |
|---|---|
| Hourly rate | 1500 |
| Retainer discount | 10% |
| Hours committed per month | 20 |
|---|---|
| Monthly retainer fee | 27000 |
| Effective hourly rate | 1350 |
Amounts are shown without a currency symbol because the arithmetic is identical in any currency; the currency selector only changes the symbol and number format.
Assumptions and limitations
Assumptions
- The client uses the committed hours each month.
- The discount applies to the whole retainer.
Limitations and why results can differ
- It does not handle unused or rolled-over hours.
- It does not model overage rates for hours beyond the commitment.
Frequently asked questions
Why offer a discount on a retainer?
The commitment gives you predictable income, so some freelancers trade a lower hourly rate for that certainty.
What is the effective hourly rate?
It is the retainer fee divided by the committed hours, which shows the true per-hour price after the discount.
Do I have to offer a discount?
No. The discount is optional and defaults to zero.
What about hours over the commitment?
This calculator does not price overage. Agree an overage rate separately.
Methodology
Inputs are validated as finite numbers within the ranges shown on the calculator, and division by zero is rejected. The result is computed directly from the formula on this page with no intermediate rounding beyond the stated display rounding.
The calculation runs in your browser and inputs are not sent to a server.
Last reviewed:
Disclaimer
Results are calculated estimates based on the figures you enter. They are not accounting, pricing, tax or legal advice. Verify important business and pricing decisions with your own records and a qualified professional. Read the full Disclaimer.
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This tool is part of Freelancing and E-commerce.
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