How do I calculate a monthly retainer?

Multiply expected monthly hours by your standard hourly rate to get the standard monthly value. Apply any retainer discount to get the recommended monthly retainer. Effective hourly rate is the retainer divided by included hours.

What is a retainer discount?

A retainer discount is an optional percentage off the standard monthly value in exchange for a predictable monthly fee. For example, 10% off 40 hours at $150/hour reduces $6,000 to a $5,400 retainer.

How should I price overage hours?

Set an overage hourly rate for hours above the included allotment. This calculator defaults overage to your standard hourly rate until you change it. Some freelancers charge the same rate; others charge a premium for overflow work.

What happens to unused retainer hours?

This calculator does not roll unused hours into future months. Whether unused hours expire or carry forward is a contractual choice—set that policy in your retainer agreement, not in the calculator.

How is a retainer different from hourly billing?

Hourly billing invoices actual hours each period. A retainer bills a fixed monthly fee for a set of included hours, with optional overage charges when the client uses more than the allotment.

What does Create this invoice do?

It opens the Invoice Generator with your monthly retainer (and overage hours, if any) prefilled so you can review and send the invoice.

Retainer Calculator

Turn expected monthly hours and an hourly rate into a recommended retainer, with optional discount and overage pricing.

Currency

Retainer pricing

Expected hours per month

Hours included in the monthly retainer.

Standard hourly rate

Retainer discount (%) (optional)

Percentage off the standard monthly value.

Overage hourly rate

Defaults to your standard hourly rate until you change it.

Overage scenario (optional)

Actual hours worked this month

See overage hours and the total to invoice for one month. Unused hours are not treated as credits.

Recommended monthly retainer

$5,400.00

Based on 40 hours at $150.00/hour with a 10% retainer discount.

Effective hourly rate under the retainer is $135.00.

Standard monthly value: $6,000.00
Retainer discount: $600.00
Effective hourly rate: $135.00
Included hours: 40
Overage hourly rate: $150.00
Monthly retainer: $5,400.00

This month’s invoice

Included hours: 40
Overage hours: 8
Overage charge: $1,200.00
Total to invoice: $6,600.00

Create this invoice

Ready to send it? Open the Invoice Generator or browse all calculators.

How to calculate a monthly retainer

Estimate the hours you expect to work for the client each month.
Multiply those hours by your standard hourly rate to get the standard monthly value.
Apply an optional retainer discount for a predictable monthly fee.
Set an overage rate for hours above the included allotment.
When actual hours exceed the allotment, invoice the retainer plus overage hours × overage rate.

Example: 40 hours at $150/hour is $6,000. A 10% discount yields a $5,400 monthly retainer ($135 effective hourly). If the client uses 48 hours, 8 overage hours at $150 add $1,200—total invoice $6,600. Unused hours are not assumed to roll over.

Retainer pricing and overage

A retainer trades some hourly upside for steady monthly revenue. Discounts of 5–15% are common when the scope is predictable; larger discounts make sense only when utilization stays high. Include enough hours to cover typical months, then price overflow separately so large spikes do not erase the retainer’s predictability.

Compared with pure hourly billing, retainers simplify cash flow and client planning. Compared with fixed project fees, they fit ongoing advisory or support work where scope repeats each month.

Frequently asked questions

How do I calculate a monthly retainer?: Multiply expected monthly hours by your standard hourly rate to get the standard monthly value. Apply any retainer discount to get the recommended monthly retainer. Effective hourly rate is the retainer divided by included hours.
What is a retainer discount?: A retainer discount is an optional percentage off the standard monthly value in exchange for a predictable monthly fee. For example, 10% off 40 hours at $150/hour reduces $6,000 to a $5,400 retainer.
How should I price overage hours?: Set an overage hourly rate for hours above the included allotment. This calculator defaults overage to your standard hourly rate until you change it. Some freelancers charge the same rate; others charge a premium for overflow work.
What happens to unused retainer hours?: This calculator does not roll unused hours into future months. Whether unused hours expire or carry forward is a contractual choice—set that policy in your retainer agreement, not in the calculator.
How is a retainer different from hourly billing?: Hourly billing invoices actual hours each period. A retainer bills a fixed monthly fee for a set of included hours, with optional overage charges when the client uses more than the allotment.
What does Create this invoice do?: It opens the Invoice Generator with your monthly retainer (and overage hours, if any) prefilled so you can review and send the invoice.

Set your rate with the Freelance Rate Calculator. Invoice time-and-materials work with the Hourly Invoice Calculator or fixed-scope work with the Project Invoice Calculator. Estimate capacity with the Billable Hours Calculator. For general line-item totals, use the Invoice Calculator. Ready to bill? Create an invoice.