How to use this calculator
- Enter your normal hourly rate and the hours the client wants reserved each month.
- Add a discount if you're offering one in return for a longer commitment, and the number of months.
- Guess how many hours the client will really use. Look at past months with similar clients if you can.
- Read the monthly fee, and check the rate you earn for the hours you actually work.
How it's calculated
Worked example
Maya is a freelance copywriter who charges $75 an hour. A client wants 20 hours a month for 6 months, and Maya offers 10% off for the commitment. From past clients, she expects them to use about 16 hours a month.
Maya quotes $1,350 a month. If the client uses all 20 hours she earns $67.50 an hour, and if they use 16 hours she earns about $84.38 for each hour she works.
What to agree in writing
- Unused hours: whether they expire at the end of each month or roll over (and for how long).
- Extra hours: the rate for work beyond the retainer, often your normal hourly rate.
- Payment: retainers are usually paid at the start of each month, before the work.
- Ending early: how much notice either side must give.
Frequently asked questions
What is a retainer?
A retainer is a fixed monthly fee a client pays to reserve some of your time. You get predictable income, and the client knows you'll be available.
Do I have to offer a discount?
No. Some freelancers offer a small discount because the steady income saves them time looking for work. Others charge their full rate, or even more, for guaranteed availability. Set the discount to 0 to see your full-price fee.
What if the client uses more hours than the retainer?
Then your rate per hour worked falls below your normal rate. Agree in advance that extra hours are billed separately, so the retainer doesn't turn into unpaid work.