Retainer Pricing Calculator
Price a monthly retainer from the hours you commit and your rate — with an optional discount for the guaranteed, recurring work.
Written by Dorothy Ibrahim, 10+ years in banking & finance
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How we calculate this
This calculator prices a monthly retainer from the hours you commit each month and your hourly rate. Instead of chasing new projects every month, you bill a client a set fee for a committed block of hours, month after month — the closest a freelancer gets to a salary. If you offer a discount in exchange for the guaranteed, recurring work, the tool applies it and shows the effective hourly rate you actually earn after that discount.
The formulas
- Monthly retainer
- committed hours per month × hourly rate × (1 − discount%)
- Effective hourly rate
- monthly retainer ÷ committed hoursShown as a dash when committed hours is zero — there is no rate per hour to compute.
- Annual value
- monthly retainer × 12
Worked example
- With the defaults — 20 committed hours per month at a $100 hourly rate and no discount — the monthly retainer is 20 × $100 × (1 − 0%) = $2,000.
- The effective hourly rate is $2,000 ÷ 20 hours = $100/hour — the same as the full rate, since no discount was applied.
- The annual value of the retainer is $2,000 × 12 = $24,000.
Rates, benchmarks & sources
- Monthly retainer computed as committed hours × hourly rate, less any negotiated discount. — Standard freelance retainer pricing practice
- Retainer discounts (commonly 5–15%) and unused-hours handling are negotiated terms, not fixed rules. — General independent-contractor contracting guidance
Figures current as of 2026-07-02. See our methodology & editorial standards for how constants are versioned and verified.
What this tool doesn’t model
- Does not track unused or rolled-over hours, overage billing, or contract terms — those must be defined in your retainer agreement.
- Assumes a single hourly rate and a flat monthly discount; it does not model tiered pricing, priority-access premiums, or multi-service retainers.
- A pricing utility, not financial or contract advice — the right retainer price depends on your target income, market, and what you are willing to trade for stability.
Frequently asked questions
How do I price a freelance retainer?
Start from the hours you will commit each month times your hourly rate. From there you might add a premium for priority access, or offer a modest discount in exchange for the guaranteed, recurring work — this tool handles the discount side by adjusting the discount field.
Should I discount a retainer?
It is optional. A small discount, often 5% to 15%, can be worth it because a retainer gives you predictable income and less time spent finding new clients. Watch the effective hourly rate as you adjust the discount so you do not slip below the rate you need to hit your income target.
What happens to unused retainer hours?
Decide this up front and put it in the contract. Common approaches are that hours do not roll over because the client is paying for reserved availability, hours roll over for one month only, or overage beyond the committed hours is billed at your standard rate.
Why use a retainer instead of hourly billing?
Retainers smooth out freelance income’s biggest weakness, its lumpiness. Predictable monthly revenue makes budgeting and quarterly taxes easier to plan and can deepen the client relationship. The trade-off is committing capacity in advance, sometimes at a slight discount.
Does this calculator include taxes or fees?
No. It computes only the retainer price and effective hourly rate from the inputs you provide. It does not withhold self-employment tax, account for payment processing fees, or estimate what you will keep after expenses.