Agency Retainer Calculator
(Monthly Fee From Hours, Rate and Discount)
Enter the hours you commit each month, your standard hourly rate, a discount for the commitment and the lowest monthly fee you accept.
Step 1 — Committed Monthly Work
Step 2 — Retainer Terms
A small discount in exchange for guaranteed monthly income and priority access
The lowest you'll accept regardless of hours — covers holding a client slot open
Staff or contractor pay, tools and other costs for this client. Shows profit and margin on the retainer
Calculated Results
Enter your committed hours and hourly rate to calculate a monthly retainer.
This retainer calculator prices a monthly agreement from the hours it covers. Enter the committed hours, your standard hourly rate, any discount you give for the commitment and the lowest monthly fee you accept. It returns the retainer, the rate per hour it works out to and the value over a year.
How the Retainer Is Calculated
20 hours at $100 is worth $2,000 at your standard rate. A 10% discount takes off $200, so the retainer is $1,800 a month. That is $90 per hour and $21,600 over a year. A $1,500 floor has no effect here because $1,800 is above it.
| Discount | Monthly retainer for 20 hours at $100 | Effective hourly rate | Yearly value |
|---|---|---|---|
| 0% | $2,000 | $100 | $24,000 |
| 5% | $1,900 | $95 | $22,800 |
| 10% | $1,800 | $90 | $21,600 |
| 15% | $1,700 | $85 | $20,400 |
| 20% | $1,600 | $80 | $19,200 |
Each 5% of discount on this retainer costs $1,200 a year.
When the Minimum Floor Applies
A small retainer still takes fixed effort: a monthly call, reporting, invoicing and keeping time free for the client. The floor sets a fee below which the retainer is not worth holding open.
With a $1,500 floor, a 12-hour retainer at $100 less 10% comes to $1,080, so the floor applies and the retainer is $1,500. The client pays $125 for each hour covered. The calculator shows a note whenever the floor replaces the discounted figure.
Checking the Retainer Against Your Costs
An agency pays staff, contractors and tools to deliver a retainer. Enter that monthly cost in the optional field and the calculator shows what is left.
If the $1,800 retainer costs $1,100 a month to deliver, the profit is $700 and the margin is 38.9%.
You can also start from the cost and work forward.
A $1,100 cost with a 40% target margin gives 1,100 ÷ 0.60 = $1,833.33. If that is above what your hourly rate and discount produce, the discount is too large for this client or the hours are underestimated.
Terms to Settle Before You Quote
- What the hours cover. List the kinds of work included, and whether calls and reporting count against the hours.
- Unused hours. Decide whether they expire each month or carry over, and for how long.
- Extra hours. Set the rate for work above the retainer. At $100 an hour, 5 extra hours add $500.
- Payment date. Retainers are often invoiced at the start of the month they cover. State the date in the agreement.
- Notice period. State how much notice either side gives to end or change the retainer.
For a one-off job, the Project Quote Calculator gives a fixed price from an hours estimate. To check how much of your month is already sold, use the Billable Hours Calculator.
How to Use the Retainer Calculator
- Enter the committed hours: Type the hours per month the retainer covers.
- Enter your standard hourly rate: Type what you charge per hour for one-off work.
- Enter the retainer discount: Type the percentage you take off in exchange for the monthly commitment. Use 0 for no discount.
- Enter a minimum floor: Type the lowest monthly fee you accept. Use 0 for no floor.
- Add your cost to deliver: Optional. Type what the work costs you each month to see profit and margin on the retainer.
- Read the result: The calculator shows the monthly retainer, the effective hourly rate and the yearly value.
Frequently Asked Questions
How do I calculate a monthly retainer?
Multiply the hours covered by your hourly rate, then take off any discount you give for the commitment. 20 hours at $100 with a 10% discount is $2,000 − $200 = $1,800 a month.
What is a retainer?
A retainer is a fixed fee a client pays each month for an agreed amount of your time or an agreed set of work. The client gets reserved capacity and you get income you can plan around.
Do I have to give a discount on a retainer?
No. A discount is one way to make the commitment attractive to the client. Enter 0 to price the retainer at your standard rate.
What does the minimum floor do?
If the discounted figure is below the floor, the calculator uses the floor as the retainer. 12 hours at $100 less 10% is $1,080. With a $1,500 floor the retainer is $1,500, which is $125 per hour covered.
How do I price a retainer from my costs?
Add up what the work costs you each month, then divide by 1 minus the margin you want. A retainer that costs $1,100 to deliver with a 40% target margin is 1,100 ÷ 0.60 = $1,833.33.
What happens to hours the client does not use?
That depends on your agreement. Unused hours can expire at the end of the month or carry over for a limited time. The calculator prices the committed hours and does not track use.
How are extra hours charged?
Hours above the retainer are normally billed separately at a rate set in the agreement. At a standard rate of $100, 5 extra hours add $500 to that month.
Formulas and worked examples checked in October 2026.