Retainer pricing calculator
Work out a monthly retainer that pays for the hidden time too: the calls, reports and small requests that never make it onto a timesheet. Check your margin before you send the proposal.
Your retainer
Start from the delivery hours a month the client needs.
$3,918.75 / month
- Hours priced (incl. management and buffer)37.5
- Fee before discount$4,125.00
- Fee after discount$3,918.75
- Effective rate per delivery hour$130.63
- Delivery cost per month$1,687.50
- Gross margin on the fee57%
- Contract value (6 months)$23,512.50
Agree what happens to unused hours (expire, or roll over for one month) and how extra work is quoted, before the first month starts.
How the price is built
Most underpriced retainers count only the delivery hours. The client also pays, whether you charge for it or not, for the time spent planning, reporting and handling small requests. The calculator prices that time explicitly.
Fee = hours priced × hourly rate × (1 − commitment discount)
Monthly price = fee + pass-through costs
Gross margin = (fee − hours priced × your cost per hour) ÷ fee
Worked example
A content and social media retainer: 30 delivery hours a month at $110 an hour, 15% for account management, a 10% scope buffer and a 5% discount for a six-month commitment. Delivery costs the agency $45 an hour.
| Hours priced | 30 × 1.25 = 37.5 hours |
| Fee before discount | 37.5 × $110 = $4,125 |
| Monthly retainer | $4,125 × 0.95 = $3,918.75 |
| Effective rate per delivery hour | $130.63 |
| Delivery cost | 37.5 × $45 = $1,687.50 |
| Gross margin | about 57% |
| Six-month contract value | $23,512.50 |
Priced on delivery hours alone, the same retainer would be $3,300 a month, and the account management time would come out of the agency’s margin.
What to agree before the first month
- What is included. List the recurring deliverables, not just the hours. Clients buy outcomes.
- Unused hours. Expire monthly, or roll over for one month. Write it down.
- Extra work. An agreed overage rate, and a change request for anything outside scope.
- Reporting. What the client receives each month and when.
- Term and notice. The minimum term, and the notice either side must give to end it, often 30 days.
- Billing. Invoice in advance at the start of each month, with clear payment terms.
A statement of work is the usual place to record all of this.
Retainer pricing questions
How do I price a monthly retainer?
Estimate the delivery hours the client needs each month, add time for account management (calls, reporting, planning) and a small buffer for unplanned requests, then multiply by your hourly rate. Apply a discount only if the client commits to a longer minimum term.
What is a good margin on a retainer?
It depends on your costs and market, but many agencies aim for a gross margin of 50% or more on retainer fees so there is room for overheads and the occasional heavy month. If the calculator shows under 40%, the price is probably too low for the hours involved.
Should unused retainer hours roll over?
Decide before you start and write it into the agreement. Common options are that unused hours expire each month, or roll over for one month only. Unlimited rollover tends to build up a backlog you cannot deliver.
Hours-based or deliverables-based retainer?
An hours-based retainer buys a block of time each month and suits ongoing support. A deliverables-based retainer buys a fixed output, such as four blog posts or a monthly report, and suits predictable work. Many agencies price deliverables using the hours behind them, which is what this calculator does.
How long should the minimum term be?
Three to six months is common, because most retainer work, such as SEO, content or social media, needs time to show results. Longer terms can justify a small discount.
How do I handle extra work outside the retainer?
Agree an overage rate in advance and use a short change request for anything outside the agreed scope. That keeps small extras from quietly eating your margin.
Should I include VAT, GST or sales tax?
Add any sales tax on top of the retainer price when you invoice, if you are registered or required to charge it. The fee in this calculator is before tax.
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Updated September 2026. General information, not financial, tax or legal advice. Check the rules where you work.