What it does
If you are shifting from hourly billing to a monthly retainer, this tool adds overhead, buffer, and target margin so the retainer covers more than just the delivery hours.
Freelance Rates
Retainer Pricing Calculator
Turn monthly hours, your baseline rate, overhead, and margin targets into a retainer price that is easier to justify.
Base monthly work value$2,750.00
Subtotal before buffer$3,200.00
Suggested monthly retainer$4,705.88
Effective hourly rate$188.24
How the math works
Base work value = hours per month x hourly baseline. Subtotal = base work value + monthly overhead. Suggested retainer = subtotal / (1 - buffer - margin). Effective hourly rate = suggested retainer / hours per month.
Try it with real numbers
- 25 hours a month at a $110 baseline is not the same as a $2,750 retainer once overhead, buffer, and margin targets are added.
- Retainers need more structure than hours times rate — they also absorb availability, communication, and planning overhead.
Good to know
- Retainers often bundle availability, strategy, and communication overhead that basic hourly math underprices.
- A planning tool for pricing — not a substitute for contract scoping or utilization forecasting.
- If scope fluctuates heavily month to month, pair the retainer with clear out-of-scope rules.