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Retainer vs Hourly Calculator
A retainer is predictability for both sides. Enter the fee, included hours, overage and the admin time it saves to see whether it beats hourly billing.
The retainer advantage adds the value of admin time saved to the retainer side. If the same admin exists under both models, set it to zero.
A retainer is a price for availability
The client pays for a block of hours and the option to use them; the freelancer trades upside for a predictable month. The comparison should include the overage rate and the admin time the arrangement removes. Invoicing, chasing and scheduling every small task has a cost, and a retainer can remove most of it.
The break-even hours show how many hours the fee buys at the hourly rate. Below that line, the client is paying for availability; above it, the overage should be doing the work.
Price the overage before you need it
A retainer without an overage rate becomes unlimited work at the effective rate, which is the same scope-creep problem with a monthly invoice. Set the included hours, the overage rate and the notice period in the contract. If the client regularly exceeds the block, the fee is wrong, not the client.
Frequently asked questions
Should unused hours roll over?
Only if you price the rollover. Rollover turns the retainer into a bank the client can draw down later, which can collide with the next month's capacity.
What is a fair retainer discount?
There is no universal number. The discount should reflect the value of predictability and lower admin, not a round percentage. Run the comparison and see what the effective rate becomes.
Does the calculator include taxes?
No. Use pre-tax figures consistently, or net figures consistently. The comparison is about the billing model, not the tax treatment.
What if hours vary a lot?
Model a low, average and high month. A retainer that only works in the average month is fragile; the overage rate and a capacity cap protect the high month.