Retainer Hours Calculator
Work out how many hours a monthly retainer buys, the effective hourly rate, and whether a discounted retainer still pays.
How it works
Effective rate = standard rate × (1 − discount%) · Included hours = retainer ÷ effective rate
A retainer trades a lower hourly rate for a guaranteed monthly commitment. Divide the fee by the discounted rate to see how many hours you owe each month, and confirm that number is one you can reliably deliver — over-promising hours is the classic way a retainer turns unprofitable. The client saving shows the value they get versus paying your standard rate ad hoc.
Worked example
A $3,000 retainer with a 15% discount off a $120 rate gives an effective rate of $102. That buys 3,000 ÷ 102 ≈ 29 hours a month. At the full $120 rate those 29 hours would cost about $3,529, so the client saves roughly $529 for committing.
Frequently asked questions
How many hours should a retainer include?
Divide the fee by your discounted rate. Then sanity-check that you can consistently deliver that many quality hours every month — a retainer only works if the scope fits inside the hours it funds.
Do unused retainer hours roll over?
That is a policy choice. Many firms use "use it or lose it" monthly retainers to keep revenue predictable; others allow limited rollover. Whichever you pick, state it clearly in the agreement.
Why discount a retainer at all?
The discount compensates the client for committing to guaranteed monthly spend, which gives you predictable revenue and reduces your sales effort. If the commitment is not real, there is little reason to discount.
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Educational estimate, not financial advice.