Retainer Scope Hours Calculator
See how many hours a monthly retainer really buys at your target rate, your effective rate on actual usage, and the value of any overage.
How it works
Included hours = fee ÷ target rate · Effective rate = fee ÷ hours used · Overage value = (used − included) × target rate
A retainer only stays profitable if the fee maps to a defined number of hours at a rate you can live with. Dividing the fee by your target rate sets the scope ceiling; dividing the fee by the hours actually delivered reveals your effective rate, which quietly collapses when a client over-uses the relationship. Tracking the gap each month tells you when to renegotiate scope or bill overage before an unprofitable retainer becomes a habit.
Worked example
A $4,000 retainer at a $100 target rate includes 40 hours. If the client used 46, your effective rate slipped to $87/hr ($4,000 ÷ 46), and the 6 extra hours represent $600 of work delivered for free — a clear signal to invoice overage or expand the scope.
Frequently asked questions
How should I price a retainer?
Start from your target hourly rate and the hours you expect to deliver, then consider a small discount for the guaranteed, predictable income. Never set the fee first and back into the hours later — that is how retainers quietly lose money.
What do I do about overage?
Agree the rule up front: either overage bills at your standard (or a premium) hourly rate, or hours roll over within limits. The worst option is silently absorbing it, which trains the client to treat the retainer as unlimited.
Should unused hours roll over?
Many agencies let a small number roll to the next month but expire them after that, so the retainer keeps rewarding steady engagement without accumulating an open-ended liability.
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Educational estimate, not financial advice.