Retainer calculatorPrice a monthly retainer and see what each hour really earns
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A small discount rewards the client for committing. Keep the effective rate above your floor.
Monthly retainer
$2,700
- Effective hourly rate
- $135.00
- At your full rate
- $3,000
- Discount each month
- −$300
- Yearly value
- $32,400
How the retainer is worked out
retainer = hours × rate × (1 − discount)
effective rate = retainer ÷ hours
35 hours a month at $120 with no discount is $4,200 a month, or $50,400 a year. Offer 10% off for a 12-month commitment and it’s $3,780 a month at an effective $108 an hour. Check that number against your floor rate before you agree.
Why retainers beat one-off projects
Retainers turn lumpy project income into revenue you can forecast. Price one from your real rate, confirm the margin holds after the discount, then automate the billing. Tillage turns a retainer into a billing schedule that invoices every month on its own.
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Retainer questions
How do you calculate a monthly retainer?
Multiply the hours you reserve each month by your hourly rate, then apply any discount for the commitment. Twenty hours a month at $150 with a 10% discount is a $2,700 monthly retainer, an effective rate of $135 an hour.
Should I discount a retainer?
A small discount, often 5% to 15%, rewards a client for committing to guaranteed monthly work, and gives you predictable revenue. Keep the effective hourly rate above your floor: discount the commitment, not your worth.
What’s a good retainer structure for an agency?
Reserve a set number of hours or a defined scope each month, bill the same amount on the same date, and review usage every quarter. Steady retainers smooth out cash flow far better than one-off projects.
How do I bill a retainer automatically?
Set the retainer up once as a recurring billing schedule. Tillage issues the invoice each month and can charge your client’s saved card, so you get paid on time without rebuilding the invoice.
