How to use freelance retainer calculator
- Enter included monthly hours and your internal hourly rate.
- Add fixed monthly costs and a contingency.
- Enter expected actual hours and an overage rate.
- Check retainer, overage and expected margin.
Example
Ten included hours at $100, $100 fixed costs and a 10% contingency suggest $1,210 per month before possible overages.
How the calculation or document works
Retainer = (included hours × hourly rate + fixed costs) × (1 + contingency %). Overage = max(0, expected − included) × overage rate.
Frequently asked questions
Is the displayed effective rate a cost?
No. It is expected total revenue divided by expected hours.
Should unused hours roll over?
That is a contract decision; define it clearly with the client.
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