Freelance Retainer Pricing

Calculate optimal retainer pricing for freelance services. Factor in buffer time, overhead costs, and profit margins to set sustainable monthly rates that cover all expenses.

Key Benefits:

  • Buffer time for scope creep protection
  • Overhead cost integration
  • Profit margin optimization
  • Effective hourly rate calculation
  • Break-even analysis
  • Annualized revenue projection

Retainer Pricing Setup

Enter your project details to calculate an optimal retainer price that covers costs and ensures profitability.

Share Your Scenario

Copy link with your current inputs

hours

Number of hours of work included in the base retainer each month

$

Your standard hourly rate for this type of work

%

Percentage of additional unplanned work that typically occurs (10-20% is common)

$

Fixed monthly costs like software subscriptions, admin time, tools, etc.

%

Desired profit margin percentage after covering all costs (20-30% is typical)

Results

Suggested Retainer Price
$2,966.67/month
Based on 23.0 hours with buffer
Effective Hourly Rate$128.99/hr
Break-Even Hours29.7 hours
Annualized Revenue$35,600.00

Cost Breakdown

Total Hours (with buffer)23.0 hours
Direct Labor Cost$1,725.00
Monthly Overhead$500.00
Total Monthly Cost$2,225.00

Business Insights

Strong Effective Rate

Your actual hourly rate after buffer and overhead is $128.99/hr.

Healthy Profit Margin

Your retainer price provides a solid profit margin above your costs.

High Break-Even Hours

You need to work 29.7 hours to break even - this leaves little room for profit.

Break-Even Analysis

You need to work 29.7 hours to cover all costs before profit.

Annual Revenue Potential

If this client stays 12 months, you'll earn $35,600.00 in revenue.

Cost Structure

Overhead represents 22.5% of your total costs ($500.00).

Frequently Asked Questions

How do I price a monthly retainer for freelance services?

Calculate your total monthly costs (labor + overhead), add a buffer for scope creep, then divide by (1 - profit margin %). Our calculator automates this process and shows your effective hourly rate.

What should I include in my overage buffer?

Include 10-20% buffer for unplanned work, revision requests, communication time, and small scope additions that naturally occur in client relationships.

How do I justify retainer pricing to clients?

Emphasize predictable monthly costs, priority access, dedicated time allocation, and the value of ongoing partnership. Show how retainers provide better ROI than project-based work.

What's a good profit margin for retainer services?

Target 20-30% profit margin after all costs. This supports business sustainability, allows for reinvestment, and provides buffer for market fluctuations.

How often should I review retainer pricing?

Review annually or when costs change significantly. Market conditions, skill development, and business growth may warrant pricing adjustments.

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Results are estimates for informational purposes only. Consult professionals for important decisions.

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