← Freelance retainer calculator
Retainer vs hourly: unused hours pay you; unpaid extras do not.
Freelancers search this because a 20-hour block looks clean on a proposal and messy three months later. The question is not “is a retainer better.” It is “better at what usage.”
On the calculator’s default plan — $6,000 take-home, $1,800 costs, 160 available hours, 65% utilization, 20 included hours, 15% buffer — the floor is $75/hr and the retainer is $1,725. Full use is $86.25/hr. That is the buffer working.
| If they use | Hours | You collect | Hourly would collect | Effective $/hr | Covers floor? |
|---|---|---|---|---|---|
| 50% of the block | 10 h | $1,725 | $750 | $172.50 | Yes |
| 75% of the block | 15 h | $1,725 | $1,125 | $115.00 | Yes |
| 100% of the block | 20 h | $1,725 | $1,500 | $86.25 | Yes |
| 125% of the block | 25 h | $1,725 | $1,875 | $69.00 | No |
The unpaid-overage break-even is $1,725 ÷ $75 = 23 hours. Past that, every extra hour without a billed overage line is a gift. Bill those 5 extra hours at the floor and 25 hours still pays $84/hr — the buffer, restored.
The 10-hour month is the other failure mode. You collected $975 more than hourly. The client paid for access they did not use. That is the usual reason a light-use retainer does not renew. Shorten the block or stay hourly if that is the real pattern.
Open the calculator, enter your own income goal and included hours, and read the table before you send the proposal. After the price looks right, check whether unused hours that roll over still cover the floor, then check whether Net 30 still leaves you able to float first cash. Nothing is uploaded.
This page is arithmetic, not financial or legal advice. It does not tell you to accept, reject, or rewrite a contract. Hosted URLs, when they exist, carry no availability SLA.
Common questions
Is a retainer better than hourly for a freelancer?
It depends on how many hours the client actually uses. A retainer pays you more when usage is light and less when they exceed the unpaid break-even without billed overage. On a $1,725 / 20-hour block with a $75 floor, 10 hours of use is $172.50/hr for you and 25 hours with no overage is $69/hr.
How do I know when a retainer stops covering my hourly rate?
Divide the monthly price by your hourly floor. That many hours is the unpaid-overage break-even. Put billed overage at the floor rate in the agreement so months above that number still cover.