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Unused hours that roll over are unpaid work next month.
Clients ask for rollover because a quiet first month feels like they overpaid. The clause they want is a second month where you deliver the leftover for free. Price that gift before you write it.
UNPAID HOURS NEXT MONTH
| If the agreement says | Hours rolled | Month 2 hours | Month 2 $/hr | Covers floor? | Unpaid gift |
|---|
How the gift is calculated
Month 1 unused hours = included hours minus hours they actually used. Month 2 hours under unlimited rollover = new-block hours plus that leftover. Month 2 effective rate = monthly price ÷ those hours. The unpaid gift is leftover hours × hourly floor.
- Default $1,725 / 20 hours / $75 floor.
- Month 1 at 50%: 10 hours used, 10 leftover.
- Expire: month 2 is 20 hours at $86.25/hr. Gift $0.
- Cap at the 3-hour buffer: month 2 is 23 hours at $75/hr. Gift $225.
- Unlimited rollover: month 2 is 30 hours at $57.50/hr. Gift $750.
The 3-hour buffer is the unpaid-overage break-even minus included hours ($1,725 ÷ $75 − 20). A cap there keeps a catch-up month on the floor. Unlimited rollover spends that buffer and then some.
What to put in the agreement
Write “unused hours expire at month-end” or “up to N unused hours may roll once, then expire or bill at the floor.” Do not write “hours roll over” with no cap and no expiry. A quiet first month plus a catch-up second month is the usual pattern after a kickoff delay, a vacation, or a stakeholder who was not ready.
Price the block first, then check rollover, then check the float. Open the retainer calculator to pair this with usage. Retainer vs hourly is the one-month view. Payment terms is the cash-float view.
This page is a planning aid, not financial or legal advice. Review the numbers and the contract before you send either. Hosted URLs, when they exist, carry no availability SLA.
Common questions
Should unused retainer hours roll over?
Only if the rolled hours still leave month 2 at or above your hourly floor. On the default $1,725 / 20-hour plan, a 10-hour first month plus unlimited rollover into a full second month is 30 hours for $1,725 — $57.50/hr, $750 of unpaid time. Cap rollover at the 3-hour buffer and month 2 stays at $75/hr.
How do I cap unused-hour rollover without killing the deal?
Cap rolled hours at the unpaid-overage buffer — monthly price divided by hourly floor, minus included hours. On the default plan that is 3 hours. Hours above the cap expire or bill at the floor.