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Agency Retainer Pricing Calculator

Updated · Written and checked by · How we check our maths

Quick answer

A retainer price = monthly hours × blended hourly cost × (1 + margin) + pass-through tools, minus any discount for a longer commitment. 30 hours a month at a $60 blended cost with a 40% margin and $150 of tools is about $2,670 a month.

Monthly retainer

hours
$
$
%

Monthly retainer

$2,670

Effective hourly rate
$84.00
Yearly value
$32,040
Gross profit per month
$720

How this calculator works

A retainer is a fixed monthly fee for an agreed amount of work. Agencies price it from the hours they expect to spend, the cost of the people doing the work, a target margin and any tools or platform fees they pass on to the client.

A longer commitment lowers the agency's sales cost and risk, so a small discount for six- or twelve-month terms is common. The calculator shows the effective hourly rate after any discount, which is the number to compare with your project rates.

Agencies and freelancers can hide their cost and margin and put this on their pricing page, so prospects build a package and send it as a lead.

The formula

Labour
hours × blended cost × service factor × (1 + margin)
Retainer
labour × (1 − commitment discount) + tools
Effective rate
(retainer − tools) ÷ hours

Worked example

30 hours of SEO work at a $60 blended cost with a 40% margin is $2,520. Adding $150 of tools gives $2,670 a month, an effective $84 an hour and $32,040 a year.

Tips

  1. 01Define what happens to unused hours: roll over for one month, or expire.
  2. 02Review the retainer every quarter against hours actually spent.
  3. 03Charge out-of-scope work at a separate, higher rate.

Frequently asked questions

How much should I charge for a retainer?

Start from the hours you expect each month, multiply by your fully loaded cost per hour and add a 30–60% margin, then add tools you pass on.

Should retainers be cheaper than hourly work?

Slightly, often 5–15% for longer commitments, because retainers bring predictable income and fewer sales costs.

What should a retainer agreement include?

Scope, hours or deliverables, response times, reporting, what happens to unused hours and the notice period.