A monthly retainer is a set amount a client pays you each month. In return, you do work for them, keep time free for them, or both.
To see if the fee works for you, look at two things: the time you spend working and the time you keep free for the client.
See how it works for Sam
Let’s say Sam is a designer. One client pays Sam $1,200 each month to look after their website.
Some months are quieter than others:
- A quiet month: Sam works 4 hours. That works out to $300 for each hour worked, before business costs.
- A busy month: Sam works 12 hours. That works out to $100 for each hour worked, before business costs.
The client pays the same $1,200 in both months. The hourly amounts help Sam see how the month went: a busy month spreads the same fee over more hours.
If Sam does no work in a month, there is no hourly amount for that month. The client may still be paying Sam to keep time free.
Sam keeps Friday mornings free for this client. Sometimes the client doesn’t need help, so Sam doesn’t use all that time for them.
Sam may be able to do other work during a quiet Friday. But if Sam has promised to be available, they may not be able to commit that time to another client.
That’s the part the hourly amount misses: the opportunities Sam may give up to stay available.
Check your own retainer
Now apply the same test to your own retainer.
Calls, preparation, and short replies count as work too. Include them even if the client doesn’t get a list of hours.
Compare the hourly figure with your target rate. The freelance rate calculator works out a target rate from your costs and the hours you can bill. If a busy month lands well below that rate, the fee may be too low for that much work.
Time you keep free counts too. If you keep a regular slot for a client, you may not be able to take other work in that time. The hourly amount only covers the hours you worked, not the time you kept free to stay available.
One quiet month doesn’t mean the fee is too high. Look at a few months before you decide whether the work and the fee still fit.
Agree on the details
Before you start, talk with your client about:
- The work: What is included in the fee?
- The hours: If there is a set number of hours, what happens to unused time?
- Your time: When can the client ask for help, and how soon will you reply?
- Extra work: What will you do if the client needs more than you planned?
A retainer doesn’t have to include a set number of hours. It can cover availability, ongoing services, or agreed work. What matters is what you and the client agree the fee covers.
Look back each month
Write down the work you did and how long it took. Also note any time you kept free for the client. If you work with several clients, time tracking for consultants shows how to keep each client’s record separate.
If the work keeps taking longer than planned, you could offer to do less or talk about a higher fee. If the client needs less work but still wants quick replies, you could discuss a smaller amount of work and keep the reply time clear.
TimeRetain can keep your work and notes together. Paper or a spreadsheet works too.
Keep a clear record for your next retainer review in TimeRetain.
Questions and answers
What is a monthly retainer?
A monthly retainer is a set amount a client pays you each month. It can cover work you do, time you keep free for them, or both.
How do I find out what a retainer pays per hour?
Divide the monthly fee by the hours you worked on the retainer. Include related work you don't bill separately; the result is before costs and leaves out time you kept free but did not work on the retainer. If you worked no hours, there is no hourly amount; look at the fee and time you kept free instead.
What happens to unused retainer hours?
If your retainer includes a set number of hours, your agreement should specify whether unused hours expire or carry over. Retainers based on availability or deliverables may work differently.
Should I lower the fee after a quiet month?
Not necessarily. Look at a few months and think about the time you kept free for the client before you decide.
