Client Billing Calculator
Model retainer and hourly billing scenarios for client engagements. Compare monthly retainer income with overtime charges and annual discounts to find the optimal billing structure.
Client Billing Calculator
Model retainer and hourly billing scenarios for client engagements
Retainer agreements provide predictable income while offering clients a discount off your standard hourly rate. The effective hourly rate accounts for both retainer and overtime hours. Annual discounts are applied to the full annual total (retainer + overtime). Adjust the overtime multiplier based on your agreement (1.5x is standard time and a half).
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Frequently Asked Questions
Should I charge retainer or hourly rates?+
Retainers provide predictable income and client loyalty. Hourly gives flexibility but unpredictable revenue. Best approach: offer a retainer with included hours and charge overtime above that. Clients get cost certainty; you get guaranteed base income.
How much of a retainer discount should I offer?+
Standard retainer discounts are 5-15% off your hourly rate. The discount buys you guaranteed hours. If your hourly rate is $125, offer $106-119/hour on retainer. Never discount more than 20% — it signals desperation and erodes your value.
What is an effective hourly rate on a retainer?+
Your effective hourly rate = monthly retainer fee / total hours worked (including admin, communication, and overtime). If you charge $4,000/month for 40 hours plus 5 overtime hours at 1.5x, your effective rate is $109.09/hour.
Should I charge retainer or hourly rates?
Retainers provide predictable income and client loyalty. Hourly gives flexibility but unpredictable revenue. Best approach: offer a retainer with included hours and charge overtime above that. Clients get cost certainty; you get guaranteed base income.
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