What should this retainer actually cost?
Retainers get underpriced when they're quoted off gut feel instead of hours and margin. This calculator turns included hours and a target margin into a defensible monthly price.
What it means
Retainer pricing here means working backward from the cost of the included hours and a target profit margin to a recommended monthly price, then showing the profit and effective hourly rate that price produces.
Why it matters
Retainers are easy to underprice because the monthly number feels abstract compared to a project fee. Pricing off cost and margin instead of a round number protects profitability as scope or team cost changes.
Try it with your own numbers
Price this retainer at about $1,571/month to hit your margin
$1,571
Recommended monthly retainer
$471
Monthly profit
$79
Effective hourly rate
$18,857
Annual retainer value
Recommendations
- Build in a buffer for overage hours so a busy month doesn't erase the margin.
- Review retainer scope quarterly to make sure included hours still match actual client demand.
- Compare the effective hourly rate here against your project work rates to keep pricing consistent.
Suggested next steps
- Document what's in and out of scope before sending the retainer agreement.
- Set up recurring invoicing so the retainer bills automatically each month.
Relevant Sarion features
Every client, fully organized
Nobody on the team has to ask "does anyone know where that came from?" again.
- Client records
- Notes
- Activity history
- Search
Never lose track of a payment
Overdue invoices get chased before they turn into bad debt.
- Paid
- Unpaid
- Overdue
What's typical
Typical agency retainer margin
25-40%
Healthy overage buffer
10-15% of included hours
Retainer scope review cadence
Quarterly
What actually moves this number
- Build in a buffer for overage hours so a heavier month doesn't erase the margin.
- Review retainer scope every quarter to keep included hours aligned with actual client demand.
- Compare the effective hourly rate against project work rates to keep pricing consistent across both.
Where this usually goes wrong
- Pricing retainers the same as one-off project work without adjusting for ongoing commitment and risk.
- Not clearly defining what falls outside the retainer scope, leading to scope creep at no extra cost.
- Letting included hours creep upward over time without renegotiating the price.
Common questions
Why cap the desired margin at 95%?
As margin approaches 100%, the pricing formula divides by a number approaching zero, producing an unrealistic price. Capping it keeps the recommendation sane.
Does this include overage hours?
No — this prices only the included hours. Add a separate overage rate or buffer for months that exceed the included hours.
How often should I re-run this?
Whenever team hourly cost changes materially, or at your quarterly scope review, so the retainer price keeps pace with real costs.
Put these numbers to work
Sarion is where the client records, invoicing, and portal behind these numbers actually live.