Question 1

What is a normal retainer fee?

Accepted Answer

For one-off projects, a normal upfront retainer is 25–50% of the total project value, with 50% being the default for new clients. For ongoing monthly retainers, typical ranges are $1,000–$3,500 for junior freelancers, $2,000–$7,000 for mid-level work, and $3,000–$12,000+ for senior consultants. The right number depends on your hourly rate, the hours committed each month, and the value the client gets.

Question 2

What's the difference between a retainer and a deposit?

Accepted Answer

A deposit is a one-time upfront payment on a specific project — usually 25–50% of the total — that gets credited against the final invoice. A retainer is a recurring fee (usually monthly) that secures ongoing access to your time, typically for a fixed block of hours. Confusingly, the upfront fee on a project is often called a "retainer" too, which is why this calculator handles both modes.

Question 3

How do I calculate a monthly retainer fee?

Accepted Answer

Multiply your hourly rate by the hours per month included in the retainer, then optionally apply a commit discount of 10–20% in exchange for the guaranteed monthly hours. For example, 20 hours per month at $100/hr with a 10% discount works out to $1,800/month and an effective rate of $90/hr. The calculator does this in real time and shows the annual contract value.

Question 4

Should a monthly retainer cost more or less than my hourly rate?

Accepted Answer

Both are valid. The most common approach is a small discount (10–20%) because the client is committing to recurring hours, which gives you predictable revenue and saves you sales time. Some consultants and agencies actually charge a 15–25% premium because the retainer reserves capacity and includes priority access. Pick whichever you can defend in your market.

Question 5

Is an upfront retainer fee refundable?

Accepted Answer

It depends on what your contract says. Outside the legal industry, freelancers typically write deposits and retainers as non-refundable once work has started — but a fully non-refundable clause where no work has been done can be hard to enforce. Safer language: the deposit is credited against the final invoice and is non-refundable after work begins. Always put it in writing.

Question 6

When should I charge a retainer instead of just invoicing per project?

Accepted Answer

Charge a retainer when the work is ongoing, the client expects priority access, or you want predictable monthly income. Common cases: fractional CMO/CFO work, ongoing design or content support, monthly SEO, advisory engagements, and any client who messages you weekly anyway. If the work is a single deliverable with a clear end date, a project deposit is usually a better fit.

Question 7

How do I invoice a retainer?

Accepted Answer

For a project deposit, send an invoice for the deposit amount before work starts and a second invoice for the balance on completion. For a monthly retainer, send one invoice on the same day each month (e.g., the 1st) for the full monthly fee, due on receipt or Net 7. Avoid billing in arrears — that turns your retainer into a Net 30 invoice and kills the cash flow benefit.

Question 8

Does the retainer fee calculator work for international clients?

Accepted Answer

Yes. Pick the currency (USD, EUR, GBP, CAD, AUD, JPY, or CNY) and the calculator formats the result correctly. The math is the same in every currency. Just confirm any local rules around upfront fees, refunds, and VAT/GST with your accountant before invoicing.

Retainer Fee Calculator

Deposit breakdown