Client Retainer Break-Even Calculator
Enter your monthly retainer fee, expected hours of work, overhead costs, and target hourly rate to see your effective rate and break-even point.
About this calculator
Determine how many billable hours you need per month under a retainer agreement to break even against your target hourly rate and overhead costs.
Frequently Asked Questions
What does break-even hours mean here?
It's the number of hours you'd need to work under the retainer for your net revenue per hour to match your target hourly rate — working fewer hours than this means you're effectively earning above your target rate, and more means you're earning below it.
Why include a utilization rate?
Freelancers and consultants rarely bill 100% of their available hours due to admin work, meetings, and downtime, so factoring in realistic utilization gives a more accurate picture of retainer profitability.
How can I use this to price a retainer?
Compare the effective hourly rate to your target rate — if it's lower, either raise the retainer fee, reduce expected hours, or clarify scope to avoid working extra unpaid hours.