Retainer or hourly: which pays more?
Compare a fixed monthly fee with billing by the hour, including what happens when the client uses more or fewer hours than planned.
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- Retainer pays per hour worked
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- Hourly billing would earn
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- Break-even hours per month
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- Retainer vs hourly, hours 30% lower
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- Retainer vs hourly, hours 50% higher
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Reading the comparison
Below break-even hours the retainer pays more than hourly billing. Above it, hourly wins. The two scenario rows show how sensitive the deal is to the client's real usage.
When is a retainer the better deal?
When work is steady and predictable, and you'd rather have reliable income and an easier invoicing routine. It also stops the client from watching the clock on every message.
How do I protect myself on a retainer?
State the hours or deliverables it covers, what happens to extra work, and whether unused hours roll over. Without limits, a retainer can quietly turn into a discount.