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How to use
- Enter Monthly retainer value.
- Enter Hours used.
- Calculate, then review the period, scope and assumptions before using the result for pricing or planning.
How it is calculated
Effective rate = retainer value ÷ hours used
Example
A monthly retainer of 8,000 with 60 hours used gives an effective rate of about 133.33 per hour before untracked time and expenses.
Important notes
A retainer may include responsiveness and priority, not just hours; effective rate is useful for internal analysis but does not capture all service value.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Effective rate | 8000 ÷ 60 | 133.333333 |
| Retainer | 8000 | 8,000 |
Frequently asked questions
What if the client uses fewer hours?
The effective rate rises mathematically if retainer value stays fixed, but rollover rules depend on the contract.
Is the result a mandatory client price?
No. It is a planning result from your inputs; final pricing depends on scope, market, contract, taxes and risk.
Should I use monthly or annual figures?
Keep all inputs on the same period so annual income is not mixed with monthly hours or expenses.