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How to use
- Enter Monthly retainers.
- Enter Average retainer value.
- Calculate, then review the period, scope and assumptions before using the result for pricing or planning.
How it is calculated
Example
Eight monthly retainers averaging 5,000 give 40,000 monthly recurring revenue and 480,000 annualized if count and value remain stable.
Important notes
Annualized recurring revenue is not a guarantee; renewals, client losses or price changes can make actual yearly revenue differ.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Monthly recurring | 8 × 5000 | 40,000 |
| Annualized | 40000 × 12 | 480,000 |
Frequently asked questions
Should one-off projects be included?
Not when measuring recurring revenue only; keep one-off projects separate and add them in total revenue forecasts.
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.