Solo Biz Soft Editorial Team A retainer fee is money paid in advance to secure someone’s services or availability. The term is used in two main ways, and it helps to know which one people mean.
Meaning 1: a recurring fee for ongoing work
A client pays a set amount each month for a defined amount of work, such as ten hours of design, four blog posts or being available for support. This is what most freelancers and agencies mean.
Meaning 2: an advance payment
Some professionals, such as lawyers, ask for a retainer as an upfront deposit that is held and used to pay for future work. Rules on how the money is held and used differ by country and profession.
Retainer vs project fee
| Retainer | Project fee | |
|---|---|---|
| Payment | Regular, often monthly | One-off or by milestone |
| Scope | Ongoing, defined per month | A defined piece of work |
| Best for | Continuous needs | One-off goals |
| Income for provider | Steady | Lumpy |
How to set one up
- Decide what is included each month and what is not.
- Say what happens to unused hours.
- Set a start date, a review date and a notice period.
- Invoice at the start of each month.
For pricing and sample wording, read how to price a freelance retainer.
Frequently asked questions
Is a retainer refundable?
It depends on the agreement and local rules. State it clearly in writing.
How much is a typical retainer?
It depends on the work and the market. Price it from your hourly rate and the hours involved, using the freelance hourly rate calculator.
Can a client cancel a retainer?
Usually with the notice stated in the agreement.
Related reading: Freelance Retainer Agreements · Freelance Contract Template
This article is general information, not legal or tax advice. Rules differ by country, so check what applies to you.