How does a retainer agreement work?

The client pays a fixed fee every month, usually in advance, and in return gets a set number of hours, a set list of deliverables, or priority access to you. Work outside what the retainer covers is quoted separately.

What happens to unused retainer hours?

Whatever the agreement says. The three common rules are: unused hours expire at the end of the month, they roll over for one month only, or they roll over up to a cap. Write the rule down; it is the most common source of retainer disputes.

How much should I charge for a retainer?

Start from your hourly rate times the hours included, then decide whether to discount it for the guaranteed monthly income. Many freelancers keep the full rate and offer priority response times instead of a discount.

Is this retainer agreement template legally binding?

Once signed by both parties it is generally a binding agreement, but enforceability depends on your country or state. It is a starting point, not legal advice.

Free template

Retainer agreement template

A retainer agreement turns one-off projects into steady monthly work: the client pays a set fee each month for agreed hours or output. Download a blank retainer in Word or PDF, or read a filled-in example for a 20-hour monthly retainer.

Download Word (.docx) Download PDF See a filled-in example

Free, no sign-up. A starting point, not legal advice.

Filled-in example, page 1

Pick one retainer model first

The template asks you to choose one. Mixing them is where retainers go wrong.

Model	The client pays for	Works best when	Watch out for
Hours	A bank of hours each month	Work is varied and hard to predict	Arguments about unused hours
Output	A fixed list of deliverables each month	Work repeats: 4 posts, 1 newsletter, 1 report	Scope creep inside each deliverable
Access	Being available, with priority response	Advice, on-call support, maintenance	The client feeling they pay for nothing in quiet months

The filled-in example uses hours: 20 a month for €1,600, with a short list of what those hours cover.

Pricing it

Work out the monthly fee from three numbers:

Hours per month you expect the work to take. Look at the last three months if this client already works with you.
Your hourly rate. In the example, €85, the same rate used for extra hours.
Whether to discount. 20 hours at €85 is €1,700; the example charges €1,600, a small discount for guaranteed income and a 3-month minimum.

Then set the rate for hours beyond the allowance. Keeping it at your full rate stops the retainer from turning into cheap overflow work.

Unused hours: choose a rule and write it down

Rule	Good for you	Good for the client
Expire at month end	Predictable workload	Feels like paying for nothing in a quiet month
Roll over one month only	A fair middle ground	Some flexibility
Roll over up to a cap	Fine if the cap is small	Most flexibility

The example rolls over up to 5 hours for one month, then they expire, and hours are never refunded.

The clauses in the template

What the retainer covers: the hours or deliverables, plus a list of included work.
Fee and billing: billed in advance on a fixed day, with a separate rate for extra hours.
Unused hours: the rule from above.
Requests and response times: how the client asks, and how fast you confirm.
Reporting: a short monthly summary of hours used and work done. It is what keeps retainers renewed.
Term, changes and cancellation: a minimum term, then month to month with notice.
Ownership and confidentiality: or a line pointing to your service agreement if you have one.

Send the monthly report as a link

Retainers renew when the client sees the value. Send the monthly summary as a Snapy.host link and you get an email when they open it, free. With Pro you see how long they spent on it, a useful early warning before a renewal conversation.