Retainer vs Project Profitability
Which pricing model wins for your work?
Retainer Model
Project Model
📚 Learn more — how it works, FAQ & guide Click to expand
Learn more — how it works, FAQ & guide
Click to expand
Retainer vs Project Profitability Calculator
Both pricing models look attractive on paper. With churn, scope creep, and idle time factored in, the answer flips. This tool computes annual profit per FTE in each model.
How to use this tool
- 1
Retainer scenario
Monthly fee + hours allocated.
- 2
Project scenario
Avg fee + duration + frequency.
- 3
Compare profit
With churn + scope creep + idle time.
Frequently Asked Questions
When does retainer beat project?
Stable workload + high customer retention + clients who value predictability. Avg agency: 60% project, 40% retainer; the latter has 30-50% higher margin.
When does project beat retainer?
Burst workloads, premium expertise (architects, niche specialists), one-off transformations. Project rates can be 2-3× retainer effective hourly.
Should I do both?
Mature agencies do hybrid: retainer for steady cash flow + project for premium revenue. Avoid 100% retainer (concentration risk if 1 client leaves).
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