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What Is a Retainer?

An agreed, advance arrangement to keep a provider available

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The main types of retainer

Retainers differ in what the client is buying, so the agreement should say which kind it is.

  • A fixed fee for an agreed scope of work each month
  • A set number of hours each month, at an agreed rate
  • An availability fee that reserves the provider's time
  • A prepaid balance that each piece of work is billed against

What the agreement should say

Settle these points in writing before the first payment.

  • The amount, the billing date and the payment terms
  • What is included, and what is billed on top
  • What happens to unused hours or unspent balance
  • How the arrangement can be changed or ended, and the notice required

A worked example

A client agrees a retainer of 1,500.00 a month for up to 10 hours of work, with extra hours at 175.00. In one month the provider works 12 hours.

The invoice shows the retainer of 1,500.00 and 2 extra hours at 175.00, which is 350.00, for a total of 1,850.00.

Invoicing a retainer

Issue a regular invoice for the retainer amount on the agreed date, and show any extra work as separate lines. Our guide on recurring invoices and retainers covers the four models and how to price them.

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Frequently Asked Questions

What is a retainer?

An agreed payment, usually made in advance on a regular schedule, to secure a provider's time or services over a period.

Is a retainer refundable?

That depends on the agreement and the law that applies. Say in writing what happens to unused hours or balance, and check the rules that apply to you.

Is a retainer the same as a deposit?

Not always. A deposit usually secures one job and comes off the final price. A retainer usually covers an ongoing arrangement and recurs.

How do I invoice a retainer?

Issue an invoice for the agreed amount on the agreed date each period, and add separate lines for any work outside the retainer.

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