Retainer agreement: what to include and a template to adapt

A retainer agreement is a written contract in which a client pays you a fixed amount every month in return for a defined amount of your work or availability. Write down the scope, the fee, what happens to unused hours, how extra work is approved and how either side can stop, and the retainer stays predictable for both of you.

Search for "retainer agreement" and you will mostly find lawyers' retainers, where a client prepays for legal hours. This guide is for the other kind: a freelancer, designer, writer, editor or creator who sells a steady monthly arrangement.

What is a retainer agreement?

A retainer agreement is the document that sets the rules of a recurring monthly deal. It differs from a one-off project contract because the work never "finishes", so the agreement has to say what a month includes, what happens when the client asks for more, and how the arrangement ends.

You need one for the same reason you need any contract: a verbal retainer tends to fall apart when it is needed most, so get it signed before work begins. If you also need the wider contract (ownership, confidentiality, cancellation), see the freelance contract guide; the retainer agreement can sit on top of it or stand alone for a small job.

What should a retainer agreement include?

Include the parties and start date, the scope, the fee and invoice day, revision rules, unused-hours rules, extra work, communication, term and notice. Here is the checklist in the order a reader needs it:

Two details matter most. First, make the scope measurable: one guide contrasts "unlimited email support", which invites conflict, with a commitment such as replying to email within 24 business hours. Second, decide the revisions rule up front, because that guide notes revisions are where creative retainers often lose margin. ManyRequests' retainer guide makes the same point about vague scope: "monthly services include keyword research for 5 articles" is clear, "agreed KPIs" is not.

How much should a retainer cost?

A retainer is usually priced from your normal rate times the work you agree to, and many freelancers price it a little above their project rate because the client gets priority and availability. One freelancer guide gives an example of $75 an hour for 20 hours landing around $1,800 to $2,000 rather than $1,500. Others offer a small discount for the steady income instead. Both are choices, not rules.

Whichever you pick, work from your own hourly or per-deliverable rate. For design see graphic designer hourly rate; for creators see how much to charge for UGC. Then add a line that fees are reviewed at the end of each term, so a raise doesn't need an awkward renegotiation.

What happens to unused hours?

Decide it in the agreement, because it is the most common retainer argument. There are three options:

• Expire. Unused hours or deliverables are lost at the end of the month. Simplest, and it protects your income when a client goes quiet.
• Roll over. Unused work carries into next month, often capped at one month. More client-friendly; some freelancers allow one month of rollover as a compromise.
• Pay out. The client pays for the full retainer regardless. This is the same as expire, stated as "the fee is not reduced if the work isn't used".

Wording to adapt: "The monthly fee covers up to [10 hours / 4 deliverables]. Work not requested in a month does not carry over."

How do I handle extra work in a retainer?

Add an out-of-scope clause that turns "while you're at it" requests into a short written process. One write-up on this clause breaks it into three steps: either side can flag a request as possibly out of scope, you confirm in writing whether it is included (and, if not, give an estimate and cost), and you start only once the client approves in writing. Email is enough. For wording to answer a client's "just one more thing" and a way to bill it, see the scope creep guide.

Wording to adapt: "If a request may fall outside the monthly scope, [Freelancer] will say so in writing and give an estimate at [$ rate]. Out-of-scope work begins once [Client] approves the estimate in writing."

This keeps the moment friendly, because you are following the agreement, not refusing the client. It also gives you a paper trail and the client a price before they commit. Rush and after-hours work can carry a stated premium; the same source gives 50% extra outside normal hours as one example, which you can copy or change.

How do I end a retainer?

Put in a notice period for both sides. Thirty days is common, and it gives you time to replace the income and the client time to find a replacement. The same source suggests starting with a three-month term and a renewal review, not a six-month or annual commitment, so neither side feels trapped before trust is built.

Add what happens on the way out: finish work already requested, send a final invoice for the month, and hand over the files once it is paid. If the client stops paying, you can pause the work after a stated number of overdue days; see late payment fees and invoice payment terms for the wording.

A retainer agreement you can adapt

Copy this into a document and fill the brackets. It is a plain-language starting point, not legal advice.

Monthly retainer agreement Between [Your name] ("I") and [Client] ("Client"), starting [date]. Services. Each month I will provide [up to X hours / list of deliverables]. Work not requested in a month does not carry over. Fee. Client pays [$amount] per month. I invoice on the [day] of each month and payment is due within [7] days. Revisions. Each deliverable includes [two] rounds of revisions. New requests are extra work. Extra work. If a request may fall outside the services, I will say so in writing and give an estimate at [$ rate]. I start out-of-scope work once Client approves in writing. Communication. I reply to messages within [24] business hours, [Monday to Friday]. Term and ending. This runs for [three] months and then month to month. Either of us can end it with [30] days' written notice. I will finish work already requested and send a final invoice. Fees review. Fees are reviewed at the end of each term; any change needs [30] days' written notice. Signed: [names and dates]

Confirm it by having both sides sign or reply "agreed" by email, and keep a copy where you can find it.

How do I bill a retainer once it is signed?

Invoice on the same day every month, at the start of the period for a new client, so they pay before you do the work. A monthly retainer is often invoiced at the start of the period and due within a week; agree the day in the contract so every invoice follows the same rule. Then send the same invoice on the same day each time instead of renegotiating. The UGC retainer guide walks through that billing rhythm for creators, and it works the same for any freelancer.

This isn't legal advice. For a large or long deal, have a lawyer look at the agreement before you sign.