Free calculator
Did the retainer run over, and did you bill it?
Retainers drift. Put in the last three cycles and see how many hours went over the included amount, and what happened to them.
Your retainer
Example numbersWhat the retainer covers each cycle. Example: 20.
What the client pays for the included hours. Example: 3,000.
What an hour over the included amount costs the client. Example: 160.
Unused included hours carry into the next cycle, up to a cap. We start the first cycle with nothing carried in.
The most hours that can carry into the next cycle. Example: 5.
Example result
Extra hours over three cycles: 9 hours worth A$1,440, of which A$1,120 was not billed. Effective rate on the retainer A$135 an hour.
- Extra hours billed
- A$320
- Extra hours not billed
- A$1,120
- Hours over the hours available
- 9 (7 not billed)
- Effective hourly rate on the retainer
- A$135
If every extra hour had been billed, that rate would have been A$151 an hour.
Cycle 2 is where it tipped: the first one over the hours available.
| Cycle | Worked | Available | Extra | Not billed |
|---|---|---|---|---|
| 1 | 18 | 20 | 0 | 0 |
| 2 | 24 | 22 | 2 | 2 |
| 3 | 27 | 20 | 7 | 5 |
Email me this result
Optional. We’ll send the numbers above and the retainer agreement template. A couple of short follow-up emails from Darren come after that, and every one has an unsubscribe link.
Your numbers stay in your browser. Nothing is sent anywhere unless you email yourself the result.
How this is worked out
Available hours in a cycle = included hours + any hours carried in from the last cycle. We start the first cycle with nothing carried in, because we only know the three cycles you give us.
Extra hours= hours worked − available hours, when that is above zero. Carried out = unused hours, up to your rollover cap, if unused hours roll over (otherwise nothing). Carried hours are used first.
Extra hours revenue= extra hours × your rate for extra hours. Billed uses the extra hours you say you invoiced (never more than the extra hours there were), and not billed is the rest.
Effective hourly rate= (three retainer fees + extra hours billed) ÷ total hours worked. The line under it shows the same sum if every extra hour had been billed.
The cycle it tipped = the first of the three where hours worked went past the available hours.
Worked example with the Example numbers: 20 included hours, 18, 24 and 27 worked, rollover capped at 5. Cycle 1 leaves 2 unused, which carry in, so cycle 2 has 22 available and 24 worked is 2 extra hours. Nothing is left to carry, so cycle 3 has 20 available and 27 worked is 7 extra hours. That is 9 extra hours at 160, which is 1,440. Only 2 hours (320) were invoiced, so 1,120 was not billed. Fees of 9,000 + 320 billed over 69 hours is 135.07 an hour, against 151.30 if all 9 had been billed.
A cycle is whatever period your retainer runs on, so the numbers work for any of them. Hours worked is what was logged to the retainer, not what you wish was logged. This doesn’t know your contract terms, so check the rate for extra hours and the rollover rule against what you actually agreed.
Where Handl comes in
Handl's retainers carry included hours, a rate for extra hours and a rollover cap, and flag the extra hours before the cycle ends.
Prefer a spreadsheet?
Want the rules in writing? The free retainer template caps the hours, sets the rollover rule and spells out what happens when the client goes over, so it never turns into unlimited work for a fixed fee.
See it on your own projects.
Handl turns logged hours and costs into invoices and a live margin, so you are not rebuilding this in a spreadsheet every time.
Not accounting advice. This is an estimate worked out from the numbers you type in, nothing more.