Developed and maintained by ProWorkstack · Development and review process
Calculate a retainer price from delivery hours, overhead allocation and your chosen gross-margin target.
Your results
Enter your inputs and select Calculate.
How this calculator works
Cost = delivery hours × total hourly cost + allocated overhead + outside costs. Price = cost ÷ (1 − target margin fraction), provided margin is below 100%. Money left after variable costs = price − cost. Margin uses selling price as its denominator; it is not cost markup.Worked example
Thirty hours at 50 plus 300 overhead and 200 outside costs gives 2,000 monthly cost. A 35% target margin needs 2,000 ÷ 0.65 = 3,076.92 price. Money left after variable costs is 1,076.92.Assumptions
Defaults are illustrative. Replace them with your own measured quantities and documented assumptions. Use matching periods and a consistent currency wherever monetary amounts are entered.Interpreting your results
This does not establish a market-clearing price or draft a contract. Scope changes, taxes, collections risk and unused capacity are excluded. A 100% margin is not calculable for positive cost and is marked not applicable.Calculation formulas
- cost
hours*rate+overhead+outside- price
SAFE_DIV(cost,1-margin/100,0)- Monthly retainer price for your target margin
price- Monthly delivery and overhead costs
cost- Money left after entered costs
price-cost
Frequently asked questions
What should I check before using the result?
State delivery hours, revision limits, response expectations and outside charges. Use a total cost rather than the desired billing rate, or the cost base will already contain profit.
Does this tool connect to my records?
No. This is a local calculation from the figures you enter. It does not scan accounts, import private records or verify legal, regulatory or exam requirements.
Maintained by ProWorkstack · Last reviewed: 2026-10-04 · Development and review process