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Law Firm Retainer Fee Calculator

Size a retainer and see how long it lasts at the expected burn rate before it needs replenishing.

Your numbers

$
$
$
%
As a share of the original retainer.

Result

Months the retainer covers 2.8
Monthly burn $2,715
Replenish when balance reaches $1,875
Replenish in month 2.1
Retainer needed for a year $32,580
At $2,715 a month the retainer lasts 2.8 months, and hits the $1,875 replenishment trigger in month 2.1. A full year at this pace needs $32,580.

Business arithmetic for running a practice, not legal advice. Fee agreements, contingency limits, trust accounting and fee splitting are governed by the rules of professional conduct in your jurisdiction, and several of them are strict. Check the applicable rules before any of this affects a client agreement. Retainer funds are usually client money held in trust and drawn down only as fees are earned and billed, and the accounting rules around that are strict and strictly enforced. Commingling trust and operating funds is among the most serious professional violations there is.

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Questions

About this calculator

What is an evergreen retainer?

One that replenishes to its original level whenever it falls below a trigger, so the firm is never working against an empty balance. It largely eliminates collection risk where the client agrees to it.

Can I treat the retainer as income when received?

Generally not until it is earned. Unearned retainer funds are client money held in trust, and the rules on holding, accounting for and drawing on them are specific to each jurisdiction.

The formula

months covered = retainer / monthly burn; replenishment trigger = retainer x trigger share

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