Retainage Calculator for Progress Payments
Retainage is money you have already earned that somebody else is holding. This works out how much is being held right now, what is payable on this application, and what will be sitting there at closeout.
Worked example
These are the figures the calculator opens with and the answer it gives. Change anything above and every number below moves with it.
- Contract amount120000 $
- Retainage10 %
- Work completed to date60 %
- Already paid to you54000 $
Payable on this application$10,800.00
| Contract amount | $120,000.00 |
|---|---|
| Work completed | 60% |
| Earned to date | $72,000.00 |
| Retainage held at 10% | $7,200.00 |
| Less already paid | $54,000.00 |
| Due on this application | $10,800.00 |
| Retainage held at completion | $12,000.00chase this at closeout |
What this calculator assumes
- Retainage is money you have earned that is held back until the job closes out. It is not a discount and it is not a deposit.
- Most states cap retainage on public work, commonly at 5 or 10 percent, and several require it to be released or reduced at substantial completion. Private contracts are freer and often worse.
- Retainage is usually the last money a contractor sees and the first thing forgotten at closeout. Track it separately from the invoice balance.
What it is and what it is not
Retainage is a percentage withheld from every progress payment until the job is complete, typically 5 or 10 percent. It is not a deposit, not a discount, and not a contingency. It is your money, earned, held as security for completion.
Track it separately from the invoice balance. It is the last money on the job and the first thing forgotten at closeout, and a contractor who does not track it will eventually write some of it off out of sheer exhaustion.
The squeeze at the bottom of the chain
A 10 percent retainage on a job with a 10 percent margin holds back your entire profit until the day the last punch item is signed off. That is the structural problem with retainage and it is why it hurts subcontractors more than anyone.
Most states cap retainage on public projects, commonly at 5 percent, and many require release or a step down at substantial completion. Iowa cut its cap on public improvement contracts from five percent to three from July 1, 2025. Private contracts are usually freer and often worse, though not everywhere: California caps retention at 5 percent on many private jobs contracted from January 1, 2026, New York makes void a clause requiring retainage above five percent of the contract sum, in the construction contracts that part of its General Business Law covers, and Colorado, which already capped private retainage at five percent, now lets a contractor or sub post a bond in its place on contracts created from August 12, 2026. Read the clause before you sign, because that is the only moment you can change it.
Questions people ask
What is retainage in construction?
A percentage of each progress payment withheld until the work is complete. It is money you have earned but cannot collect until closeout.
Free Contractor Invoice Template, free, no signup, PDF Word and Excel.
California SB 61 caps retention at 5 percent on many private jobs contracted from January 1, 2026, though most work on an ordinary house is outside it.
Colorado HB26-1311 lets a contractor or sub on a private job post a retainage bond in place of retainage, on contracts created from August 12, 2026. Colorado's private job statute already capped retainage at five percent.
Iowa SF 574 cut the cap on retainage on public improvement contracts from five percent to three, from July 1, 2025. Chapter 573, which it amends, is about public improvements, not private jobs.
New York A5405 makes void a clause requiring retainage above five percent of the contract sum, in the construction contracts that part of its General Business Law covers, from December 19, 2025.
Common sizes, worked out
The same calculator with the numbers already filled in, one page per size, each ending in its own material list.