Retainage Calculator
Retainage is the share of each payment the owner or general contractor holds back until the job is done. See how much is held on your contract and what you should be paid on this pay application.
- Enter the contract amount, including approved change orders.
- Enter the work completed to date and the retainage percentage from your contract.
- Add previous payments to see what is due on this application.
This is an estimate, not legal or accounting advice. Your contract and your state’s retainage law control how much may be held and when it is released.
Save this project in LienWarden. LienWarden tracks the lien and bond-claim dates that protect your retainage, so the money held back stays collectible. Your first project is free and you can start without an account.
How the numbers are worked out
The calculator follows the lines of a standard construction payment application:
- Retainage held = work completed to date × retainage %.
- Earned less retainage = work completed to date − retainage held.
- Payment due = earned less retainage − previous payments.
- Balance to finish = contract amount − earned less retainage. It includes the retainage still held, because that money is part of what you are owed.
Example: on a $100,000 contract with 10% retainage and $40,000 of work done, $4,000 is held and $36,000 is earned. If you have already been paid $27,000, this application should ask for $9,000, and $64,000 remains to finish.
Limits
Some contracts drop the retainage rate once the job passes a milestone, hold a different rate on stored materials, or release retainage in stages. Enter the rate that applies to this application, or run the calculator once per rate. Public projects and some states cap retainage by law; your contract and the statute decide what applies to you.
Retainage is often the last money paid on a job, which makes it the money most at risk if the owner or general contractor runs into trouble. The lien and bond-claim deadlines that protect it keep running while it sits unpaid. Use the mechanics lien deadline calculator to see them, and read what retainage means in construction for the background.
Questions
What is retainage in construction?
A portion of each progress payment that the owner or general contractor holds back until the project, or your part of it, is complete. It gives the payer leverage to get punch-list items and paperwork finished, and it is released at the end if the conditions in the contract are met.
What is a typical retainage percentage?
Contracts commonly set 5% or 10%. The rate is whatever your contract says, within any limit set by state law or the public agency for public work.
How do I calculate retainage on a pay application?
Multiply the work completed to date by the retainage percentage. Subtract that from the work completed to get the amount earned less retainage, then subtract previous payments to get the amount due on this application.
Can I file a lien for unpaid retainage?
Generally retainage is part of the unpaid contract balance, so lien and bond-claim rights can cover it, but the deadlines still run from your last furnishing date, not from the date retainage was due. Some states add a separate notice for retainage claims. Check your state before the window closes.