Retainage Calculator

Calculate retainage step by step: Earned = contract × % complete.

In short

Formula: Earned = contract × % complete. Retainage = earned × rate. Due = earned − retainage − previous payments.

Complete the required fields to see the result.

What this calculator does

Calculate retainage step by step: Earned = contract × % complete. Worked example, questions and limitations included.

Use it to turn Currency, Contract value, Work completed to date, Retainage rate, and the other shown inputs into a checked result you can compare, copy, or rerun with different assumptions.

The page shows the formula, a numeric worked example, and the assumptions that affect this construction calculation.

Inputs and what they mean

Currency: — choice value.
Contract value: — number value.
Work completed to date: — number value.
Retainage rate: — number value.
Previous payments made: — number value.

How to use it

Enter each value in the unit shown next to the box (use the unit converter first if your numbers are in other units).
Check the breakdown to see every intermediate step.
Read the limitations before relying on the result.

Formula

Retainage is released on completion per the contract.

Rate is entered — laws and contracts set different limits.

A negative result means overpayment to date.

Earned = contract × % complete. Retainage = earned × rate. Due = earned − retainage − previous payments.

Inputs used: Currency, Contract value, Work completed to date, Retainage rate, Previous payments made.

Worked example

Contract 500,000, 40% complete

Earned = 200,000.
Retainage = 20,000.
Due = 200,000 − 20,000 − 90,000 = 90,000.

Reading the result

The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.

Reference price tables

No reference prices are configured. Enter your own prices and rates — this site never assumes them.

Limitations and assumptions

Single retainage rate.
No stored materials or change orders unless included in contract value.
Local law may change the rules.
Results are estimates for planning and learning. Real designs, installations and bids must be checked by a qualified, licensed professional against the codes that apply where you work.
The result depends on the values you enter for this retainage calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

Common questions

What is retainage?

A percentage of each progress payment the owner holds back until the work is complete, as security for defects and completion. Check the formula, example, and limitations on this page before using the result for a real construction decision.

Is there a legal limit?

Many jurisdictions cap retainage or require release after substantial completion. Check local law and your contract.

Can retainage reduce over time?

Some contracts reduce the rate after a milestone, such as 50% completion. Run the calculator with the new rate for later periods.

How do I use the Retainage Calculator?

Enter the required values for Currency, Contract value, Work completed to date, Retainage rate, Previous payments made. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

What formula does the Retainage Calculator use?

Earned = contract × % complete. Retainage = earned × rate. Due = earned − retainage − previous payments. The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.

Can the Retainage Calculator be used for exact decisions?

Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.