Construction Retainage Calculator (Pay Application)
Retainage is the share of each progress payment the owner holds back until completion. Enter the contract, progress and retainage rate to check a pay application before you send it.
Work completed to date
$200,000
Retainage held
$20,000
Earned less retainage
$180,000
Amount due this period
$90,000
How it is calculated
- Work completed to date = contract value (including approved change orders) × percent complete.
- Retainage held = work completed to date × retainage rate.
- Earned less retainage = work completed − retainage held.
- Amount due this period = earned less retainage − previous payments received.
FAQ
What is retainage in construction?
An amount, usually a percentage of each progress payment, that the owner withholds until the work is substantially complete, as security for completion and corrections.
What is a typical retainage rate?
Rates are set by the contract and by state law, and vary by project type and jurisdiction. Check your contract and your state prompt-payment and retainage statutes.
Do change orders affect retainage?
Yes. Approved change orders increase the contract value, and retainage is usually withheld on the work billed under them too, unless the contract says otherwise.
How is retainage released?
Typically at substantial or final completion, after punch-list items, lien waivers and closeout documents are delivered, according to the contract terms.