ContractorHandbook

How Much Is 10% Retainage on a $100,000 Contract?

Retainage held at 10%

$10,000.00

10% retainage, shown at 100% completion so the figure is the full amount held by the end of the job.

Contractwork completedstill to doThis drawalready paidretainage heldearned to date, less retainage, less what has already been paid
Retainage is money you have earned and cannot invoice yet, and it stacks up quietly across a job. The page works out what is payable on this application and what is still sitting behind the retainage line at completion.

How that number is worked out

These are the figures this page was built with and every line the calculator produces from them. Change anything above and all of it moves.

  • Contract amount100000 $
  • Retainage10 %
  • Work completed to date100 %
  • Already paid to you0 $

Payable on this application$90,000.00

Contract amount$100,000.00
Work completed100%
Earned to date$100,000.00
Retainage held at 10%$10,000.00
Less already paid$0.00
Due on this application$90,000.00
Retainage held at completion$10,000.00chase this at closeout

Work completed compared

Retainage accumulates as the work does, so each progress application leaves a little more of your own money behind.

Work completedPayable on this applicationRetainage held at 10%Due on this application
25%$22,500.00$2,500.00$22,500.00
50%$45,000.00$5,000.00$45,000.00
75%$67,500.00$7,500.00$67,500.00
100%$90,000.00$10,000.00$90,000.00

What else matters here

Ten percent of $100,000 is $10,000 held, $90,000 paid. It is the cleanest example of the arithmetic and the one most people are looking for.

Ten thousand dollars is also roughly what a $100,000 contract earns at ordinary residential overhead and profit. Read those two sentences together and the shape of the problem is obvious: the money being held is the money the business was working for.

Retainage is released at closeout, and closeout means whatever the contract says it means. If it says substantial completion, get substantial completion defined. If it says final inspection and a punch list, find out who decides when the punch list is finished.

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.

Questions people ask

How much is 10 percent retainage on a $100,000 contract?

$10,000 held by completion, with $90,000 paid across the progress applications.

Is there a limit on how much retainage can be held?

On public work, usually yes. Most states cap retainage on public projects, commonly at 5 or 10 percent, and several require it to be released or reduced at substantial completion. Private contracts are freer and are often worse.

Why does retainage get forgotten?

Because it is the last money on a job and the job is finished by the time it comes due. Track the retainage balance separately from the invoice balance, put the release condition in the contract in plain words, and diary the date. Money nobody is watching does not arrive on its own.

Different numbers?

The retainage calculator takes any dimensions you like and hands back the same list.

Other common sizes