ContractorHandbook

How Much Is 10% Retainage on a $150,000 Contract?

Retainage held at 10%

$15,000.00

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 amount150000 $
  • Retainage10 %
  • Work completed to date100 %
  • Already paid to you0 $

Payable on this application$135,000.00

Contract amount$150,000.00
Work completed100%
Earned to date$150,000.00
Retainage held at 10%$15,000.00
Less already paid$0.00
Due on this application$135,000.00
Retainage held at completion$15,000.00chase 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%$33,750.00$3,750.00$33,750.00
50%$67,500.00$7,500.00$67,500.00
75%$101,250.00$11,250.00$101,250.00
100%$135,000.00$15,000.00$135,000.00

What else matters here

A $150,000 contract at 10 percent leaves $15,000 held and $135,000 paid through the progress applications.

Fifteen thousand dollars of your own money, out for however long closeout takes, has a cost even when it eventually arrives. If closeout runs six months, that money cost you roughly what six months of interest on a credit line costs, and nobody put that on the estimate.

This is a good size at which to negotiate a reduction. Asking for retainage to drop from 10 to 5 percent at substantial completion is normal, and it is a far easier conversation at signing than at the end.

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 $150,000 contract?

$15,000 held by completion, with $135,000 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.

Is retainage the same as a deposit?

No. A deposit is money paid before work. Retainage is money you have already earned and already put labor and material into, held back until the job closes out. It is not a discount, it is not a contingency, and it is not the customer's money.

Different numbers?

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

Other common sizes