How Much Is 10% Retainage on a $200,000 Contract?
Retainage held at 10%
$20,000.00
10% retainage, shown at 100% completion so the figure is the full amount held by the end of the job.
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 amount200000 $
- Retainage10 %
- Work completed to date100 %
- Already paid to you0 $
Payable on this application$180,000.00
| Contract amount | $200,000.00 |
|---|---|
| Work completed | 100% |
| Earned to date | $200,000.00 |
| Retainage held at 10% | $20,000.00 |
| Less already paid | $0.00 |
| Due on this application | $180,000.00 |
| Retainage held at completion | $20,000.00chase 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 completed | Payable on this application | Retainage held at 10% | Due on this application |
|---|---|---|---|
| 25% | $45,000.00 | $5,000.00 | $45,000.00 |
| 50% | $90,000.00 | $10,000.00 | $90,000.00 |
| 75% | $135,000.00 | $15,000.00 | $135,000.00 |
| 100% | $180,000.00 | $20,000.00 | $180,000.00 |
What else matters here
Ten percent of $200,000 is $20,000 held and $180,000 paid. At 5 percent the holdback halves to $10,000.
Substantial completion and final completion are two different events and the contract should name both, because they are usually months apart. Substantial completion is when the owner can use the work for its intended purpose, which is often when occupancy is granted. Final completion is when every last item is finished and every document has been handed over.
The release worth negotiating is a partial one at substantial completion. A common arrangement leaves behind an amount equal to some multiple of the value of the outstanding punch list work, commonly one and a half or two times, and releases the rest. That is a fair trade for both sides: the owner keeps security proportional to what is actually unfinished, and you are not financing $20,000 because $3,000 of work is open.
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 $200,000 contract?
$20,000 held and $180,000 payable. At 5 percent the holdback is $10,000.
What is the difference between substantial and final completion?
Substantial completion is when the owner can use the work for its intended purpose. Final completion is when every remaining item is finished and every document delivered.
Can retainage be partly released early?
Often, at substantial completion. A common arrangement holds one and a half to two times the value of the remaining punch list work and releases the balance.
The retainage calculator takes any dimensions you like and hands back the same list.