How Much Is 10% Retainage on a $20,000 Contract?
Retainage held at 10%
$2,000.00
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 amount20000 $
- Retainage10 %
- Work completed to date100 %
- Already paid to you0 $
Payable on this application$18,000.00
| Contract amount | $20,000.00 |
|---|---|
| Work completed | 100% |
| Earned to date | $20,000.00 |
| Retainage held at 10% | $2,000.00 |
| Less already paid | $0.00 |
| Due on this application | $18,000.00 |
| Retainage held at completion | $2,000.00chase 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% | $4,500.00 | $500.00 | $4,500.00 |
| 50% | $9,000.00 | $1,000.00 | $9,000.00 |
| 75% | $13,500.00 | $1,500.00 | $13,500.00 |
| 100% | $18,000.00 | $2,000.00 | $18,000.00 |
What else matters here
Ten percent of $20,000 is $2,000 held and $18,000 paid through the progress applications.
It is worth knowing where that $2,000 actually sits. On public work several states require retainage to be deposited in escrow or in an interest bearing account, and in some of them the interest earned belongs to the contractor rather than to the owner. A few let the contractor substitute securities or a bond for the cash.
None of that happens automatically. Where the option exists it usually has to be requested, sometimes in writing at the start of the contract, and an owner is under no obligation to mention it. So the question to ask before signing a public contract is not only what the rate is but where the money is held and who earns on it while it sits there.
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 $20,000 contract?
$2,000 held and $18,000 payable across the job, with the $2,000 released at closeout.
Does retainage earn interest?
Sometimes. Several states require retainage on public work to be held in escrow or an interest bearing account, and in some the interest belongs to the contractor.
Do I have to ask for retainage to be held in escrow?
Usually yes, and sometimes in writing at the start of the contract. The option rarely applies by default and an owner has no duty to raise it.
The retainage calculator takes any dimensions you like and hands back the same list.