How Much Is 10% Retainage on a $25,000 Contract?
Retainage held at 10%
$2,500.00
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 amount25000 $
- Retainage10 %
- Work completed to date100 %
- Already paid to you0 $
Payable on this application$22,500.00
| Contract amount | $25,000.00 |
|---|---|
| Work completed | 100% |
| Earned to date | $25,000.00 |
| Retainage held at 10% | $2,500.00 |
| Less already paid | $0.00 |
| Due on this application | $22,500.00 |
| Retainage held at completion | $2,500.00chase 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% | $5,625.00 | $625.00 | $5,625.00 |
| 50% | $11,250.00 | $1,250.00 | $11,250.00 |
| 75% | $16,875.00 | $1,875.00 | $16,875.00 |
| 100% | $22,500.00 | $2,500.00 | $22,500.00 |
What else matters here
A $25,000 contract at 10 percent holds $2,500 and pays $22,500. At 5 percent it would be $1,250 held and $23,750 paid.
Retainage and warranty are two different protections and they are constantly confused. Retainage secures completion: it exists to make sure the work gets finished and the punch list gets done. The warranty secures performance afterwards: it exists to make sure that what was finished keeps working for the period the contract names.
So a customer who wants to keep money back in case something goes wrong next year is asking retainage to do the warranty's job, and the answer is not a longer holdback. It is a written warranty with a term, a clear statement of what it covers, and a phone number that gets answered. That costs you nothing while this money is in your account rather than theirs.
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 $25,000 contract?
$2,500 held and $22,500 payable. At 5 percent it would be $1,250 held and $23,750 paid.
Is retainage the same as a warranty?
No. Retainage secures completion of the work, a warranty secures performance after completion. They are separate protections with separate mechanisms.
What if the customer wants to hold money for future problems?
That is what the warranty is for. Offer a written warranty with a stated term and coverage rather than agreeing to a longer holdback.
The retainage calculator takes any dimensions you like and hands back the same list.