How Much Is 10% Retainage on a $400,000 Contract?
Retainage held at 10%
$40,000.00
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 amount400000 $
- Retainage10 %
- Work completed to date100 %
- Already paid to you0 $
Payable on this application$360,000.00
| Contract amount | $400,000.00 |
|---|---|
| Work completed | 100% |
| Earned to date | $400,000.00 |
| Retainage held at 10% | $40,000.00 |
| Less already paid | $0.00 |
| Due on this application | $360,000.00 |
| Retainage held at completion | $40,000.00chase 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% | $90,000.00 | $10,000.00 | $90,000.00 |
| 50% | $180,000.00 | $20,000.00 | $180,000.00 |
| 75% | $270,000.00 | $30,000.00 | $270,000.00 |
| 100% | $360,000.00 | $40,000.00 | $360,000.00 |
What else matters here
Ten percent of $400,000 is $40,000 held and $360,000 paid through the progress applications.
Put retainage in its own account in the books rather than lumping it into accounts receivable. Retainage receivable behaves differently from an ordinary invoice: it is not late, nobody is refusing it, and it is not collectable yet, because the event that makes it due has not happened.
Mixing the two ruins the only report that tells you how collection is going. An aging summary with $40,000 of retainage sitting in the 90 day column says the customer is not paying, when in fact the contract says they do not have to yet. Separated out, the receivable aging becomes an honest picture of who is slow, and retainage receivable becomes its own list with release conditions and expected dates against each line. Your accountant will also want it separate, because the tax treatment of retainage is not always the same as an ordinary receivable.
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 $400,000 contract?
$40,000 held and $360,000 payable across the job, with the $40,000 released at closeout.
Should retainage be a separate account in my books?
Yes. Retainage receivable is not overdue and is not yet collectable, so leaving it inside accounts receivable distorts the aging report.
Why does it matter for reporting?
An aging summary with retainage in the 90 day column makes good customers look delinquent. Separated, receivable aging shows who is genuinely slow and retainage gets its own list of release conditions.
The retainage calculator takes any dimensions you like and hands back the same list.