How Much Is 10% Retainage on a $40,000 Contract?
Retainage held at 10%
$4,000.00
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 amount40000 $
- Retainage10 %
- Work completed to date100 %
- Already paid to you0 $
Payable on this application$36,000.00
| Contract amount | $40,000.00 |
|---|---|
| Work completed | 100% |
| Earned to date | $40,000.00 |
| Retainage held at 10% | $4,000.00 |
| Less already paid | $0.00 |
| Due on this application | $36,000.00 |
| Retainage held at completion | $4,000.00chase 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% | $9,000.00 | $1,000.00 | $9,000.00 |
| 50% | $18,000.00 | $2,000.00 | $18,000.00 |
| 75% | $27,000.00 | $3,000.00 | $27,000.00 |
| 100% | $36,000.00 | $4,000.00 | $36,000.00 |
What else matters here
A $40,000 contract at 10 percent holds $4,000 and pays $36,000. At 75 percent complete, $3,000 is already held.
Retainage that never appears on paper is retainage that gets forgotten, so bill for it explicitly. Every application should show the amount earned to date, the amount retained to date, and what is payable now. The final application should carry a separate line that names the accumulated retainage and asks for its release.
That is not a formality. The person who releases the money is usually in an office rather than on the site, and they pay what the paperwork asks for. An application that quietly totals to zero because everything has been billed leaves the holdback sitting in a column nobody is looking at, and it will stay there until somebody sends a document asking for it.
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 $40,000 contract?
$4,000 held and $36,000 payable, with $3,000 already held at 75 percent complete.
How do I invoice for retainage?
Show earned to date, retained to date and payable now on every application, then put the accumulated retainage on the final application as its own line requesting release.
Why does retainage get forgotten?
Because the person paying works from the paperwork. If no document asks for the holdback, nothing prompts anyone in the office to release it.
The retainage calculator takes any dimensions you like and hands back the same list.