How Much Is 10% Retainage on a $500,000 Contract?
Retainage held at 10%
$50,000.00
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 amount500000 $
- Retainage10 %
- Work completed to date100 %
- Already paid to you0 $
Payable on this application$450,000.00
| Contract amount | $500,000.00 |
|---|---|
| Work completed | 100% |
| Earned to date | $500,000.00 |
| Retainage held at 10% | $50,000.00 |
| Less already paid | $0.00 |
| Due on this application | $450,000.00 |
| Retainage held at completion | $50,000.00chase 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% | $112,500.00 | $12,500.00 | $112,500.00 |
| 50% | $225,000.00 | $25,000.00 | $225,000.00 |
| 75% | $337,500.00 | $37,500.00 | $337,500.00 |
| 100% | $450,000.00 | $50,000.00 | $450,000.00 |
What else matters here
Half a million at 10 percent means $50,000 held and $450,000 paid across the job.
Fifty thousand dollars is a serious working capital commitment, and on contracts this size the retainage percentage is genuinely negotiable. A reduction to 5 percent after 50 percent completion is a common term and it halves the exposure for the second half of the job, which is when the number is biggest.
On public work in most states there is a cap and often a statutory release timeline. Find out which applies before accepting the owner's standard form, because the form will state the number the owner prefers rather than the number the law allows.
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 $500,000 contract?
$50,000 held by completion, with $450,000 paid across the progress applications.
Is there a limit on how much retainage can be held?
On public work, usually yes. Most states cap retainage on public projects, commonly at 5 or 10 percent, and several require it to be released or reduced at substantial completion. Private contracts are freer and are often worse.
Is retainage the same as a deposit?
No. A deposit is money paid before work. Retainage is money you have already earned and already put labor and material into, held back until the job closes out. It is not a discount, it is not a contingency, and it is not the customer's money.
The retainage calculator takes any dimensions you like and hands back the same list.