How Much Is 10% Retainage on a $75,000 Contract?
Retainage held at 10%
$7,500.00
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 amount75000 $
- Retainage10 %
- Work completed to date100 %
- Already paid to you0 $
Payable on this application$67,500.00
| Contract amount | $75,000.00 |
|---|---|
| Work completed | 100% |
| Earned to date | $75,000.00 |
| Retainage held at 10% | $7,500.00 |
| Less already paid | $0.00 |
| Due on this application | $67,500.00 |
| Retainage held at completion | $7,500.00chase 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% | $16,875.00 | $1,875.00 | $16,875.00 |
| 50% | $33,750.00 | $3,750.00 | $33,750.00 |
| 75% | $50,625.00 | $5,625.00 | $50,625.00 |
| 100% | $67,500.00 | $7,500.00 | $67,500.00 |
What else matters here
A $75,000 contract at 10 percent holds $7,500 and pays $67,500. At 5 percent the holdback is $3,750.
If the holdback cannot be negotiated away, it should be priced. Money held for six months is money borrowed for six months, and whether it comes from a line of credit or from your own reserves it has a cost that belongs in the bid rather than in your profit.
The arithmetic is uncomplicated and worth doing once for your own terms, then applying to every contract that carries retainage. Take the amount that will be held, multiply by your cost of money, multiply by the months you expect it to be out, and put the result in the estimate as part of the general conditions. A customer who prefers a lower number then has a straightforward alternative available to them, which is to hold less.
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 $75,000 contract?
$7,500 held and $67,500 payable. At 5 percent the holdback is $3,750.
Should I price retainage into a bid?
Yes, where it cannot be negotiated down. Money held for months is money borrowed for months, and that cost belongs in the estimate rather than in your profit.
How do I calculate the cost of retainage?
Amount held, times your cost of money, times the months you expect it to be out. Put the result in general conditions and the customer can choose to hold less instead.
The retainage calculator takes any dimensions you like and hands back the same list.