Free contractor tools
Retainage Calculator
Work out how much is being withheld on a construction job — and what you're actually getting paid this period.
Retainage withheld to date
$2,500
What is retainage?
Retainage (also called retention) is a portion of each progress payment — most commonly 5% to 10% — that the owner or general contractor holds back until the job is finished and accepted. It's leverage to make sure the work gets completed and any punch-list items get fixed before the last dollar changes hands.
How do you calculate retainage?
Retainage is the amount you've earned multiplied by the retainage rate:
retainage withheld = work earned to date × retainage rate
On a $50,000 contract that's 50% complete with 10% retainage, you've earned $25,000, the owner withholds $2,500, and your net payment this period is $22,500. By the time the job is 100% complete, $5,000 (10% of the full contract) will have been held back — released at closeout once the work is accepted.
When do you get retainage back?
Retainage is released after substantial completion — typically once the punch list is cleared, final lien waivers are exchanged, and the owner signs off. On longer jobs it may be reduced partway through (for example, dropped from 10% to 5% at 50% completion). Always check the contract for the exact release conditions and your state's prompt-payment and retainage laws.
How Simple Contractor CRM handles retainage
In SCC, retainage is first-class: it's held and released automatically as you bill each progress draw, so the amount owed, the amount retained, and the final release are derived from the work — never hand-keyed into a spreadsheet. It's the part most simple tools skip and enterprise tools lock behind their top tier.
Frequently asked
- What is a typical retainage percentage?
- 5% to 10% is the most common range on construction contracts. Some contracts step it down (e.g., 10% until 50% complete, then 5%), and several states cap the maximum retainage allowed on public or private work.
- Is retainage the same as retention?
- Yes — 'retainage' and 'retention' are two names for the same thing: money withheld from progress payments until the job is complete and accepted.
- Can I withhold retainage from my subcontractors?
- Usually yes, if your subcontract allows it — many GCs pass the same retainage rate down to subs. Check your subcontract and your state's retainage statute, which sometimes limits sub retainage.
- Does retainage apply to stored materials?
- It depends on the contract. Some owners apply retainage to stored or pre-purchased materials billed on the schedule of values; others bill materials without retainage. Confirm before you submit the pay application.
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