Holdback math
Construction retainage calculator
Plug in the contract, billed-to-date, and the rate in the subcontract. Turn on step-down if the job cuts from 10% to 5% after half billed.
Need the line-by-line sheet? Open the G702-style pay app. Check Florida, Texas, or your state’s retainage cap, or read how to bill retainage.
Questions this page answers
- How is retainage calculated?
- Multiply completed and stored-to-date work by the contract retainage rate. Earned less retainage is that total minus the amount held. What should have been paid is earned less retainage minus prior payments.
- How do I calculate retainage in construction?
- Use the rate in the subcontract, then confirm it is not above the state cap. Many jobs step down from 10% to 5% after 50% complete — turn that on in the calculator.
- What is 10% retainage?
- Ten percent of billed work is held until closeout. On a $500,000 contract that is $50,000 sitting with the owner. Some states cap public or private retainage below 10%.