Retainage Release Calculator

Retainage protects the owner from incomplete work — a percentage of every contractor draw is withheld until completion. Typical schedules reduce retainage past 50% complete and release most at substantial completion. This calculator runs the schedule at any completion stage.

Contract value

Retainage %

Current completion %

Partial release % at substantial completion

Retainage reduces at % complete

Reduced retainage %

Current retainage held back

$212,500

Available to release at sub-completion

Final retainage held to punch-list

$212,500

Retainage from earned value

$212,500

Earned contract value

$4,250,000

How the math works

Retainage is contract value withheld until completion. Typical: 10% of each draw. Once completion exceeds 50%, many contracts reduce retainage to 5% going forward. At substantial completion, 50% of retainage is released; final retainage held until all punch-list items signed off.

Many state codes require retainage to be placed in an escrow account accruing interest for the contractor. Check state-specific mechanics liens law before drafting retainage language.

How to Use

Enter contract value and retainage percentage.
Enter current completion percentage.
Enter partial release percent at substantial completion.
Enter reduction threshold and reduced retainage percentage.
Read current held-back amount and release profile.

Frequently Asked Questions

Why reduce past 50%?

Keeps contractor cash-flowed through the second half of the job. Full 10% retainage held to completion cripples smaller subcontractors. Most contracts reduce to 5% past 50%.

Release at substantial vs final?

Substantial completion (property usable but punch list remaining): 50% of retainage released. Final completion (punch-list signed off, lien waivers in): remaining 50% released.

State law variation?

Many states (CA, TX, FL) have specific retainage statutes. Some cap retainage at 5% by law. Some require retainage in an escrow account. Always check state-specific lien law before drafting.