Retainage calculator: figure retainage line by line

Retainage is the share of each payment a general contractor holds back until the job is done, often 5% or 10%. On a pay app it is figured on each line's work completed and stored to date, rounded to the cent, and the pay app's retainage is the sum of those lines.

Fabric, built in Seattle Updated October 12, 2026

Retainage calculator

Retainage

Description	Scheduled Value	Completed to Date	Materials Stored	Total Completed	Retainage	Earned less retainage
Line 1 description	Line 1 scheduled value	Line 1 completed to date	Line 1 materials stored	Total completed73,600.00	Retainage3,680.00	Earned less retainage69,920.00
Line 2 description	Line 2 scheduled value	Line 2 completed to date	Line 2 materials stored	Total completed73,600.00	Retainage3,680.00	Earned less retainage69,920.00
Line 3 description	Line 3 scheduled value	Line 3 completed to date	Line 3 materials stored	Total completed21,750.00	Retainage1,087.50	Earned less retainage20,662.50
Line 4 description	Line 4 scheduled value	Line 4 completed to date	Line 4 materials stored	Total completed38,642.50	Retainage1,932.13	Earned less retainage36,710.37
Line 5 description	Line 5 scheduled value	Line 5 completed to date	Line 5 materials stored	Total completed9,120.00	Retainage456.00	Earned less retainage8,664.00
Line 6 description	Line 6 scheduled value	Line 6 completed to date	Line 6 materials stored	Total completed48,900.00	Retainage2,445.00	Earned less retainage46,455.00
Line 7 description	Line 7 scheduled value	Line 7 completed to date	Line 7 materials stored	Total completed6,850.00	Retainage342.50	Earned less retainage6,507.50

Total completed and stored: $272,462.50
Retainage, line by line: $13,623.13
Earned less retainage: $258,839.37

Figured once on the total instead: $13,623.13, the same as line by line.

What retainage is

Retainage is money the general contractor holds back from each payment until the work is finished. The subcontract sets the rate, often 5% or 10%, and the GC is often held to the same terms by the owner.

It protects the GC and the owner if work is left unfinished or has to be fixed. It is still your money: every pay app shows how much has been held so far, and you bill it at closeout. The sample job holds 5%.

Per line or on the total

GCs check retainage line by line, so figure it the same way: take each line's work completed and stored to date, multiply by the rate, and round to the cent on that line. The pay app's retainage is the sum of those rounded lines.

On the sample job, line 2.1 has $38,642.50 completed. 5% of that is $1,932.125, which rounds to $1,932.13. Adding up every line's rounded retainage gives $13,623.13 for pay app #3. The sample is a stairs and railings package; the math is the same in any trade.

On this job, taking 5% of the total gives the same figure. On a longer sheet the half cents can pile up: two lines like this one hold $3,864.26 line by line but $3,864.25 on the total, $0.01 apart. A few cents is enough for a GC to send back a pay app whose cover sheet doesn't match its continuation sheet.

Try it in the calculator above: add a line, enter $38,642.50 as both the Scheduled Value and Completed to Date, and watch the comparison under the totals.

Retainage on stored materials

Many subcontracts hold retainage on stored materials as well as installed work, and some hold it on installed work only. Follow yours. The calculator holds retainage on each line's work and stored materials together.

Reducing retainage partway through

Some subcontracts lower the rate once the job reaches a milestone, often 50% complete, for example from 10% to 5% on the rest of the work. It is a contract term, not automatic, and the GC has to agree before you bill at the lower rate. Check your contract before changing the rate on a pay app.

Releasing retainage at closeout

When the work is complete, you bill the retainage held on a retainage release pay app. When that happens depends on the contract: some release at substantial completion, some after the owner pays the GC in full.

GCs often ask for closeout items before they release it, such as warranties, operation and maintenance manuals, and final paperwork. Get the list early so the release isn't held up. On the sample job, $13,623.13 is held through pay app #3.

Contract terms and state rules

The subcontract sets the rate and the release terms. Some states cap retainage or set deadlines for releasing it, especially on public work, and the rules differ from state to state. Check your contract and your state's rules. This guide explains how retainage is figured; it isn't legal advice.