Retainage calculator

Retainage (retention) is the share of each payment the owner holds back until the job is substantially complete. This tool follows the AIA G702 Application and Certificate for Payment.

Completed & stored  = work completed + stored materials
Retainage held      = work completed × rate + stored × stored rate
Earned less ret.    = completed & stored − retainage held      (line 6)
Payment due         = line 6 − previous certificates           (line 8)
Balance to finish   = contract sum − line 6                    (line 9)

Retainage reduction

Many contracts drop retainage from 10% to 5% once the job is 50% complete. There are two common ways to do it:

• Work above the milestone only: the first 50% of the contract stays at 10%, everything after is held at 5%. Retainage held = contract × 50% × 10% + (completed − contract × 50%) × 5%.
• All completed work: the owner releases retainage down to 5% of everything completed. Retainage held = completed × 5%. This usually comes with a release of the excess on the next pay app.

Public work often caps retainage by statute, and some states require release within a set period after substantial completion. Treat this as a calculator, not legal advice.

What "payment due" doesn't include

Line 8 is what's certified, not what lands in the bank. Owners can still hold for missing lien waivers, disputed items or back charges.