Retainage Calculator
Retainage is the portion of each construction progress payment — typically 5–10% — that the owner or GC withholds until the work is complete. This free calculator shows how much is being withheld on your job, what is payable to date, and whether your rate exceeds your state’s statutory cap.
Tip: every field takes math — type 125000+80000 or 3200*40 and we’ll do the arithmetic.
- Earned to date
- $150,000.00
- Retainage withheld to date
- $15,000.00
- Net payable to date
- $135,000.00
- Total retainage at completion
- $25,000.00
Federal (FAR) — public projects: No automatic retainage: CO may retain up to 10% of a progress payment ONLY if satisfactory progress not achieved; else pay in full (FAR 52.232-5(e))
Educational estimate only — retainage statutes change and contracts vary. Verify against your contract and current state law. This is not legal advice.
Retainage laws by state (2026)
Statutory caps on retainage for public and private construction projects. “No cap” means the state has no statute limiting the rate — your contract governs. Last reviewed 2026-08-14. Laws change; verify before relying on a row.
| Jurisdiction | Public cap | Public rule | Private cap | Citation |
|---|---|---|---|---|
| Federal (FAR) | 10% | No automatic retainage: CO may retain up to 10% of a progress payment ONLY if satisfactory progress not achieved; else pay in full | No cap | FAR 52.232-5(e) |
| Alabama | 5% | 5% cap on state public works; no further retainage after 50% completion; final payment within 35 days of completion/acceptance | 10% | Ala. Code § 39-2-12(c); § 8-29-3(i) |
| Alaska | No cap | No statutory cap; set by contract. Subs paid retainage within 8 working days of prime's final payment or 90 days after last work | No cap | AS §§ 36.90.210, 36.90.250 (public timing only) |
| Arizona | 10% | 10% cap; half of withheld retainage released at 50% completion (5% thereafter if satisfactory); release within 60 days of completion | No cap | A.R.S. § 34-221(C); § 32-1182(D) |
| Arkansas | 5% | 5% cap per progress payment; withholding may cease at 50% completion with satisfactory progress; release within 30 days of completion | No cap | Ark. Code Ann. § 22-9-604 |
| California | 5% | 5% cap per payment and of total price; exception if pre-bid 'substantially complex' finding; release within 60 days of completion | 5% | Cal. Pub. Cont. Code § 7201; Civ. Code §§ 8811–8812 |
| Colorado | 5% | 5% cap (entity must pay at least 95% of completed work value); final settlement within 60 days of completion and acceptance | 5% | C.R.S. § 24-91-103; § 38-46-103 |
| Connecticut | 7.5% | State projects 7.5%, reduced to 5% at 50% completion; municipal projects 5%; DOT projects 2.5% | 5% | Conn. Gen. Stat. § 49-41b; § 42-158k |
| Delaware | 5% | 5% cap; 60% of retainage releasable at completion; release within 60 days of completion, then max 150% of expected remaining costs | No cap | 29 Del. C. §§ 6516(3), 6962(d)(5) |
| District of Columbia | 10% | 10% withheld until completion and acceptance; Mayor may reduce at 50% completion (prime–District contracts only) | No cap | D.C. Code § 2-203.01 |
| Florida | 5% | 5% cap per progress payment (former 10/5 step-down eliminated); release within 30 days after substantial completion | No cap | Fla. Stat. §§ 255.078, 255.077; § 715.12 |
| Georgia | 10% | 10% per progress payment; no further retainage after 50% completion if progress satisfactory; release within 30 days of substantial completion | No cap | O.C.G.A. §§ 13-10-80; 13-11-5 |
| Hawaii | 5% | Max 5% of amount due; after 50% completion with satisfactory progress no additional sums withheld; bonded subs get same rate | No cap | Haw. Rev. Stat. §§ 103-32.1, 103-32.2 |
| Idaho | 5% | 5% cap on bonded public work; release within 30 days after acceptance of completed portions; GC remits to subs within 30 days | 5% | Idaho Code §§ 54-1926; 29-115 |
| Illinois | No cap | No general statutory cap on public projects; contract terms govern (separate prompt-pay timing for highway work) | 10% | 815 ILCS 603/20; 605 ILCS 5/4-103 |
| Indiana | 10% | Local >$200k: 6–10% until 50% complete, none after; state contracts: 6% to 50% or 3% to substantial completion; release in 61 days | No cap | Ind. Code §§ 36-1-12-14; 4-13.6-7-3 |
| Iowa | 5% | Max 5% of amount due; no step-down; release within 30 days of completion and final acceptance; early-release option at 95% complete | No cap | Iowa Code §§ 573.12–573.15A |
| Kansas | 10% | 5% default; up to 10% only if needed to ensure performance; release within 30 days after substantial completion (10% road/bridge cap) | 10% | K.S.A. 16-1904; 16-1804; 68-411 |
| Kentucky | 10% | 10% of undisputed payments until 50% complete, then max 5% of total contract; release within 30 days of substantial completion | 10% | Ky. Rev. Stat. § 371.410 |
| Louisiana | 10% | 10% on projects under $500k; 5% on projects $500k and over; may be withheld up to 45 days after formal completion and acceptance | No cap | La. R.S. 38:2248; 9:4815 |
| Maine | 5% | 5% withheld on state contracts; may be reduced upon substantial completion; released when work accepted by or for the State | No cap | 5 M.R.S. § 1746; 10 M.R.S. § 1116 |
| Maryland | 5% | Max 5% when 100% payment/performance security posted; release within 120 days of satisfactory completion; subs capped at same rate | 5% | Md. Code, State Fin. & Proc. § 17-110; Real Prop. § 9-304 |
| Massachusetts | 5% | Max 5% of each periodic payment; release within 65 days of substantial completion; ~1% may be held pending final completion | 5% | Mass. Gen. Laws ch. 30 § 39K; ch. 149 § 29F |
| Michigan | 10% | Max 10% until work 50% in place, then no further retainage if progress satisfactory; funds escrowed interest-bearing | No cap | Mich. Comp. Laws § 125.1563 |
| Minnesota | 5% | Max 5% of progress payments; agency may reduce/eliminate; release within 60 days of substantial completion (250% punch-list holdback allowed) | 5% | Minn. Stat. §§ 15.71–15.74; § 337.10 subd. 4 |
| Mississippi | 5% | 5% on state contracts (county 2.5–10% by size); contracts >$250k drop to 2.5% after 50% complete with half of held retainage returned | No cap | Miss. Code Ann. §§ 31-5-33, 31-5-15, 19-13-15 |
| Missouri | 5% | Max 5% (10% only if unbonded contract under $50k); release with final payment, may hold 150% of punch-list value | 10% | Mo. Rev. Stat. § 34.057; §§ 436.303, 436.324 |
| Montana | 5% | Max 5% if contractor performing per contract; final payment within 30 days of final acceptance; subs capped at rate withheld from GC | 5% | Mont. Code Ann. § 18-2-316; §§ 28-2-2107, 28-2-2110 |
| Nebraska | No cap | No statutory retainage cap for public projects; set by contract | 10% | Neb. Rev. Stat. § 45-1204 |
| Nevada | 5% | 5% withheld until 50% of work done; then max 2.5% on later payments and half of held retainage repaid; release ~30 days after occupancy | 5% | Nev. Rev. Stat. §§ 338.515, 338.555; §§ 624.609, 624.624 |
| New Hampshire | No cap | Retainage permitted but no statutory rate; state contracts >$500k may substitute securities for retained funds | No cap | N.H. Rev. Stat. Ann. § 21-I:20 |
| New Jersey | 2% | 2% cap on local/state contracts >$100k; drops to 1% at substantial completion; school boards up to 5% (2% w/ bond); release in 45 days | No cap | N.J.S.A. 40A:11-16.3; 27:7-34; 18A:18A-40.3 |
| New Mexico | Prohibited | Retainage prohibited (Retainage Act); narrow exception: up to 5% on road/highway projects under NMSA 67-3-48 | Prohibited | NMSA § 57-28-5; § 67-3-48 |
| New York | 5% | 5% cap (10% if no payment/performance bond); release ~30 days after approval; subs paid within 7 days | 5% | State Fin. Law § 139-f; Gen. Mun. Law § 106-b; Gen. Bus. Law § 756-c |
| North Carolina | 5% | 5% on projects ≥$100k until 50% complete, then no further retainage if work satisfactory; early-finish trades reduced to 0.5% | No cap | N.C. Gen. Stat. § 143-134.1 |
| North Dakota | 10% | 10% of each estimate until 50% complete, then no further retainage; 95% of retained funds released at 95% completion | 10% | N.D.C.C. §§ 40-22-37; 43-07-23 |
| Ohio | 8% | 8% of each payment until 50% complete, then no further retainage; escrow required; release ~30 days after acceptance | No cap | Ohio Rev. Code §§ 153.12, 153.13, 153.63 |
| Oklahoma | 5% | 5% cap on public payments; release within 21 days of substantial completion (less up to 150% of correction costs) | No cap | Okla. Stat. tit. 61, § 226 |
| Oregon | 5% | 5% cap; may reduce after 50% complete with surety approval; interest-bearing escrow required over $500k; 1.5%/mo late interest | 5% | ORS 279C.570; ORS 701.420 |
| Pennsylvania | 10% | 10% cap; at 50% completion half of retainage returned and max drops to 5%; DGS 6%/3%; highways 5% with none after 50% | No cap | 62 Pa.C.S. § 3921; 73 P.S. § 509 |
| Rhode Island | 5% | 5% cap on state/municipal works; release within 90 days of acceptance or 10%/yr interest; RIDOT exempt but still limited to 5% | 5% | R.I. Gen. Laws §§ 37-12-10; 37-12-10.1 |
| South Carolina | 3.5% | Max 3.5% of each progress payment; retainage on a completed division of work released within 10 days of certification | No cap | S.C. Code Ann. § 11-35-3030(4) |
| South Dakota | No cap | No cap: statute sets a MINIMUM sliding scale on county work (12% first $50k, 5% next $200k, 2.5% above); interest accrues 60 days after completion | No cap | S.D. Codified Laws § 7-25-10 |
| Tennessee | 5% | Max 5%; escrow in interest-bearing account required if contract ≥$500k; release within 90 days of (substantial) completion | 5% | Tenn. Code Ann. §§ 66-34-103, 66-34-104 |
| Texas | 10% | Max 10% if contract <$5M; max 5% if ≥$5M; interest-bearing account if retainage >5% | No cap | Tex. Gov't Code § 2252.032; Tex. Prop. Code §§ 53.101–53.105 |
| Utah | 5% | Max 5% of total construction price; release within 45 days of billing/final acceptance or certificate of occupancy | 5% | Utah Code Ann. § 13-8-5 |
| Vermont | No cap | No statutory cap; retained amounts due on final completion must be paid within 30 days after final acceptance | No cap | Vt. Stat. Ann. tit. 9, § 4005 |
| Virginia | 5% | Max 5% of each progress payment (contractor paid at least 95% of earned sum); release via prompt-pay rules | No cap | Va. Code Ann. §§ 2.2-4333, 2.2-4334 |
| Washington | 5% | Max 5% (10% allowed in lieu of bond on contracts ≤$150k); release within 60 days of completion (30 days for the 10% option) | 5% | RCW 60.28.011; RCW ch. 60.30 (SB 5528, 2023) |
| West Virginia | No cap | No retainage statute for public projects — amount, timing, and release are set entirely by contract | No cap | |
| Wisconsin | 5% | State projects: max 5% until 50% complete, then none if progress satisfactory (up to 10% if not); paid at substantial completion | No cap | Wis. Stat. § 16.855(19) |
| Wyoming | 5% | Max 5% on public works; after 50% completion with satisfactory progress, entity may release withheld amounts on written request | No cap | Wyo. Stat. Ann. §§ 16-6-702(b), 16-6-704 |
Billing AIA-style pay apps with retainage every month? The free pay application generator carries retainage line-by-line and rolls your schedule of values forward each period. Read more in What is retainage in construction?
Frequently asked questions
How is retainage calculated?
Retainage = work completed to date × the retainage rate in your contract. On a $250,000 contract that is 60% complete with 10% retainage, $150,000 has been earned and $15,000 is withheld, so $135,000 is payable to date. Retainage is typically withheld from every progress payment and released at substantial completion or final acceptance.
What is a typical retainage percentage?
5% to 10% is standard. Federal projects allow up to 10% only when the contracting officer finds satisfactory progress lacking (FAR 52.232-5). Many states cap public-project retainage at 5%, and a growing number cap private retainage too — check the table on this page.
When must retainage be released?
It depends on the contract and jurisdiction. Common triggers are substantial completion, final acceptance, or a statutory deadline after completion. Several states require retainage to step down (for example, reduce by half once the project passes 50% completion). Track release milestones — unreleased retainage is one of the most common ways subcontractors silently lose margin.
Does retainage apply to change orders?
Usually yes. Approved change orders increase the contract sum, and retainage is withheld on the revised total unless your contract says otherwise. Make sure your schedule of values and pay applications carry change orders through, or your retainage math will drift from the GC's.
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