Contractor Retainage Cash Gap Calculator

Understand how retainage and progress billing impact your project cash flow. Enter the contract value and retainage percentage to see how much cash remains locked up, how large the working capital gap becomes before final payment, and the size of the last payout needed to finish the job.

Total contract sum for the project.
Percentage withheld from progress draws.
Defaults to 70%. Represents how much of the job is billed before final payment.
Defaults to $0. Include allowances or upfront material deposits paid outside retainage.

Check contract language for retainage release triggers, lien waivers, and statutory caps before relying on the estimate.

Examples

  • $450,000 contract, 10% retainage, 65% billed, $25,000 deposit ⇒ Retainage withheld to date: $29,250.00 • Cash collected before retainage release: $288,250.00 • Working capital gap before final payment: $161,750.00 • Final payout required (retainage + remaining contract): $202,500.00 • Contract funded so far: 64.06%
  • $320,000 contract, 8% retainage, 75% billed, no deposits ⇒ Retainage withheld to date: $19,200.00 • Cash collected before retainage release: $220,800.00 • Working capital gap before final payment: $99,200.00 • Final payout required (retainage + remaining contract): $153,600.00 • Contract funded so far: 69.00%

FAQ

How do I include change orders?

Add the value of executed change orders to the contract amount before running the calculation so retainage scales accordingly.

What if retainage drops mid-project?

Adjust the progress billing percentage to the point when retainage is reduced and rerun the calculator to see the new cash gap.

Can I model partial retainage releases?

Yes. Replace the retainage percentage with the effective rate after the partial release, or run multiple scenarios to reflect staged reductions.

Does this account for subcontractor retainage?

No. Add subcontractor retainage back into the contract total if you need to reflect cascading cash holds in your working capital plan.

Additional Information

  • Progress billing percentage reflects cumulative work approved before final retainage release.
  • Deposits reduce the cash gap because they are not subject to retainage.
  • The final payout combines unreleased retainage and the unbilled portion of the contract.

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