Advance Payment Recovery Calculator

Work out advance payment recovery instantly with clear inputs, formula shown and shareable results.

About Advance Payment Recovery Calculator

An advance payment is recovered by deducting a percentage from interim payments across a defined progress window, typically starting at 20% and completing before final payment. The recovery rate must be high enough to clear the advance before the contract ends.

Formulas

Advance amount

Advance = Contract value x Advance %

Recovery rate

Recovery rate = Advance % / (Recovery end % - Recovery start %) x 100

Worked example

With the default values below, Advance Payment Recovery Calculator returns Advance payment amount of $7,200,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Contract value: 48,000,000
Advance payment: 15
Progress at which recovery starts: 20
Progress at which recovery completes: 90

Results

Advance payment amount: $7,200,000.00
Recovery rate applied to each payment: 21.429%
Progress window over which recovery occurs: 70.0%
Deduction per ten percent of progress: $1,028,571.43

Step by step

1Values used
2Advance amount
3Recovery rate
4Advance payment amount= 7,200,000.00
5Recovery rate applied to each payment= 21.429
6Progress window over which recovery occurs= 70.0
7Deduction per ten percent of progress= 1,028,571.43

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

Why start recovery after some progress?

To let the contractor use the advance for mobilisation, materials and early works, which is the reason for granting it.

Must the advance be secured?

Almost always, by an advance payment guarantee for the full unrecovered amount, reducing as recovery proceeds.