Retention Release Schedule Calculator

Work out retention release schedule instantly with clear inputs, formula shown and shareable results.

About Retention Release Schedule Calculator

Retention is deducted from each payment at a stated rate until a cumulative cap is reached, then released in two stages: part at practical completion and the balance at the end of the defects liability period. The second tranche is the buyer's remaining leverage on defects.

Formulas

Total retention

Retention = min(Contract value x Rate %, Contract value x Cap %)

Release stages

First release at practical completion; balance after the defects liability period

Worked example

With the default values below, Retention Release Schedule Calculator returns Total retention held of $900,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Contract value: 36,000,000
Retention rate: 5
Cap on cumulative retention: 2.5
Share released at practical completion: 50

Results

Total retention held: $900,000.00
Released at practical completion: $450,000.00
Released after the defects period: $450,000.00
Cap status: Cap applies

Step by step

1Values used
2Total retention
3Release stages
4Total retention held= 900,000.00
5Released at practical completion= 450,000.00
6Released after the defects period= 450,000.00
7Cap status= Cap applies

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 2 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 is retention capped?

Because uncapped retention on a large contract would tie up a disproportionate amount of contractor cash and raise the bid price.

Can retention be replaced by a bond?

Yes, and many contractors prefer it. A retention bond releases the cash while preserving the buyer's security.