Free tool
Progress Payment Calculator
A progress payment is what you bill for the work completed in a single period, not the whole job. Getting it right means starting from the revised contract, adding what is genuinely earned, subtracting what is being withheld, and then subtracting everything already paid. Change the numbers below and the figure updates as you type.
Current payment due
$92,500.00
- Revised contract
- $525,000.00
- Earned work
- $315,000.00
- Stored materials
- $10,000.00
- Gross earned
- $325,000.00
- Retainage withheld
- $32,500.00
- Previous payments
- $200,000.00
- Remaining contract
- $210,000.00
How the calculation works
- Revised contract
- Original contract + Approved change orders
- Earned work
- Revised contract × Work completed %
- Gross earned
- Earned work + Stored materials + Additional charges − Credits
- Retainage
- Gross earned × Retainage %
- Current payment
- Gross earned − Retainage − Previous payments
- Can be negative if you have been overpaid.
- Remaining contract
- Revised contract − Earned work
- Earned work, not gross earned — stored materials are not completed work.
Worked example
- Original contract
- $500,000.00
- Approved change orders
- $25,000.00
- Revised contract
- $525,000.00
- Work completed
- 60%
- Earned work
- $315,000.00
- Stored materials
- $10,000.00
- Gross earned
- $325,000.00
- Retainage at 10%
- $32,500.00
- Previous payments
- $200,000.00
- Current payment due
- $92,500.00
- Remaining contract
- $210,000.00
Remaining contract is $210,000 because $315,000 of the $525,000 revised contract has been performed. The $10,000 of stored materials is billable but is not completed work, so it does not reduce the scope still to be built.
How to use it
- 01Enter the original contract value, then add every change order the owner has actually approved. Pending change orders do not belong here.
- 02Set work completed as a percentage of the revised contract, not the original. This is the number most often taken from the wrong base.
- 03Add stored materials only if your contract allows billing for materials delivered but not yet installed, and only for what is on site this period.
- 04Enter previous payments as the total received to date, not the last payment alone.
- 05Read the current payment due figure. If it is negative, you have billed ahead of the work.
Common mistakes
Applying percent complete to the original contract
Once a change order is approved it becomes part of the contract you are billing against. Using the original amount understates every subsequent application, and the gap compounds as more change orders land.
Retaining on stored materials without checking the contract
Some contracts hold retainage on stored materials, some do not, and a few hold it at a different rate. The calculator applies your rate to the full gross earned amount; if your contract treats materials differently, bill them on a separate line.
Treating stored materials as progress
Materials on site are billable but nothing has been built with them yet. Folding them into percent complete overstates progress and creates an argument at closeout.
Forgetting that previous payments are cumulative
Progress billing is always to-date minus paid-to-date. Entering only the most recent payment produces a current payment far larger than you are owed.
Questions
What is a progress payment in construction?
A payment for work completed during a specific billing period, usually monthly. Rather than paying once at completion, the owner pays as the work is performed, less any retainage held under the contract.
How do I calculate a progress payment?
Take the revised contract (original plus approved change orders), multiply by percent complete to get earned work, add stored materials and any additional charges, subtract credits, then subtract retainage and everything already paid.
Is retainage calculated before or after previous payments?
Before. Retainage is withheld against the cumulative gross earned amount, and only then are previous payments deducted. Applying it after previous payments understates the withholding.
Can a progress payment be negative?
Yes. If previous payments exceed gross earned less retainage, you have been overpaid for the work in place. The period bills nothing and the difference is typically carried forward or returned.
Do I need an account to use this calculator?
No. The calculator runs entirely in your browser and nothing is sent anywhere. An account only becomes useful when you want to save calculations across projects.
Related tools
Retainage Calculator
See the cash gap the withheld amount creates across the job.