Construction business
Construction retention funding cost
Estimate simple carrying cost of entered withheld cash amounts over owner-supplied waiting periods.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
funding cost = sum(withheld cash × entered annual funding rate × assumed days / 365)
For residential or commercial company costing. Use supplied job records, measured labor and quoted total expenses. No material takeoff, shopping list, supplier sourcing, code interpretation, engineering design or legal entitlement is provided. Waiting periods and withheld amounts are supplied facts or assumptions. This does not determine lawful withholding, retainage caps, release dates, lien deadlines, interest owed or entitlement. Uses simple annual interest with a 365-day denominator, not a lender payoff quote.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Withheld cash tranches: Actual entered withholding, owner assumed release days and funding rate. Owner records or explicit assumption; no account connection or maintained rate tables required.
- Tranche description: Actual entered withholding, owner assumed release days and funding rate. Owner records or explicit assumption; no account connection or maintained rate tables required.
- Cash withheld in this tranche (selected currency): Actual entered withholding, owner assumed release days and funding rate. Owner records or explicit assumption; no account connection or maintained rate tables required.
- Assumed days this cash remains unavailable (days): Actual entered withholding, owner assumed release days and funding rate. Owner records or explicit assumption; no account connection or maintained rate tables required.
- Your annual simple funding-cost assumption (%): Actual entered withholding, owner assumed release days and funding rate. Owner records or explicit assumption; no account connection or maintained rate tables required.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Simple carrying cost of entered withheld cash is $197.26 for the illustrative inputs below.
Example inputs
- Withheld cash tranches
- Tranche description: Progress withholding
- Cash withheld in this tranche: $10,000.00
- Assumed days this cash remains unavailable: 90.00 days
- Your annual simple funding-cost assumption: 8.00 %
- Simple carrying cost of entered withheld cash
- $197.26
- Total entered cash withheld
- $10,000.00
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Value specified withheld-cash exposure.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.