Retention Calculator
Calculate retention amounts, release schedules, NPV of tied-up capital, and cash flow impact.
$10.00M
50% released at completion, 50% at end of DLP
Total Retention
$1.00M
Annual Cost of Capital
$25K
NPV of Retention
$976K
| Milestone | Month | Amount Released | Balance |
|---|---|---|---|
| Practical Completion | Completion | +$500K | $500K |
| End of DLP | Month 12 | +$500K | $0 |
FINANCIAL DISCLAIMER
This calculator provides INDICATIVE FIGURES for reference purposes only.
Important:
1. Results are based on standard formulas and user-provided inputs. Actual contractual amounts may differ based on specific contract terms and conditions.
About This Calculator
This retention calculator helps contractors understand the financial impact of retention withholdings on construction projects. Calculate cumulative retention amounts, forecast release schedules based on contract milestones, and determine the net present value of tied-up capital. Essential for cash flow planning and evaluating retention bond alternatives in UAE and Gulf construction contracts.
When to Use This Calculator
- Planning project cash flow with retention deductions
- Comparing retention vs retention bond options
- Forecasting retention release at key milestones
- Calculating NPV impact of delayed retention release
- Negotiating retention terms in contract negotiations
How to Use This Calculator
Enter contract parameters
Input contract value, duration, and billing frequency
Define retention terms
Specify retention percentage, threshold, and maximum cap
Set release milestones
Enter Substantial Completion and DLP end dates
Input financing cost
Enter interest rate for NPV calculation of tied capital
Review retention analysis
View cumulative retention, release schedule, and NPV impact
Typical Scenarios in UAE & Gulf Projects
200M AED contract with 10% retention capped at 5% (10M max). Calculator shows retention builds to 10M by month 6, held for 24-month construction plus 12-month DLP. NPV cost of tied capital at 8% rate = 2.1M AED. Retention bond at 1.5% annual = 450K saves 1.65M.
15M AED interior fit-out with 5% flat retention. Calculator forecasts 750K retention held, 50% (375K) released at Practical Completion, remainder after 6-month DLP. Short duration makes retention bond less economical than cash retention.
Frequently Asked Questions
Take Your Calculations Further
This calculator reflects the logic built into Arkan's construction management platform.
Last Updated: January 2026
Standards Reference: FIDIC Contract Conditions, UAE Commercial Transactions Law