Progress Billing Calculator

How progress billing works

On a progress-billed contract you invoice as the work gets done, rather than at the end. Each period you report how much of each line item is complete, and you are paid for the value of that completed work, less retainage, less what you were already paid.

A simple example

A $100,000 contract with a 10% retainage rate. At the end of month one, $30,000 of work is complete. Month two brings the total to $55,000.

• Month one: $30,000 complete, $3,000 retainage, $27,000 billed.
• Month two: $55,000 complete, $5,500 retainage, $49,500 earned less retainage, minus $27,000 already billed = $22,500 due this month.

Tips for clean billing

• Bill from a schedule of values that matches the contract, so the owner can verify each line.
• Track change orders separately and add them once approved.
• Include stored materials only if the contract allows it.
• Keep the previous-payments column in line with what was actually received.

Billing too far ahead

Front-loading your schedule of values or over-reporting percent complete can cause disputes and delays in payment. Report what is actually done.