The cap is reached
USD 10,000 at entered 5% gives USD 500. Earlier deductions of USD 500 against a USD 1,000 lifetime cap permit that new deduction. Opening unreleased USD 500 plus USD 500 less approved release USD 200 leaves USD 800 unreleased.
Project billing
Free Invoice Retention Cap Calculator
Use this entered model only when your agreement caps lifetime deductions. A release reduces the unreleased balance but does not create fresh capacity under that lifetime cap.
What you can do here
Reconcile a current retention deduction, cumulative lifetime cap and approved release while keeping the unreleased balance separate from cash receipt.
Built for real invoice workflows
Review the actual retention terms and release authority before using the figures in billing.
Preparing your calculator with today’s date…
Calculation notes
How the result is calculated
Calculate eligible subtotal × entered rate, rounding once to cents. New deduction is the smaller of this amount and cap minus cumulative earlier deductions. Closing unreleased balance = opening unreleased balance + new deduction − approved release. Closing cumulative deductions = earlier cumulative deductions + new deduction. Releases do not replenish this lifetime cap. This model does not determine a legal rate, contractual release trigger, tax, certification, escrow or receipt of cash.
Formulas and examples reviewed October 2, 2026. Illustrative figures; no tax or contractual determination.
Only part of the rate deduction fits
If earlier cumulative deductions are USD 900 against the same cap, the new deduction is USD 100. An approved release does not reset the lifetime deduction total.
Questions about this calculation
Can I use a cap on the current held balance?
This tool models a lifetime deduction cap. A cap on the currently unreleased balance needs different arithmetic; follow the actual agreement.
Does an approved release mean it has been paid?
No. Record the release decision and actual invoice or payment treatment, then track cash receipt separately.
Sources and further reading
How to use it
1
Enter the eligible subtotal, agreed rate and lifetime deduction cap.
2
Separate cumulative deductions from the opening unreleased balance.
3
Add only an approved release and compare the closing balances with the agreement.
Why it helps
Limit a new deduction to remaining lifetime cap capacity.
Keep release and cash receipt as separate events.
Reconcile cumulative deductions and the unreleased balance.
Next step
From free tool to live invoice workflow.
Use the result when creating your invoice in InvoiceAgent. Planner setup links carry the settings they describe into a draft. Review your dates, amounts, PDF, and reminder settings before scheduling.
Related workflows
Move from the quick answer into the rest of the invoice system.
Reconcile retention movement
Reconcile retention movement
Keep cumulative and unreleased totals distinct.
Verify release authority
Verify release authority
Retain actual triggers and decision evidence.
Review the cap model
Review the cap model
Check the agreement before applying a deduction.
Invoice templates
Invoice templates
Use the result inside invoice formats that are ready for clients and easier to automate.
Knowledge base
Knowledge base
Review the billing concepts behind the numbers before they go onto a live invoice.