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Progress billing calculator.
Type the contract price, the accomplishment this billing and the advance and retention terms. Get the gross billing, every deduction and the net amount the owner pays.
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Construction progress billing calculator
Net amount due this billing
₱1,464,285.71
On a ₱10,000,000 contract, a billing for 20% accomplishment is ₱2,000,000.00 gross; less ₱300,000.00 advance recoupment (15%), ₱200,000.00 retention (10%) and ₱35,714.29 in 2% withholding tax, the net amount due is ₱1,464,285.71.
| Gross billing (20%) | ₱2,000,000.00 |
|---|---|
| of which VAT (12%) | ₱214,285.71 |
| Advance recoupment | ₱300,000.00 |
|---|---|
| Retention | ₱200,000.00 |
| 2% withholding tax | ₱35,714.29 |
| Net amount due | ₱1,464,285.71 |
|---|
| Accomplishment to date | 50% |
|---|---|
| Retention held to date | ₱500,000.00 |
How it was worked out
- Gross billing. ₱10,000,000.00 × 20% accomplished this billing = ₱2,000,000.00. With 30% billed before, the work is 50% billed to date.
- Advance recoupment. The 15% advance is recouped from each billing in proportion: 15% × ₱2,000,000.00 = ₱300,000.00. (Revised IRR of Republic Act No. 9184, Annex E: advance payment and retention money)
- Retention. 10% of the gross billing is held back until the work is accepted: 10% × ₱2,000,000.00 = ₱200,000.00. (Revised IRR of Republic Act No. 9184, Annex E: advance payment and retention money)
- Withholding tax. The billing includes VAT, so the base is ₱2,000,000.00 ÷ 1.12 = ₱1,785,714.29. 2% × ₱1,785,714.29 = ₱35,714.29, withheld by the owner, who issues a BIR Form 2307. (BIR Revenue Regulations No. 2-98, as amended: 2% expanded withholding on contractors)
- Net amount due. ₱2,000,000.00 − ₱300,000.00 − ₱200,000.00 − ₱35,714.29 = ₱1,464,285.71.
- The contract price is taken as the billing figure as written: VAT-inclusive for a VAT-registered contractor.
- On a government project, a 5% final VAT is also withheld and liquidated damages may be deducted; both are left out.
- Under the RA 9184 IRR the retention may stop once the work is 50% done if it is satisfactory, and it may be replaced by a bond. Check your contract.
Rates and rules as of November 8, 2026. A guide, not legal or tax advice.
Rate changes
Know the day the rates change.
Questions
Asked and answered.
How is a progress billing computed?
Multiply the contract price by the accomplishment added since the last billing. From that gross, deduct the advance recoupment, the retention and any withholding tax to get the net amount due.
What is the retention in a construction contract?
A share of every progress billing, usually 10%, that the owner holds back until the work is finished and accepted. It is released at final acceptance, or earlier against a bond.
How is the advance payment recouped?
Pro rata: each billing deducts the same share as the advance was of the contract. A 15% advance means 15% off every billing until it is fully repaid.
How much withholding tax applies to a contractor?
2% of the billing net of VAT is withheld as creditable tax. The contractor credits it against its income tax using the BIR Form 2307.
From Blueprint
This is one figure Blueprint works out for you.
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