Free tool

Contractor deposit calculator

Enter the job price and your deposit. See what to collect up front and what’s left when the job is done.

$
%

Only if you charge sales tax on this job. Leave blank if not.

Deposit
%

Deposit to get started

$1,500.00

30% of the job total

Job price
$5,000.00
Job total
$5,000.00
Deposit
− $1,500.00
Balance on completion
$3,500.00

Text for your customer

Deposit to get started: $1,500.00 (30% of the job). Balance on completion: $3,500.00. Job total: $5,000.00.

Nothing you type is saved or sent anywhere. The deposit is figured on the total including tax, rounded to the cent.

Send it as a real deposit invoice

Put the deposit right on your quote. When the customer accepts, Lead2Project can send the deposit request automatically, and they pay by card on the spot.

Start freeHow deposits work →

How much deposit should a contractor charge?

There’s no single right number. A deposit has two jobs: cover what you have to spend before the work starts, and show the customer is committed. Start from those two and the number usually picks itself.

What to think about

  • Materials you buy up front. If you’re ordering shingles, fixtures or custom pieces before day one, the deposit should cover them. You shouldn’t be financing a customer’s job.
  • Special orders. Anything made to measure or non-returnable is money you can’t get back if the customer cancels.
  • Job size and length. On a short repair you might ask for a small deposit or none. On a long job, consider progress payments instead of one big deposit.
  • The customer. A repeat customer you trust might get lighter terms than a first-time one.
  • The law where you work. Some states limit deposits on home improvement jobs or control where the money goes. See below.

Put it on the quote, not in a text later

The easiest deposit to collect is one the customer saw before they said yes. Show the deposit and the balance right on the quote, and send the deposit request as soon as they accept, while the job is fresh. Use the calculator above, copy the text, and paste it into your quote or message.

Check your state’s rules

A couple of examples of how much the rules can differ:

  • New York: for home improvement work, the state Attorney General says payments received before the job is substantially complete must go into an escrow account at a New York bank within five business days, or the contractor must give the customer a bond or contract of indemnity instead. The contract must also be in writing. NY AG home improvement fact sheet
  • California: on home improvement contracts, the down payment can’t be more than $1,000 or 10% of the contract price, whichever is less, with exceptions for some bonded contractors. Cal. Bus. & Prof. Code § 7159.5

Rules change and depend on the type of work, so check your state and local rules before you set your deposit. This page is general information, not legal advice.