Deposit & Progress Billing Calculator
A deposit isn't a courtesy — it's the customer financing the job's front-loaded costs instead of you. Enter the contract, your deposit, the materials share and any retention, and see whether the money arrives before the costs it has to fund, and what you're exposed to meanwhile.
Method and content reviewed October 1, 2026 · formulas checked against a test suite · runs entirely in your browser
Deposit $ = Contract × Deposit % — must cover materials + mobilization$12,000.00 × 0.30 = $3,600.00 vs $5,400.00 of front-loaded materialsStructure the milestones the same way: each payment should arrive before the costs it funds — mobilization, rough-in, finish, completion. Two limits to respect: many jurisdictions cap residential deposits by law (California, for example, caps them at $1,000 or 10% whichever is less — check yours), and a schedule that front-loads payments beyond work performed reads as a red flag to customers and lawyers alike.
Remodeling: where the number comes from
A remodeler signs a $12,000 kitchen flooring job at a 35% margin, takes a 30% deposit, and the job's materials run about 45% of the price up front. (Illustrative example — use your own contract.)
| Input | Value |
|---|---|
| Contract price | $12,000 at 35% margin |
| Deposit | 30% |
| Materials share | 45% of price, up front |
Result: The 30% deposit leaves $1,800 of materials on your float
The coverage test fails: the deposit doesn't reach the $5,400 of materials. A 45% deposit — or a materials invoice passed through at signing — closes the gap, so the customer's money finances the customer's job instead of your credit line.
Load this example into the calculatorThe calculation
| Deposit | $12,000 × 0.30 = $3,600.00 |
| Total cost to you | $12,000 × 0.65 = $7,800.00 |
| Front-loaded materials | $12,000 × 0.45 = $5,400.00 |
| Float you finance | $5,400 − $3,600 = $1,800.00 |
| Exposure after deposit | $7,800 − $3,600 = $4,200.00 |
| Final payment at completion | $12,000 − $3,600 = $8,400.00 |
How this calculator works
Every result comes from the formulas below — the math shown is the math used. Change any input and results update instantly in your browser; nothing is sent to a server.
- Deposit amount:
Deposit = Contract × Deposit % - The coverage check:
Deposit ≥ Materials Share + MobilizationThe rule the schedule exists to enforce: the customer's money pays the job's front-loaded costs, never your float. - Cost exposure after deposit:
Exposure = Total Cost − DepositUnrecovered cost while the work proceeds — the float you're financing between milestones. - Final payment:
Final = Contract − Deposit − Retention
What the result means
The coverage check is the point: the deposit should reach the job's front-loaded costs so the customer's money finances the customer's job. The exposure row is the float you finance between milestones; with retention, the exposure-before-release row is the number to negotiate.
When to use it
Use it when structuring any contract over a few thousand dollars — and at each milestone, to check the money still arrives before the costs it funds.
Want the concept behind the math in depth? Read Deposits and Progress Billing: Make the Customer's Money Pay for the Job or The Cost of Slow Payment: Every Day Past Terms Is a Loan You Made.
Common mistakes
- Setting the deposit by habit instead of from the materials share.
- Exceeding legal deposit caps — many jurisdictions limit residential deposits by statute.
- Discovering retention terms at the end instead of pricing them into the schedule.
Frequently asked questions
How much deposit should a contractor take?
Enough to cover the job's front-loaded costs — materials plus mobilization — which for material-heavy trades is commonly 25–50%. The honest way to set it: total what the job spends before labor accrues, add a little for the cancellation risk you're absorbing, and that's the deposit. Check local law first: many jurisdictions cap residential deposits (California, for instance, caps them at $1,000 or 10%, whichever is less).
What's the difference between a deposit and progress billing?
A deposit is the first piece of the schedule. Progress billing invoices the job in stages — rough-in, finish, completion — with each payment sized to arrive before the costs it funds. The same coverage test applies to every milestone: money before materials, not after.
What is retention (retainage)?
A percentage of each payment the customer withholds until completion — 5–10% is common on commercial work, rare on residential. It's deferred cash you finance, so it belongs in the schedule consciously: the calculator shows your exposure with the retention still held, which is the number to negotiate, not discover.
Why do customers resist deposits?
Usually fear of the contractor disappearing with the money, which is a transparency problem: a deposit explained as 'materials for your job, which arrive week one' reads as competent staging, while an unexplained 50% reads as a red flag. Itemizing what the deposit buys converts most resistance — and the customers it doesn't convert are declining to finance their own job's materials.
The schedule fixed the front-loaded float — now price what the slow payers cost after completion.
Price late payment →Related tools and guides
Deposit & Progress Billing Calculator is part of RateCraft, a set of free pricing and estimating tools for contractors and service businesses. Results are calculated entirely in your browser and are estimates for planning purposes — see our disclaimer and methodology.