Deposit, progress, final. Split it once.
Put in the job total, your deposit percentage, how many progress payments and what you hold back to the end, and get the dollar amount for every payment on the schedule.
Redline quotes carry a deposit percentage. On Solo and up you bill the deposit with a card pay link, then invoice the rest as the job moves.
Try Redline freeCheck your state's rules before you set a deposit.
Some states limit how much a contractor can collect up front on a home improvement contract, and some set rules for what the contract has to say about payments. This calculator does the arithmetic only. It isn't legal advice, and it doesn't know your state's limits.
How the math works
The deposit is the job total times your deposit percentage. The balance is what's left. If you hold back a final payment until the job is done, that's the job total times the final percentage. Whatever sits between the deposit and the final is split evenly across your progress payments.
Set progress payments to 0 and the whole balance becomes the final payment, due at completion. That's the simple deposit-and-balance job.
Tie each progress payment to something both sides can see: materials delivered, rough-in passed, cabinets set, shingles on. A payment tied to a date invites an argument when the job slips; a payment tied to a milestone doesn't.
Worked example
A $12,000 job with a 30% deposit, two progress payments and 10% held to completion:
| Payment | When (example milestone) | Share | Amount |
|---|---|---|---|
| Deposit | Contract signed, before materials are ordered | 30% | $3,600 |
| Progress 1 | Materials delivered and work started | 30% | $3,600 |
| Progress 2 | Main work complete | 30% | $3,600 |
| Final | Punch list done and walkthrough signed off | 10% | $1,200 |
| Total | 100% | $12,000 |
The percentages and milestones are examples, not recommendations. Your contract and your state's rules decide them.
What to watch for
- Put the schedule in writing before you start, with the amounts and the milestones, so nobody is surprised when an invoice shows up.
- Custom orders (special-order windows, cabinets, a specific shingle color) are where a deposit matters most. If the job dies after you order, you're holding the material.
- Change orders change the schedule. Add the extra to the next payment or bill it on its own, and say which in writing.
- A final payment held back gives the customer a reason to sign off. Too large a holdback and you've financed their job.
- Small service work rarely needs a deposit. If the job is a day or less, billing at completion is common.
Questions contractors ask
How much deposit should a contractor ask for?
This page doesn't suggest a percentage, because the right one depends on your trade, the material costs up front and what your state allows. Start from what you'll spend before the job starts (materials, permits, a dumpster), check your state's rules on down payments for home improvement work, and set it there.
Is a deposit the same as a retainer?
People use both words loosely. What matters is what your contract says: whether it's applied to the final bill, and whether any of it is refundable if the job is canceled. Have your contract reviewed for your state.
How does Redline handle deposits?
Quotes in Redline carry a deposit percentage, and you build them by chat on any plan ("quote the Brennans a deck rebuild with a 30% deposit"). Quotes save as drafts that you present or email from your Gmail; customers can't accept them online inside Redline yet. Once they say yes, on Solo ($29 a month) you bill the deposit as an invoice with a card pay link, then invoice each progress payment and the final by chat when they come due. Redline doesn't create the deposit invoice on its own; you send each one. Overdue alerts at day 3, 7 and 14 go to you on regular invoices; deposit invoices aren't chased.
Related
Keep reading
- Quotes and estimatesItemized quotes by chat or from a photo, with a deposit. Options and tax in the composer.
- Invoicing and card paymentsInvoice from the job in two taps or one message. Customers pay by card.
- Deposit request emailAsk for the deposit the day they say yes, before you order.
- Late fee calculatorWork out the late charge on an overdue invoice from the terms you already set.