Contractor deposit calculator
Enter the job total and the deposit percentage you want to take to see the deposit due now and the remaining balance. Pick a state to check common deposit limits.
Priced the job? Now get paid for it.
Collect that deposit the moment the customer says yes. Send your customer an invoice they pay by card from the email with Redbud Way, or a quote that collects a deposit up front. It's free, and we never take a cut of your jobs; Stripe's standard fees apply, billed by Stripe.
How much deposit should a contractor charge?
Most deposits land between 10% and 50% of the job. A practical way to set yours: cover the materials and mobilization you have to pay for before work starts, plus a little to protect against a cancellation. Smaller jobs that are mostly materials often justify 30–50%; large, multi-stage projects are usually 10–20% up front with the rest tied to milestones.
A deposit over 50% makes many customers nervous and is restricted in some states, so keep it reasonable and tie later payments to visible progress.
State deposit caps we list
We list a few states with statutory caps on home-improvement deposits. Others, and some cities, also limit deposits, so check with your licensing board:
- California: California home improvement contracts: the down payment may not exceed 10% of the contract price or $1,000, whichever is less (Bus. & Prof. Code § 7159.5).
- Nevada: Nevada work on an owner-occupied single-family home: the initial deposit may not exceed 10% of the contract price or $1,000, whichever is less, unless the contractor has filed a $100,000 consumer-protection bond (NRS 624.970). Residential pool and spa contracts over $1,000 have the same cap (NRS 624.940).
- Maryland: Maryland home improvement contracts: a contractor may not take a deposit of more than one third of the contract price (Bus. Reg. § 8-617).
- Massachusetts: Massachusetts residential contracts over $1,000: the deposit may not exceed one third of the contract price, or the actual cost of special-order or custom materials that must be ordered before work starts, if that is greater (M.G.L. c.142A § 2).
Frequently asked questions
- How much deposit should a contractor charge?
- Deposits typically range from 10% to 50%. Smaller jobs (where most of the cost is materials bought up front) often run 30–50%; large projects are usually 10–20% with the rest tied to milestones. Asking for more than 50% up front is a common red flag for customers.
- Is it legal to ask for a 50% deposit?
- It depends on your state and the job type. Some states cap home-improvement deposits. For example, California and Nevada limit them to 10% of the contract or $1,000 (whichever is less), and Maryland and Massachusetts cap them at one third. Other states, and some cities, also limit deposits, so check with your licensing board.
- Should the deposit count toward the total?
- Yes. A deposit is a partial pre-payment of the job, not an extra fee. This calculator shows the deposit due now and the remaining balance, which together equal the job total.
- Are there card fees on the deposit and the balance?
- Yes. Stripe charges 2.9% + 30¢ on every card payment, and the deposit and the balance are two separate payments, so the 30¢ applies to each. When you send the job as a quote on Redbud Way, Stripe also charges 0.4% Stripe Invoicing on each payment, the same as on an invoice. For example, a $2,000 quote with a 25% deposit costs $66.60 in Stripe fees in total, so you keep $1,933.40. Tick “Customer pays by card” to see the fees on both payments and what you keep. Stripe bills these to your own Stripe account; Redbud Way charges 0%.