How much deposit should you ask for?
Typical deposit percentages by type of job, how to ask without losing the client, deposit rules to know, and how to show it on the final invoice.
Published · By the Invoice Mint team
The short answer
Most service businesses ask for a deposit of 10 to 50 percent of the job price. Cover at least the materials and any custom orders you cannot return; 25 to 50 percent is common for custom or material-heavy work, 10 to 25 percent for larger renovations paid in stages, and small same-day jobs often need none. Put the amount and due date in the estimate, check any local limits (California caps most home improvement down payments at $1,000 or 10 percent, whichever is less), and show the deposit and remaining balance on the final invoice.
A deposit does three things. It keeps you from funding a client’s project with your own money. It holds the date in your calendar against a client who might change their mind. And it filters: a client who resists paying anything up front is often the same client who resists paying at the end.
Clients are used to deposits. What puts them off is a deposit that appears late, is not explained, or does not match what they agreed to.
How much deposit do contractors typically ask for?
Contractors typically ask for no deposit to 10% on small same-day jobs, enough to cover materials on material-heavy jobs, 30 to 50% on custom or made-to-order work, 10 to 25% plus progress payments on large renovations, and 25 to 50% for events and booked dates. If you are unsure, start from the cost of the materials.
| Type of job | Typical deposit | Why |
|---|---|---|
| Small, same-day jobs | None to 10% | Low risk, paid on completion |
| Material-heavy jobs | Enough to cover materials | You buy before you start |
| Custom or made-to-order work | 30–50% | Cannot be returned or resold |
| Large renovations | 10–25%, then progress payments | Spreads risk across milestones |
| Events and booked dates | 25–50%, often non-refundable | Holds a date you turn others down for |
If you are unsure, start from the materials. A deposit that at least covers what you must buy before the first day of work means you never carry a client’s costs on your own credit card.
What are the deposit rules where you work?
Some places limit deposits on residential work. In California, the down payment on most home improvement contracts cannot exceed $1,000 or 10 percent of the contract price, whichever is less. Other states and provinces set their own limits, or require deposits to be held separately, and rules often differ for commercial work.
This is general information, not legal advice. Check with your licensing body or trade association before you change how you take deposits.
When should you ask for a deposit?
Ask for the deposit in the estimate the client approves, stating the amount, when it is due, what happens if the job is cancelled, and that it is credited against the final invoice. A deposit the client did not expect, requested after they said yes, feels like a trap.
The deposit belongs in the estimate the client approves: the amount, when it is due, what happens to it if the job is cancelled, and that it is credited against the final invoice. Asking for money the client did not expect, after they have said yes, is what makes a deposit feel like a trap.
Deposit: 30% ($1,350.00) due on acceptance to schedule the work and order materials. Credited in full against the final invoice. Refundable, less the cost of any custom materials already ordered, if cancelled more than 7 days before the start date.
How do you ask a client for a deposit?
Ask by explaining what the deposit pays for, giving a specific amount and due date, and making it easy to pay with a link or e-transfer details. Do not order materials or hold the date until it arrives, and send a receipt once it is paid so the client has a record too.
- Explain what it pays for: “The deposit covers the cabinets, which are made to order.”
- Give a specific amount and due date, not just a percentage.
- Make paying it easy — a link or e-transfer details, not “let me know how you want to pay”.
- Do not order materials or hold the date until it arrives.
- Send a receipt when it is paid, so the client has a record too.
How do you show the deposit on the final invoice?
The final invoice should show the whole job, then the deposit, then what is left. An invoice for the full amount after a deposit is the fastest way to start an argument you did not need.
| Line | Amount |
|---|---|
| Kitchen backsplash, supply and install | $4,500.00 |
| Tax (13% HST) | $585.00 |
| Total | $5,085.00 |
| Deposit received October 2, 2026 | −$1,350.00 |
| Balance due by November 14, 2026 | $3,735.00 |
How tax applies to deposits varies between countries and tax regimes, so ask your accountant whether to charge it when the deposit is paid or on the final invoice.
How do deposits work on longer jobs?
For work that runs more than a couple of weeks, a single deposit is rarely enough. Agree a schedule of progress payments tied to visible milestones — materials delivered, rough-in complete, final walkthrough — and invoice each one when it is reached, with its own due date. The client always knows what the next payment is for, and you are never more than one stage out of pocket.
Common questions
What is a normal deposit for a contractor?
Ten to fifty percent of the job price is typical. Material-heavy and custom work sits at the higher end, larger renovations with progress payments at the lower end. At a minimum, a deposit should cover materials you will have to buy before you start.
Is there a legal limit on contractor deposits?
In some places, yes. California limits the down payment on most home improvement contracts to $1,000 or 10 percent of the contract price, whichever is less, and other states and provinces have their own rules. Check the rules where the work is done before you set your deposit.
How do I show a deposit on an invoice?
List the full job as usual, show the total including tax, then subtract the deposit as its own line with the date it was paid. The invoice should end with the remaining balance due and a due date.
What is the difference between a deposit and a retainer?
A deposit is an advance on a specific job and is credited against the final invoice. A retainer usually secures your availability or ongoing work over a period, and whether it is refundable or credited depends on the agreement.
