Job Deposit and Progress Payment Calculator
Size the deposit from up-front materials and crew time you front, build a milestone progress payment schedule, and check it against a statutory down-payment cap.
How this is calculated
The deposit covers what you lay out before any revenue comes back: special-order materials plus the crew time you reserve before the first milestone.
materialsFronted = sum of each material line
crewFronted = crewDays x dailyCrewRate
rawDeposit = materialsFronted + crewFronted
deposit = min(rawDeposit, cap, contractPrice)
balance = contractPrice - deposit
milestone[i] = balance x milestonePct[i]When a statutory cap applies, the deposit is the lesser of the raw calculation, the cap, and the contract price. In California, Business and Professions Code section 7159(d)(8)(C) states: "The downpayment may not exceed $1,000 or 10 percent of the contract price, whichever is less." Section 7159.5(a)(3) sets the same ceiling: the down payment shall not exceed one thousand dollars or 10 percent of the contract amount, whichever is less. Contractors who furnish a performance and payment bond, or another bond or joint control approved by the registrar covering full performance and payment, are exempt per section 7159.5(a)(8). Other states' rules were not read here: enter your own state's limit, or leave the cap fields blank for an uncapped calculation.
Progress payments must not run ahead of the work delivered: California BPC 7159(d)(9)(C) says "it is against the law for a contractor to collect payment for work not yet completed, or for materials not yet delivered." The milestone schedule this calculator produces is a planning aid: tie each draw to a concrete scope checkpoint so the customer can see the work before paying.
The contract price used here comes from your job cost / service price calculator, and the deposit and progress payments flow into your invoice template or contractor invoice. For a broader look at when and how to collect, see the guide on how to get paid faster.
If you need to hold back a percentage of each progress payment until the job is accepted, see the retainage entry. For the differences between an estimate, a quote, and a bid, see the estimate vs quote vs bid guide.
Sources
- BPC 7159: Home Improvement Contract requirements, including deposit cap at section (d)(8)(C). California Legislative Information. Retrieved .
- BPC 7159.5: home improvement contract payment rules, deposit cap at (a)(3), bond exemption at (a)(8). California Legislative Information. Retrieved .