How to take a deposit on an estimate (and how much to ask for)

To take a deposit on an estimate, put the deposit amount on the estimate itself, as a fixed amount or a percentage, get the estimate signed, and have the customer pay the deposit right then, before you order materials. How much to ask for depends on what you’ll spend up front and on your state: for home improvement work in California, for example, the down payment can’t be more than $1,000 or 10 percent of the contract price, whichever is less. Check your state’s rule first, then set one policy and use it every time.

When should you ask for a deposit?

Ask when you’ll spend money or turn down work before the job starts:

• You’re ordering materials: a water heater, a panel, shingles, a special-order fixture.
• You’re holding a date: a two-day job on next week’s calendar means turning other customers away.
• The job is big enough that a no-show would hurt.

For a service call or a same-day repair, skip it. A deposit on a $200 job adds friction for no protection.

How much should the deposit be?

Start from your costs, not a round number. The deposit’s job is to cover what you’ll spend before the customer has seen any work: mostly materials, sometimes a permit. A fixed amount is easiest to explain on small jobs; a percentage scales on big ones.

Then check the law. California’s Contractors State License Board says that on a home improvement job, the down payment can’t be more than $1,000 or 10 percent of the contract price, whichever is less, with no exception for special-order materials, and that payments during the job can’t exceed the value of the work performed. California also requires a written contract for any home improvement project over $500. Other states have their own rules for home improvement contracts, so look up your state’s contractor licensing board before you print a deposit policy.

How do you get the deposit paid at signing?

The best moment to collect a deposit is the moment the customer says yes. Here’s the order that works:

1. Put the deposit on the estimate. In FieldFlow, add it as a fixed amount or a percentage, and it shows on the estimate the customer reads.
2. Get it signed. On your phone while you’re there, or from a link they open later, confirmed with a code FieldFlow emails them.
3. Collect it right away. In FieldFlow, the moment they sign, the deposit invoice is made and they can pay it right there, by card or by bank transfer where your Stripe account supports it.
4. Order the materials after the money lands, not before.

If they’d rather hand you a check, record it against the deposit invoice in two taps.

Card or bank transfer for the deposit?

Offer both, and mention the bank transfer on big deposits. Stripe lists 2.9% + $0.30 for a card and 0.8%, capped at $5 for an ACH bank debit. Through FieldFlow a card costs 3.2% + $0.30 and a bank transfer 1.1% or less, so on a $5,000 deposit the bank transfer saves you about $140. Our post on card and bank transfer fees has more examples.

What about progress payments on longer jobs?

For a job that runs over days or weeks, split the rest into progress payments tied to milestones: rough-in done, inspection passed, final walkthrough. Keep each one at or below the value of the work done by then (California requires that). In FieldFlow, deposits and progress payments sit on the same job, so what’s paid and what’s owed stays on one invoice.

What happens at the end?

When the job’s done, convert the signed estimate to the invoice. The paid deposit comes off the total, so the customer pays only the balance, and the invoice shows both. Send it with a pay link before you leave.

The short version

Decide your deposit from your up-front costs, check your state’s cap, put it on the estimate, and collect it at signing. FieldFlow’s estimates and invoices handle the deposit invoice on their own, at $19/month for the whole business with a 90-day free trial. This is general information, not legal advice; check your state’s rules for your trade.

Questions owners ask

How much deposit should a contractor ask for?

Enough to cover what you'll spend before the job starts, mostly materials, and no more than your state allows. For home improvement work in California the limit is $1,000 or 10 percent of the contract price, whichever is less. Where there's no cap, a fixed amount or a percentage tied to the materials is easy to explain.

Is it legal to take a deposit before starting work?

Generally yes, but some states limit how much and when for home improvement contracts. California, for example, caps the down payment. Check your state's contractor licensing board before you set your deposit policy.

What happens to the deposit when I send the final invoice?

It comes off the total. In FieldFlow, when the signed estimate is converted to the invoice, a paid deposit is carried onto it, so the customer sees what they've paid and what's left.

Should the deposit be paid by card or bank transfer?

Either works; offer both. On a large deposit a bank transfer costs much less to receive. Through FieldFlow a card costs 3.2% + $0.30 and a bank transfer 1.1% or less.