For trades
How much deposit should a contractor charge?
Asking for a deposit protects you from covering material costs out of pocket and from clients who cancel at the last minute. Here's how much to ask for and how to handle it professionally.
A typical range: 30% to 50%
For most residential jobs, a deposit of 30–50% of the total is standard and reasonable. Smaller jobs often sit around 30%; larger jobs with significant upfront material costs may justify closer to 50%. The goal is simple: the deposit should at least cover the materials and time you commit before the client pays the balance.
When to collect it
Collect the deposit when the client accepts the quote, before you order materials or schedule the work. A signed quote plus a paid deposit is your green light to begin. Never front large material costs before the deposit clears.
Structure the rest of the payment
For bigger projects, break payment into stages rather than one deposit and one final bill. A common structure is 40% on acceptance, 30% at the halfway point, and 30% on completion. Staged payments keep cash flowing and reduce your risk if a project stalls.
Put it clearly on the invoice
State the deposit terms in writing on your quote and invoice — for example, "50% deposit due on acceptance, balance due on completion (Net 30). Materials billed at cost." Clear terms prevent awkward conversations later.
Separate labour and materials
Always list labour and materials as separate line items. Clients trust an invoice that shows exactly what they're paying for, and it makes disputes far less likely. Our free contractor invoice generator comes pre-set with labour, materials, and fee lines plus a deposit clause you can edit.