Deposit and Progress Payment Schedule Calculator
Set deposit, progress draw, and final payment terms that protect cash by modeling upfront costs, payment lag, working-capital need, and financing cost.
Labor, materials, rentals, subs, permits, and other direct costs
Materials, mobilization, supplier deposits, permits
Capped so deposit + progress + final does not exceed 100%
Cash gap before final pay
- Deposit collected
- $17,000
- Upfront cash need
- $20,300
- Progress draw
- $38,250
- Final payment
- $29,750
- Lowest cash positionNegative means you are financing the job before cash arrives
- -$22,150
- Max cash gap
- $22,150
- Working capital neededIncludes $5,000 target reserve
- $27,150
- Estimated financing cost
- $287
- Recommended depositDeposit needed to protect the target reserve with this schedule
- 51.9%
- Gross margin after direct cost
- 31.8%
Payment schedule cash events
This estimate is based on national average costs and may vary by region, project specifics, and market conditions. Use as a starting point for your bids.
Payment terms decide whether a profitable job still strains cash
A bid can show a healthy margin and still create a cash problem. The gap usually comes from timing: deposits are too small, progress draws arrive after payroll and materials are already paid, or the final invoice sits for 30 days after completion.
This calculator maps the schedule as cash events. It estimates the deposit collected, upfront costs, mid-job cost burn, progress draw receipt, final cost burn, and final payment receipt. The lowest running cash position is the amount your company has to finance or cover from reserves.
A worked example
On an $85,000 job with $58,000 of direct cost, a 20% deposit brings in $17,000. If 35% of job cost leaves upfront, cash starts negative by $3,300. By the midpoint, another $18,850 of cost has been paid, so the cash low point is about $22,150 before the progress draw arrives.
With a $5,000 target reserve, the schedule needs about $27,150 of working capital. The fix is not always "raise price." Often it is a larger deposit, shorter payment terms, earlier progress draw, or customer-paid long-lead materials.
How to use this in a proposal
Use the result to write plain payment terms: deposit due at signing, progress draw due before a defined phase starts, and final payment due on completion or substantial completion. If the customer pushes back, trade the deposit for faster progress draws instead of silently financing the job.
Frequently asked questions
Is this the same as a retainage calculator?
No. Retainage models money held back after progress billing. This calculator models the basic payment schedule before the contract is signed: deposit, progress draw, final payment, payment terms, and the cash gap those terms create.
What counts as upfront cost?
Include materials, mobilization, permits, rentals, deposits to suppliers, and any labor you must pay before the first customer draw arrives. If cash leaves before the customer pays, it belongs in the upfront or first-half job cost.
Should I ask for the recommended deposit percentage?
Use it as a negotiation target, not a legal rule. Some states and contract types limit deposits. If the recommended deposit is too high, use earlier progress billing, shorter payment terms, or owner-purchased materials to close the same cash gap.
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