How to ask for a deposit

Updated October 31, 2026

How to ask for a deposit in plain words, work out a fair amount and write refund terms that hold up. Includes wording to copy and the legal limits to check first.

Ask for a deposit at the moment the customer says yes, in writing, as a normal step and not a favour. State the amount, what it covers, when it's due, how to pay and what happens if plans change. For example: "To book you in for March 3, I take a $950 deposit, which covers materials and holds the date. The balance of $2,850 is due when the job's done."

How much to ask depends on what you stand to lose if the customer pulls out: materials you've bought, plus the work you turned down to hold their date. Before you set a figure, check whether a limit applies. Some places cap deposits on home improvement work by law, and California's cap is low.

How much to ask for

There's no universal percentage and you shouldn't trust anyone who gives you one as a rule. Work it out from your own risk instead.

1. Add up what you'll spend before the job starts. Materials, special orders, hire, subcontractor bookings.
2. Add what a cancellation would cost you. If you turned down other work for those days and can't refill them, that's a real loss.
3. Round to a clean figure. A percentage of the total is easy to explain, and you can keep it the same across jobs.
4. Check the legal limit for your trade and location.

For big jobs, consider staged payments instead of one large deposit. They're easier to ask for, and they match money to progress. The FTC's advice to homeowners is not to pay the full amount up front and to hold the final payment until the work is finished, so a good customer will expect exactly this.

A worked example

A plumber quotes $3,800 for a kitchen rough-in, starting in three weeks. He'll spend $620 on fittings and pipe that can't all be returned, and he's holding two full days. If he asks for 25%, that's $950: enough to cover the materials and part of those days. The balance is $2,850.

If he takes that $950 by card, the cost at Stripe's standard US rate at the time of writing (2.9% + 30¢) is $27.85. If he later refunds it, Stripe says its original processing fees aren't returned, so a refund leaves him that much out of pocket. Decide who bears that cost and say so in your terms.

Now look at the same job in California.

Legal limits to check first

This section is general information, not legal advice. Check the rules for your state or country and your trade.

California's Contractors State License Board says the down payment on a home improvement job cannot be more than $1,000 or 10 percent of the contract price, whichever is less, and that special-order materials are no exception. The board notes an exception for contractors with blanket performance bonds, so check its page if that's you.

So the plumber's $950 deposit would be over the limit there if the job falls under those rules. He'd take $380 and structure the rest as a written payment schedule. That's one state, and the FTC notes that some states limit down payments, so look up yours before you put a percentage on your quote.

Two more rules are worth knowing:

• US cooling-off rule. The FTC's Cooling-Off Rule gives buyers until midnight of the third business day to cancel certain sales made at their home for a full refund, and a covered seller has 10 days to give the money back. It doesn't cover repairs and maintenance the customer asked you to come out for, or emergencies. Anything you sell beyond what they called you for can be covered.
• UK off-premises sales. Under the Consumer Contracts Regulations 2013, the cancellation period on a service contract generally ends 14 days after the contract is made. For a contract made away from your business premises, you shouldn't start before then unless the customer has expressly asked you to, on a durable medium such as an email.

Wording to copy

When you send the quote:

The total for the job is $3,800. To book your start date of March 3, I take a 25% deposit of $950, which covers materials and holds the days for you. The balance of $2,850 is due when the work is finished. Pay the deposit here: [link].

By text, after they've said yes:

Great, thanks Marcus. To lock in March 3, the deposit is $950. Pay here: [link]. Your date is held once that's in. Any questions, just call me.

A nudge if they said yes but haven't paid:

Hi Marcus, I'm holding March 3 for you, but I'll need the $950 deposit by Friday to keep it, as I've got materials to order. Here's the link again: [link].

If a customer pushes back:

I understand. The deposit goes on materials for your job and keeps those days free for you. It comes off the final bill, so it isn't an extra cost.

That last sentence does a lot of work. People often hear "deposit" as a fee on top. Say clearly that it's part of the total.

Refund terms that hold up

Write these on the quote, before any money moves. A customer who has seen the terms is much less likely to argue, and a card dispute is much easier to answer.

If you cancel more than 7 days before the start date, I'll refund your deposit minus any materials already bought for your job, which you can then keep. If you cancel within 7 days, I'll also keep $300 to cover the days I've held. If I have to cancel, you get the whole deposit back.

A version for event and booking businesses:

Your $200 deposit holds the date. If you cancel 30 days or more ahead, it's refunded in full. After that, it's refunded only if we can rebook the date.

Be careful with "non-refundable". In the UK, government guidance on cancelling goods or services says non-refundable deposits should only be a small percentage of the total price, that a business can only keep one if the term is fair, and that it's generally limited to covering its actual losses. Being in the contract isn't enough on its own. In the US, deposit rules are mostly state law, and the amount you can keep will often turn on what you actually lost.

Good habit: tie what you keep to real costs. "$300 for the days held" is easier to defend than "deposits are non-refundable". Then try to refill the date, and if you do, give some or all of it back.

Common mistakes

• Asking only by voice. Put the amount and the date in writing the same day.
• Starting before it lands. If you buy materials on a promise, you've given up the reason for taking a deposit.
• Forgetting it on the final invoice. Show it as a line and show the balance due.
• Calling it a booking fee. If it comes off the total, it's a deposit. Say that.
• Treating all customers the same. You may waive it for a long-standing account. Do so on purpose, and keep it for anyone new, or anyone who has paid you late before.
• Using a percentage you never checked. A cap you didn't know about still applies to you.

A deposit is easiest to collect at the moment of yes, so it helps if accepting and paying are one step. The quote template in Programmable Page has an Accept button with an optional deposit, and there's a deposit request page showing the job, the total, what's due now and the balance. Both need your Stripe account connected to take the money. If you're unsure which to send, start with quote or estimate.

Questions

What percentage should a deposit be?

There's no single right figure. Base it on the materials you'll buy and what a cancellation would cost you, then check local limits. In California, home improvement down payments are capped at $1,000 or 10 percent, whichever is less.

Is a deposit refundable?

It depends on what you agreed and on local law. Write the terms before you take the money. In the UK, a business can generally keep only enough to cover actual losses, and the term must be fair.

Should I take a deposit from every customer?

Not necessarily. Deposits matter most when you buy materials in advance, hold time for someone or work with a new customer. Small call-outs and long-standing accounts may not need one.

How do I show a deposit on the final invoice?

List the full job total, then a line for the deposit with the date you received it, then the balance due. That way the customer sees that it came off the price.