How Much Deposit Should I Ask For?

Start from your upfront costs

The cleanest way to set a deposit is to add up what you have to spend before the customer pays the balance. Count materials, sub-contractor fees, equipment hire, permits and any travel. If a $4,000 job needs $1,200 of materials ordered before you start, a deposit below that leaves you funding the customer's project out of your own pocket.

Once you know your committed costs, set the deposit to cover them with a little headroom. This keeps the logic defensible: you are not pulling a number from the air, you are matching the money you genuinely have to lay out. That reasoning also helps if a customer ever queries the figure, and it keeps you clear of unfair-term concerns.

Typical ranges by industry

Different trades have settled on different norms, and customers tend to accept what is normal for the work:

• Trades and home services: often 10%–30%, higher when materials are ordered specially.
• Creative and digital work: commonly 30%–50% up front, with the balance on delivery.
• Events, weddings and hospitality: frequently 25%–50% to lock in the date.
• Custom manufacturing: 50% or more, because the item cannot be resold.

These are conventions, not rules. If your costs justify more or less, set it accordingly and explain why. The key is that the figure feels proportionate to the work and the risk you carry.

Percentage or flat fee?

A percentage scales naturally with the size of the job, which is why it suits variable work like building or design. A flat deposit suits standardised services where the upfront cost is roughly the same every time — say a fixed booking fee for a photo shoot or a service call.

Whichever you choose, show the actual dollar amount on your quote so the customer is not doing maths in their head. "30% deposit ($1,200) to confirm your booking" is far clearer than "30% deposit" alone. For larger jobs you may prefer to break payment into stages rather than one big deposit — see how to invoice for a large project.

Don't overreach

It is tempting to ask for as much as possible up front, but a deposit that is too large can cost you the job and can fall foul of Australian Consumer Law if it looks like a penalty rather than a genuine pre-payment. A customer who pays 90% before you have done anything is carrying all the risk, and they know it.

A good test: would the deposit cover your loss if the job fell through tomorrow, without leaving you holding the customer's money for no reason? If the answer is yes, you are in the right zone. If you find yourself justifying a very high deposit, consider milestone payments instead, which spread the money fairly across the work. See what milestone payments are.

Adjust for risk

Not every customer carries the same risk. A repeat client who always pays on time might warrant a smaller deposit, while a brand-new customer on a large first job justifies more protection. You are allowed to vary your deposit by situation, as long as you set it before the work starts and disclose it clearly.

If a new customer pushes back hard on any deposit at all, treat that as information. Plenty of slow-payer problems start with a customer who resisted putting any money down. A modest deposit is a low-cost way to test whether someone is genuinely willing to pay, before you commit real time and materials to their job.