Contractor Payment Schedule Calculator
Enter your contract value and deposit to get a milestone draw schedule — plus the one figure most guides leave out: how far ahead of the completed work your payments run at each stage.
The Number Nobody Gives You: How Far Ahead Your Money Is
Every payment guide tells you what a normal deposit looks like. Almost none of them tell you the thing that actually matters while a job is running: at each milestone, how much have you paid compared with how much work has genuinely been completed? That gap is your exposure. If the contractor walks, stops, or does the finish work badly, it is the amount you cannot get back without a lawsuit.
The reason the gap opens up is that payment schedules and work value do not follow the same curve. Demolition and rough-in feel like half the project because they take half the calendar, but they are usually only about a quarter to a third of the contract value. Finish work — cabinets, tile, fixtures, trim, paint — is where the money is. A schedule that pays out evenly across the calendar therefore runs ahead of the work through the entire middle of the job.
The table above shows both curves side by side. The "Ahead by" column is the number to watch. Keeping it small is the entire point of a milestone schedule.
Deposit Norms by Job Size
| Contract value | Typical deposit | Why |
|---|---|---|
| Under $5,000 | 0–50%, or none | Often two payments total; materials are a large share of a small job |
| $5,000–25,000 | 10–30% | Covers mobilization, permits, and material deposits |
| $25,000–100,000 | 10–20% | Progress draws carry the rest |
| Over $100,000 | 10% or less | Established contractors have credit lines for materials |
Notice the direction: the deposit percentage falls as the job gets bigger. A 50% deposit on a $4,000 fence is unremarkable. The same percentage on a $60,000 remodel is well above market norms, and in states with deposit caps it is not legal for home improvement work.
One legitimate exception cuts across all of this. Custom or non-returnable orders — made-to-measure cabinets, a special-order tile run, custom windows — are normally paid for in full when they are ordered, because the contractor cannot resell them if you cancel. That payment should be itemised as a material deposit for those specific items rather than folded into a larger percentage of the whole contract.
State Deposit Caps
At least nine states limit what a home improvement contractor can collect before work begins, and the caps differ enough to matter. The strictest common rule is 10% of the contract price or $1,000, whichever is less — which on a $40,000 kitchen means a legal maximum deposit of $1,000, not $4,000. Other states draw the line at one third. Many have no cap at all.
These rules generally apply to residential home improvement contracts rather than to new construction, and the definitions vary. Check your own state's contractor licensing board before treating a number as illegal rather than merely unusual. The calculator flags the request against whichever rule you select, which is a starting point for that conversation, not legal advice.
What Each Payment Should Be Tied To
A milestone is only useful if it is verifiable. "50% at halfway" is not a milestone; it is a date. Tie each draw to something you can stand in the room and confirm:
- Rough-in complete — framing, plumbing, and electrical installed and, ideally, inspected before drywall covers it. This is the last moment you can see the expensive hidden work.
- Substrate and waterproofing — in a bathroom, before any tile goes on. Photograph it.
- Major items installed — cabinets hung, countertops set, fixtures operational.
- Substantial completion — everything done except the punch list.
- Final payment — punch list cleared and final inspection passed. Keep 5–10% here. A final payment small enough to walk away from is a final payment that does not get the punch list finished.
Two habits protect the schedule more than the percentages do. Pay by check or card, never cash, so there is a record and a dispute path. And ask for a conditional lien waiver with each payment, which is a signed acknowledgement that the contractor and their suppliers have been paid for that phase. Without it, a subcontractor your contractor failed to pay can place a lien on your house even though you paid in full.
Red Flags in a Payment Request
- 50% or more upfront on a job over $10,000. The most common single warning sign. A contractor with a working credit line does not need it.
- Cash only, or a discount for cash. No paper trail, no chargeback, no recourse.
- Payment dates instead of payment milestones. "Second payment on the 15th" pays for the calendar, not for work.
- A draw requested before the previous phase passed inspection. Getting ahead once tends to become a pattern.
- No written contract, or verbal changes to the schedule. If it is not in writing it does not exist.
- Change orders handled informally. Every change should be its own written amount, agreed before the work happens, not settled at the end.
Frequently Asked Questions
How much should I pay a contractor upfront?
It depends mostly on the size of the job, and the percentage falls as the job grows. Under $5,000 a deposit of anywhere from nothing to half is normal because materials are a large share of a small job. Between $5,000 and $25,000, expect 10 to 30 percent. Above $25,000, 10 to 20 percent is typical, and above $100,000 a deposit of 10 percent or less is standard because established contractors carry credit lines for materials.
Is a 50% deposit normal?
On a small job, often yes, especially where materials dominate the price. On a project over about $10,000 it is well above market norms and is worth questioning. In states that cap home improvement deposits it may not be legal at all. The concern is not the contractor's honesty so much as their capitalisation: a business that needs half the money before starting may be funding a previous job with your deposit.
What is a draw schedule?
A draw schedule breaks the contract into payments released as verifiable phases finish, rather than on fixed dates. A typical kitchen might run deposit at signing, a draw when demolition and rough-in are complete and inspected, another when cabinets are installed, another at countertops and fixtures, and a final payment once the punch list is cleared. The point is that each payment is tied to something you can inspect before you release the money.
Why does my payment run ahead of the work in the middle of a project?
Because payment schedules and work value follow different curves. Demolition and rough-in occupy roughly half the calendar but usually only a quarter to a third of the contract value, while finish work such as cabinets, tile, fixtures, and trim carries most of the cost. A schedule spread evenly across the timeline will therefore pay out faster than value is created through the whole middle of the job, which is exactly where the overpayment gap peaks.
How much should the final payment be?
Five to ten percent of the contract, held until the punch list is complete and any final inspection has passed. The final payment is your only remaining leverage on the small defects that are easiest to leave unfinished, so a final payment small enough that the contractor can walk away from it will not get the punch list done. Some states also require a lien waiver before final payment, which is worth asking for regardless.