A deposit is a partial payment you collect from a client before starting work on a project. Typically 25-50% of the total cost, it serves as a commitment that the client is serious about moving forward. For freelancers, deposits are one of the most effective tools for protecting against non-payment and improving cash flow.
How it works
After a client approves your proposal, you send a deposit invoice for a percentage of the total. Work does not begin until the deposit clears. Once you deliver the final work, you invoice for the remaining balance.
For larger projects, you might break payments into three stages — 40% deposit, 30% at a midpoint milestone, and 30% on delivery. This keeps cash flowing throughout the project rather than concentrating it at the start and end.
How much to charge
| Project size | Recommended deposit | Why |
|---|---|---|
| Under $2,000 | 50-100% upfront | Small projects carry high risk relative to effort |
| $2,000-$10,000 | 50% upfront | Standard split that balances risk for both sides |
| $10,000-$25,000 | 30-50% upfront | Even 30% provides meaningful security at this size |
| Over $25,000 | 25-40% upfront, with milestones | Multiple payments keep cash flowing |
For detailed strategy on structuring deposits, read our freelance deposit guide.
Why it matters for freelancers
Deposits protect you from the worst-case scenario: doing the work and never getting paid. When a client pays nothing upfront and ghosts after delivery, you have lost both the work and the income.
But deposits do more than reduce risk. They qualify your clients. A client who pushes back hard against any upfront payment is often the same client who will drag their feet on the final invoice. The deposit acts as a filter — serious clients expect to pay one, and problematic clients reveal themselves early.
Deposits also improve cash flow timing. Without one, you might work for two weeks, deliver, then wait 30 days under net 30 terms. That is six weeks from start to first dollar. With a 50% deposit, you have money in your account before you open the project file.
Example
You are a freelance web developer quoting $12,000 for a custom e-commerce site:
Payment schedule:
- 50% deposit ($6,000) — due before work begins
- 25% milestone ($3,000) — due upon design approval
- 25% balance ($3,000) — due on launch, net 15
You send the deposit invoice on March 1. The client pays March 3. Work starts March 4. Design wraps March 20, and you invoice the milestone. Final delivery is April 10, and you invoice the balance.
By structuring it this way, you collected $9,000 before the project was finished. If the client disappears after design approval, you are out $3,000 — not $12,000.
Common mistakes
Not requiring a deposit at all. Professional clients expect deposits. If you are unsure how to ask, frame it simply: “I require a 50% deposit to secure your spot on my schedule.”
Starting work before the deposit clears. Do not start designing, coding, or even doing preliminary research until the payment has actually landed in your account.
Making the deposit too small. A 10% deposit on a $5,000 project is $500 — barely enough to cover reviewing the brief. For most projects, 50% is standard, and anything below 25% offers weak protection.
Not putting deposit terms in the contract. Specify the amount, when it is due, whether it is refundable, and what happens if it is not paid. Our freelance contract essentials guide covers the key clauses.
Treating the deposit as refundable by default. Decide your refund policy upfront and put it in writing. Many freelancers make deposits non-refundable once work has begun.
FAQ
Should I charge a deposit for every project? Yes. Even for small projects, even for repeat clients. The only exception might be a long-standing retainer client with an established monthly billing relationship. For everyone else, a deposit protects both parties and sets a professional tone.
What if a client refuses to pay a deposit? This is a red flag. A legitimate client will not balk at a standard deposit. You can offer a compromise (25% with a milestone midway), but do not drop it to zero. A client who will not commit money upfront is a client you are likely to chase for payment later.
Is a deposit the same as a retainer? No. A deposit is a one-time payment applied toward a specific project total. A retainer is a recurring fee for ongoing access to your services. GetPaidFirst handles both — collect deposits on project proposals and set up recurring invoicing for retainer clients — so your billing matches whatever the engagement requires.