How this calculator works
A deposit is not a gesture of good faith. It is the money that protects you between accepting a custom order and being paid for it — the point at which you have bought bespoke materials, spent hours on design, and possibly paid a subcontractor.
Most makers take 50% out of habit. This works out what your actual exposure is, so you can set the deposit against the real number.
The formula
- Deposit = quote total × deposit %
- Non-recoverable = (materials × non-recoverable share) + design time cost + subcontracted work
- Minimum deposit % = non-recoverable ÷ quote total
- Exposure = non-recoverable − deposit
What to watch for
- The right deposit is whatever covers what you cannot get back. On a heavily personalised order that can be well above 50%; on a job that is mostly your own labour late in the process it can be less.
- Personalised materials are usually a total loss — a name and a date cannot go back on the shelf. Plain stock often can, which is what the non-recoverable share is for.
- Design time spent before production is real exposure. If a customer cancels after approving artwork, those hours are gone.
- A deposit is not the same as a cancellation policy. The deposit protects your outlay; the policy sets out what happens next. Put both in writing before starting.
Common mistakes
- Taking 50% by default without checking what the order actually commits you to.
- Starting design work before the deposit clears.
- Treating all materials as recoverable when the customer’s name is engraved on them.
- Leaving the deposit terms verbal, which makes them unenforceable when it matters.
Frequently asked questions
How much deposit should I take on a custom order?
Enough to cover everything you spend before the balance arrives: bespoke materials you could not resell, design and setup time, and any subcontracted work. On heavily personalised jobs that is often 50% to 70%; on orders where most of your cost is labour applied late, it can be lower. The calculator gives you the minimum figure.
Should deposits be refundable?
The point of a deposit is that it is not — otherwise it protects nothing. Common practice is to make it non-refundable once design work begins, and to say so plainly in the quote the customer accepts. Consumer protection rules vary by jurisdiction, so check what applies where you trade.
When should I start work on a custom order?
After the deposit has cleared and the artwork has been approved in writing, not before. Starting on a verbal go-ahead is how makers end up holding personalised stock for an order that never happens, with no deposit to offset it.
What if the customer cancels partway through?
The deposit should already cover your committed spend, which is the whole point of sizing it against your exposure rather than by habit. Beyond that, your terms should state whether further work completed is chargeable. Agreeing this in the quote is far easier than negotiating it after a cancellation.