ContractorHandbook

Draw Schedule for a $50,000 Job

Each progress draw

$10,000.00

10% deposit at signing, four equal progress draws, 10% final payment at completion, no retainage held.

It does not stop at a number.

When the figures look right, the payment schedule downloads as a real PDF with your business details on it, built inside your own browser. Nothing you type is uploaded anywhere.

Contractdraw 1draw 2draw 3draw 4signing to completioncontract, less deposit and final, split evenly across the draws
A draw schedule is cash flow written down before the job starts. Deposit and final come off the top, the rest splits evenly across the milestones, and retainage comes out of each draw rather than the end.

How that number is worked out

These are the figures this page was built with and every line the calculator produces from them. Change anything above and all of it moves.

  • Contract amount50000 $
  • Deposit at signing10 %
  • Number of progress draws after the deposit4
  • Final payment at completion10 %
  • Retainage held from each draw0 %

Each progress draw$10,000.00

Deposit at signing$5,000.0010%
Draw 1$10,000.00cumulative $15,000.00, 30% of contract
Draw 2$10,000.00cumulative $25,000.00, 50% of contract
Draw 3$10,000.00cumulative $35,000.00, 70% of contract
Draw 4$10,000.00cumulative $45,000.00, 90% of contract
Final payment at completion$5,000.0010%

The draw schedule this produces

Deposit at signing1
Progress draw 11
Progress draw 21
Progress draw 31
Progress draw 41
Final payment at completion1

Number of progress draws compared

More draws means smaller amounts more often, which is usually easier to collect and always easier to survive.

Number of progress drawsEach progress draw
2 draws$20,000.00
3 draws$13,333.33
4 draws$10,000.00
5 draws$8,000.00
6 draws$6,666.67

What else matters here

Five thousand at signing, four draws of $10,000, and $5,000 on completion. That is a standard shape for a $50,000 remodel and it keeps you no more than one draw out of pocket at any point.

Tie each of those four draws to something visible. Demolition complete, rough in inspection passed, drywall finished, fixtures set. A customer can dispute whether a job is 50 percent done. Nobody disputes whether an inspection was passed.

The deposit should cover the material you have to buy before the first draw, not your profit. If the first material order on this job is $8,000, a $5,000 deposit already has you funding the job on day one.

What this calculator assumes

  • Several states cap the deposit a residential contractor may take, some at 10 percent and some at a flat dollar figure. Check your own state before you write a bigger number here.
  • Draws should follow milestones you can point at, not dates. "On completion of rough in inspection" is collectable. "On 15 October" is an argument.
  • A final payment under 10 percent gives the customer no reason to sign off, and one over 20 leaves you funding their job.

Questions people ask

What is a normal draw schedule for a $50,000 job?

A 10 percent deposit of $5,000, four progress draws of $10,000 each, and a $5,000 final payment at completion.

Should draws be on dates or on milestones?

Milestones you can point at. On completion of rough in inspection is collectable because either the inspection happened or it did not. On 15 October is an argument, because the customer will say the work is not where it should be and they will sometimes be right.

Is a 10 percent deposit allowed?

Usually, but several states cap what a residential contractor may take up front, some at 10 percent and some at a flat dollar figure. Check your own state before writing a bigger number, because an over the cap deposit can be a license issue rather than just a contract dispute.

Different numbers?

The payment schedule calculator takes any dimensions you like and hands back the same list.

Other common sizes