Project Deposit & Cash Gap Calculator

How project cash funding is calculated

The model starts with the cash you assign to the project and adds receipts or subtracts expenses on their scheduled dates. The largest shortfall below zero is the modeled cash gap. A job can finish with a profit and still have a gap earlier in its schedule.

Running cash = starting cash + receipts to date − payments to date

The deposit scenario keeps the contract value fixed. Increasing the deposit reduces the unpaid remainder, so percentage-based later receipts must be recalculated from that smaller remainder. The minimum deposit is tested against the entire schedule, not just the first expense.

The SBA's business planning guidance covers planning costs and financial projections. This tool uses your dates and amounts; it does not predict whether a customer will pay on time.

Worked example: a profitable job with a $150 cash gap

Consider a $1,000 contract, no starting project cash and $900 of costs. The customer pays a 30% deposit. The remaining $700 is collected in two equal payments, each before the next expense shown below.

The job earns $100 in this example, but the business supplies up to $150 before the final receipt. A 60% deposit removes the modeled gap: collect $600 at the start and split the remaining $400 into two $200 receipts. The running balances become $200, $0 and $100. Collecting more upfront does not increase the total contract revenue. Cent rounding can make the exact minimum a cent lower than this rounded illustration.

Project funding questions

Why can't I just add the shortfall to the deposit?

If later milestones are shares of the unpaid contract balance, a larger deposit makes those later receipts smaller. The model must recalculate every stage to find a deposit that covers the schedule.

Does a larger deposit improve the job's profit?

It changes collection timing, not the total contract value or the entered costs. The quoted profit and the cash needed to deliver the work are different results.

What if costs are due before the deposit arrives?

Set the project start to the earliest cash outlay. This model puts the initial deposit on that start date. To model a deposit arriving later, use a 0% initial deposit and enter that receipt as a share of the remaining balance on its expected date. The minimum-deposit result then shows what would be needed at the start instead; it does not move a late payment.

Where should I estimate the contract price and job costs?

Use the Job Quote & Cost Overrun calculator for the itemized estimate, contingency and target margin. Check the cash schedule against expected payments rather than treating noncash cost allocations as extra expenses.