Deposit vs. retainer: which should you ask for?
Updated 2026-06-20
Both deposits and retainers get money moving before you’ve done all the work — but they solve different problems. Asking for the wrong one (or calling one by the other’s name) confuses clients and weakens your position. Here’s how to choose.
The core difference
- A deposit is an upfront portion of a single project’s fee, paid before you start. It reduces your risk on that one job and signals the client is committed.
- A retainer is a recurring fee for ongoing work or availability — typically monthly — covering a block of hours or continued access to you.
A deposit is tied to one project; a retainer is an ongoing relationship.
Side by side
| Deposit | Retainer | |
|---|---|---|
| Scope | One project | Ongoing / monthly |
| Timing | Once, before starting | Recurring (e.g. monthly) |
| Purpose | Reduce risk, secure commitment | Predictable income & availability |
| Balance | Deducted from the final invoice | Renews each period |
When to use each
- Ask for a deposit on most new or larger one-off projects — 25–50% upfront is common. See how to ask for a deposit.
- Set up a retainer when a client needs you regularly, or you want steadier monthly cash flow. See how to set up a freelance retainer.
They’re not mutually exclusive — a deposit protects a project, a retainer smooths your income across months.
Put it in the agreement
Whichever you use, write it into the contract: the amount, when it’s due, what it covers, and whether it’s refundable. Vague terms here are where disputes start.
Bill it without the monthly admin
Retainers and staged deposits only help cash flow if they’re actually billed and collected on time, every period. Duefy issues recurring invoices on schedule and chases them automatically — so the predictable income you set up actually lands.