How to use the milestone payment schedule calculator
- Enter the total project fee.
- List each milestone with a name, a share of the fee and a short note on when it is due, such as on signing or on delivery.
- Add more milestones with Add a milestone until the shares add up to exactly 100%.
- Read the amount due at each step and the running total paid.
Formula
Payment for a milestone = total fee x share / 100
Paid to date = sum of the payments up to and including that milestone
The shares must add up to exactly 100%
Payments add up to the total fee exactly
Payments are taken to whole cents. Leftover cents go one at a time to the milestones with the largest fractional cent.
A $12,000 project in three payments
A $12,000 project is paid 30% on signing, 40% when the draft is approved and 30% on delivery. The payments are $3,600, $4,800 and $3,600, and the amount paid to date after each is $3,600, $8,400 and $12,000.
For a $100 fee split 33.33%, 33.33% and 33.34%, the payments are $33.33, $33.33 and $33.34. If the shares added up to 90% instead of 100%, the tool would ask you to fix them before showing a schedule.
Planning a milestone schedule
Splitting a fee across milestones protects both sides. The client pays as they see progress, and the person doing the work is paid along the way instead of at the end. A deposit up front is a common first milestone, but the shares in this tool are examples you can change to match your own agreement.
Tie each milestone to something the client can check, such as an approved draft or a delivered file, so there is no argument about when a payment is due.
Where the contract comes in
The percentages only describe the split. Payment terms, late fees, what happens if a milestone is rejected and who owns the work belong in your written contract, and the tool does not know what your contract says or what your state requires.
Turn each payment into a bill with the invoice generator, price the whole project with the project quote calculator, plan a recurring arrangement with the retainer fee calculator, or check your rate with the freelance rate calculator.
Assumptions and limits
- The shares are percentages of the total fee and add up to exactly 100%.
- Milestones are paid in the order listed.
- The due note is free text for your reference and is not used in any calculation.
- Taxes, late fees and refunds are not modeled.
Frequently asked questions
How do I split a project fee into milestone payments?
Enter the fee, add each milestone with its percent and make sure the shares total 100%. The tool shows each payment and the running total.
Why must the percentages add up to exactly 100%?
So that the payments add up to the full fee. If the total is off, the tool tells you by how much so you can adjust.
Can I add a deposit as the first milestone?
Yes. Make the first milestone a deposit with whatever share you agreed, and list it first so the running total starts there.
Are the payments rounded?
They are taken to whole cents, with leftover cents handed out so the payments sum to the fee exactly.