Down payment limit calculator

Type the home improvement contract price. You get the largest down payment the law allows, step by step.

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Answer: $1,000

The rule: a home improvement down payment may not be more than $1,000 or 10% of the contract price, whichever is less (BPC §7159.5(a)(3)).
10% of $25,000 = $2,500.
The smaller of $1,000 and $2,500 is $1,000.
Answer: $1,000.

Exam-practice math only. It is not legal or business advice about a real contract or job.

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The rule

A home improvement down payment may not exceed $1,000 or 10% of the contract price, whichever is less.[1]

Sources

California Contractors License Law & Reference Book, 2026 Edition (CSLB), 387; BPC §7159.5(a)(3), p. 387 (read November 13, 2026)

Reviewed November 13, 2026. Published by ContratistaListo. The sources above are the authority. This is a summary in our own words: check the source before you act on it.