Bakery deposit policy: how much deposit to ask for
Short answer: ask for at least what a late cancellation would cost you: the ingredients, packaging and supplies you buy for the order, plus any time you could not sell to someone else. Write the amount, the date it is due and what happens if the order is cancelled in a short policy, and share it before you confirm the order. Bakery Order Tracker suggests 50% of the order total by default.
A deposit does two jobs: it holds the date in your calendar, and it covers what you spend before the customer picks up. A simple way to choose the percentage is to look at one of your own orders.
Work out what a cancellation would cost
Fictional example: a custom cake sold for 120.00. From the cake pricing calculator example, its ingredients cost 18.50, other costs 2.00 and the board and box 3.20, so 23.70 is spent on materials before the cake is made. That is about 20% of the price. The other big cost is 3.5 hours of your time.
| Deposit | Amount on 120.00 | What it covers if the order is cancelled late |
|---|---|---|
| 25% | 30.00 | The 23.70 of materials, with 6.30 to spare |
| 50% | 60.00 | The materials and 36.30 of the 42.00 of time |
| 100% | 120.00 | The whole order, paid in advance |
With low material costs, a smaller deposit can be enough. With expensive ingredients, special supplies or a date you turned other orders away for, a bigger one protects you. Your choice is a business decision: the numbers only show what each option covers.
What other small bakeries publish
Of 19 small US bakery websites read on November 6, 2026, six publish a 50% deposit: four on every custom order, one on orders over US$100 and one on orders larger than a dozen cupcakes. One takes full payment upfront to buy supplies, and one asks 30% for weddings. Several also set a minimum order, most often one dozen. Details in published bakery prices.
What a deposit policy should say
- How much the deposit is, as a percentage or an amount, and when it is due.
- That the order is confirmed only once the deposit arrives.
- When the balance is due: at pickup or a set number of days before.
- Until when changes to flavors, size or design are possible.
- What happens if the customer cancels, early or late.
- Pickup: the time window, and what happens if nobody comes.
Sample deposit and cancellation policy
Sample wording to adapt. Replace everything in brackets with your own choices. It is an example, not legal advice: check the consumer and cottage food rules where you sell.
The balance is due [at pickup / X days before pickup].
Changes to flavor, size or design are possible until [7] days before pickup.
If you cancel more than [14] days before pickup, the deposit can be [moved to a new date once / refunded minus costs already spent].
If you cancel later, the deposit is not refunded, because ingredients and time have already been committed.
Please pick up your order within [30 minutes] of your pickup time.
Card fees on deposits
If the deposit and the balance are paid separately by card, the fixed part of the payment fee is charged twice. With 4% + 0.30 per payment, two payments on a 120.00 order cost 5.40 in fees instead of 5.10. It is small, but check that your price covers the way customers actually pay.
Keep track of every deposit
For each order, write down the total, the deposit asked, what has been paid and the balance, so nothing is left uncollected at pickup. The guide on tracking orders and deposits shows a simple system, and the free bakery order form has lines for the deposit and the balance.
See every deposit and balance at a glance
Bakery Order Tracker works out the suggested deposit and the balance for every order, shows a payment status such as "Deposit paid" or "Check refund", and lists the next pickups in Google Sheets.
Questions
How much deposit should I take for a custom cake?
At least what a late cancellation would cost you. In the fictional example, materials are about 20% of the price, so a 25% deposit covers them and a 50% deposit also covers most of the time. Bakery Order Tracker suggests 50% by default, and you can change it.
Should a deposit be non-refundable?
You can make it non-refundable after a set date, because ingredients and time are committed by then, or refundable minus the costs already spent. Decide your own dates, write them in the policy and share it before the customer pays. Check the consumer rules where you sell.
When should the balance be paid?
Either at pickup or a set number of days before. Paying before pickup avoids collecting money at a busy handover; paying at pickup is simpler for the customer.
Do small orders need a deposit?
If an order needs no special ingredients and you could sell it to someone else, a deposit matters less. For custom designs, large quantities or busy dates, it protects you.
Next: How to track custom orders and deposits · Free bakery order form · Cake pricing calculator