Promotion math
Pre-order deposit cash flow.
Enter units pre-ordered, the deposit you take, your supplier terms and cancellations. See net deposits, cash after you place the order, the lowest cash point and the money you must fund yourself.
Lowest cash point = net deposits - supplier deposit - supplier balance. The example below collects $18,120 net, pays the supplier $30,000, and needs $11,880 of outside funding before customer balances arrive.
Your numbers
Result
Worked example
A seller takes 1,000 pre-orders at $80.00 with a 25% deposit, so $20,000 comes in. Fees of 2.9% + $0.30 per payment cost $880 and 5% cancellations refund $1,000 of deposits, leaving $18,120. The seller orders 1,000 units at $30.00 and pays a 30% deposit of $9,000, so cash after placing the order is $9,120. The supplier balance of $21,000 falls due before customers pay their remaining 75%, so cash dips to -$11,880 and the seller must fund that. After shipping 950 units, balances of $57,000 less $1,938 of fees arrive, and cash ends at $43,182.
How it works
Net deposits = deposits collected - payment fees - refunds for cancellations. Processors often keep their fee when you refund, so the tool does not return the fee on refunded deposits.
Cash after placing the order = net deposits - supplier deposit. Deposit money is not profit: it is cash you hold against units you owe.
Lowest cash point = cash after placing the order - supplier balance. The tool assumes the supplier balance is paid before you collect the customers' balances, which is the common case and the one that causes cash crunches. If your terms differ, the number is conservative.
Cash left after shipping = cash after order + customer balances - balance fees - supplier balance. Units ordered but not pre-sold are paid for and counted as cost.
Two other things matter and are not modelled: tariffs or freight between the supplier and you, and any delay. If you cannot ship within the date you promised, the buyer may have a right to cancel and be refunded.
Sources
Retrieved 2026-10. The formulas are arithmetic on your inputs; the sources below are the rules and standards this page refers to.
- FTC Mail, Internet, or Telephone Order Merchandise Rule, 16 CFR Part 435: section 435.2 requires a reasonable basis to ship within the time stated, or within 30 days if none is stated, and, if the seller cannot, an offer to let the buyer consent to a delay or cancel and receive a prompt refund.
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FAQ
Is a pre-order deposit my money?
You hold it, but you owe the goods or a refund. Treat deposits as customer funds you may need to return, not as profit, when you plan the supplier payment.
Why does cash go negative even if the order is profitable?
Because the supplier balance is due before customers pay theirs. Profit shows up at the end; the dip in the middle is what you must fund.
What if I cannot ship on time?
In the US the FTC order rule requires you to offer the buyer a delay consent or a prompt refund without being asked. Plan for a higher cancellation rate if a delay is possible.
How much deposit should I take?
Enough that net deposits cover the supplier deposit, and ideally the supplier balance. Enter different deposit percentages to see the funding you need change.