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Translation service Customer Deposit Gap: worked example

Estimate the pre-completion cash gap after a customer deposit.

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Translation service / translation job economics
Answer

With the illustrative inputs below, the result is 1,200 .

Try this with your own numbers

Formula and worked example

Funding gap = early cash cost − quote × deposit rate

Example figures
InputExample
Cash needed before customer balance payment3,000
Total customer quote6,000
Deposit rate30 %
Calculated result1,200

Choose reliable inputs

Include software licences, delivery time, revisions and ongoing support when costing a project. For this translation service calculation, use project time logs, licence invoices and retainer scopes and a consistent definition of one translation job.

  • Translator time: include the portion belonging to this translation job or reporting period, and record where the value came from.
  • Review: include the portion belonging to this translation job or reporting period, and record where the value came from.
  • Formatting: include the portion belonging to this translation job or reporting period, and record where the value came from.

Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.

Does a deposit cover the project cash requirement?

Compare the deposit with cash due before the final customer payment, rather than with total project cost alone.

Deposit permissions and contract terms must be determined separately; no legal entitlement is implied.

Compare a different assumption

What if this input changes?

If cash needed before customer balance payment rises by 10%, this example changes by 300 . This shows the effect of one change; it does not predict what will happen.

Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.

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