The formula
Total cost = Σ per leg: (Leg × (%Fee + FX margin) ÷ 100 + Flat fee)
Percentage costs are split-invariant — 2.5% of a deposit plus 2.5% of the balance equals 2.5% of the invoice. Flat fees are not: every additional leg adds another flat fee, which is why heavily milestone-split orders quietly cost more to settle.
The second-order cost is rate movement between legs. A 30/70 order with a six-week production lead leaves 70% of the invoice exposed to the rate for six weeks. Rate-lock quotes on the balance leg, where available, convert that exposure into a known number.
How to use this calculator
- 1
Enter the invoice and split
30/70 is the manufacturing standard; 50/50 appears for smaller orders and newer relationships.
- 2
Add per-leg pricing
Your provider’s percentage fee, flat fee and FX margin — the same inputs you validated with the Transfer Cost Calculator.
- 3
Review both legs’ costs
Confirm the total payment cost fits the order’s margin and the deposit timing fits your cash cycle.
- 4
Plan the balance leg’s rate risk
Decide now whether to lock the balance rate or accept the movement — six weeks of drift on 70% of a large invoice is a real position.
What triggers the balance payment — and why it matters
The balance trigger is the most negotiated clause in supplier terms. "Balance before shipment" favours the factory: you pay before goods leave their control. "Balance against copy of bill of lading" is the common middle ground: goods are on the vessel, documents prove it. "Balance against inspection report" adds a quality gate before the money moves.
Each step toward buyer protection costs negotiating capital and sometimes price. New relationships should spend that capital; long relationships with clean history can relax it. What should never be negotiable is documentation: every leg tied to a named document, so a dispute is about facts rather than recollections.
When to upgrade to escrow-workflow structures
Deposit-and-balance is trust-splitting, not trust-removal: your deposit is still an unsecured advance to the factory. For first orders, large orders relative to your balance sheet, or suppliers you could not visit, an escrow-workflow structure — funds held and released against agreed evidence, where eligible — reduces the unsecured window materially.
The economics are calculable: escrow-workflow fees against the deposit you would otherwise put at risk. Our escrow fee tool models the structure, and the Academy comparison of letters of credit versus escrow covers when each instrument fits. For verified, scored suppliers, deposit-and-balance usually suffices; the structure should match the counterparty risk, not a habit.
Common use cases
Order cash planning
Know the exact outlay and timing of both legs before confirming a production slot.
Terms negotiation
Quantify what moving from 50/50 to 30/70 does to your exposure window and cash cycle.
Provider comparison
Price both legs under two providers’ fee structures and compare full-order settlement cost.
Rate-lock decisions
Size the balance leg’s FX exposure to decide whether locking the rate is worth it.
Automate this with the API
Turn the same numbers into a dated deposit/balance payment plan.
curl "https://keybs.io/api/v1/tools/payment-plan?value=30000&deposit_pct=30&lead_weeks=4&ship_weeks=6" \ -H "x-api-key: YOUR_FREE_KEY"Free Tools API docs and key registration
Frequently asked questions
What deposit percentage is standard?
30% deposit / 70% balance is the manufacturing default across most sourcing markets. Custom tooling or heavily customised goods push deposits toward 50%; strong ongoing relationships pull them down, sometimes to zero against documents. Everything is negotiable with order history.
Should both legs use the same provider?
Usually yes — consistency simplifies documentation and often earns volume pricing. But price both legs independently at least once a year; the calculator makes a two-provider comparison trivial.
How do I protect the balance leg from rate movement?
Rate-lock quotes, where available, hold the rate for a validity window so the balance amount in your currency is known from day one. Alternatively, hold the supplier’s currency from the deposit date — you have converted once, at one known rate, for the whole order.
What documents should trigger the balance?
Minimum: commercial invoice and transport document (bill of lading or airway bill). Better: add a packing list and, for quality-sensitive goods, a third-party inspection report. Name the documents in the purchase order so the trigger is contractual.
Is paying the deposit in the supplier’s currency better?
Often — suppliers quoting in USD typically pad the price for their own conversion cost and rate risk. A CNY-settled quote can price lower, with the conversion happening on your side at a disclosed rate. Ask for dual quotes and compare them with the exchange-rate tools here.
How does KeyBS Pay handle supplier payments?
Quote-first on each leg — executable rate, disclosed fee (from 1.5%, route-dependent), committed receive amount — with supplier verification and TradeScore context before you pay, and escrow-workflow structures where eligible. The full order settles with documentation you can hand to your accountant or your clearing agent.
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