A deposit invoice bills an upfront portion of a project's total — typically 25–50% — before work begins. It must show the full project value, the deposit percentage and amount due now, how and when the balance will be invoiced, and whether the deposit is refundable. The final invoice then credits the deposit against the total. Deposits received are unearned revenue until the work is performed.
Deposit Invoice Template
Reviewed by the Agiled editorial teamUpdated June 2026
A deposit invoice answers three questions the client will otherwise ask later: how much is the whole project, how much of it am I paying now, and what happens to this money if things change? This template shows the project total, the deposit percentage and amount due, the balance schedule, and the refund terms — so the deposit reads as the first step of a documented plan rather than a leap of faith. Download it in PDF, Word, Excel, Google Docs, or Google Sheets, or generate a pre-filled version below.
Part of our free invoice template library — 80+ industry-specific templates in PDF, Word, Excel, Google Docs, and Google Sheets.
Your Company Name
123 Business St, City, State 12345
billing@yourcompany.com
INVOICE
INV-0001
Bill to
Client Company
Due
Net 30
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Project deposit (50%) | 1 | $2,500.00 | $2,500.00 |
| Reservation fee | 1 | $200.00 | $200.00 |
Download this invoice template
Pick a style, choose a format, and download — generated locally in your browser.
Style
Format
Fixed layout for sending and printing
Word
Editable in Word or Google Docs
Excel
Live formulas for recurring invoices
Or create and send invoices online
Create online- Typical deposit
- 25–50% of project total; 50% is the freelance/trades norm
- When to send
- After the agreement is signed, before any work or materials
- On the final invoice
- Show total, deposit credited with date, balance due
- Accounting
- Unearned revenue (a liability) until the work is delivered
What to include on a deposit invoice
Full project value
Show the total contract amount even though only part is due. A deposit invoice that hides the total reads like a quote, not a commitment.
Deposit percentage and amount due now
"Deposit: 50% of $8,400 = $4,200" — the math visible on one line. Percentage-only or amount-only invites recalculation disputes.
What the deposit secures
Start date, materials order, calendar hold — name the thing. It justifies non-refundability and triggers your obligation once paid.
Balance schedule
When and how the rest is billed: "balance invoiced on completion, Net 7" or a milestone schedule. The client should never wonder what payment comes next.
Refund terms
Refundable until work starts? Non-refundable after materials are ordered? State it on the invoice — the contract clause nobody re-reads won't help mid-dispute.
Reference to the underlying agreement
Quote or contract number ties the deposit to its scope, so additions later can't be claimed as 'already covered by the deposit.'
Invoice number marking the series
Number deposit and final invoices as a pair (1042-D and 1042-F) so the project's paper trail reconciles itself.
Common deposit norms by type of work (U.S., 2026)
| Type of work | Typical deposit | Notes |
|---|---|---|
| Freelance / creative projects | 30% – 50% | 50% standard for new clients |
| Home services and trades | 10% – 33% | Several states cap contractor deposits (CA: 10% or $1,000) |
| Custom fabrication / made-to-order | 50% – 100% of materials | Often non-refundable once ordered |
| Events and catering | 25% – 50% | Date-hold deposits usually non-refundable |
| Agency / consulting engagements | 25% – 50% of first phase | Or first month prepaid |
Some U.S. states limit deposits for home-improvement contracts — California caps them at 10% or $1,000, whichever is less. Check your state before setting trade deposits.
How deposit billing actually works
Two-invoice projects: deposit, then final
The standard small-project pattern. Deposit invoice (say 50%) on signing; final invoice on delivery showing the full project total, the deposit credited with its payment date, and the balance due. The final invoice must restate the credit — a bare 'balance: $4,200' with no visible history generates the did-I-already-pay email.
Milestone projects: deposit as milestone zero
Larger projects break the balance into milestone invoices (30% deposit / 30% midpoint / 40% completion is common). The deposit invoice should print the whole schedule so every later invoice arrives expected instead of negotiated.
Materials-heavy jobs: deposit sized to the materials
Fabricators, cabinetmakers, and custom builders size the deposit to cover materials — often 50% of the job or 100% of materials cost — and mark it non-refundable once the order is placed. The invoice should say exactly that: 'deposit covers materials procurement; non-refundable after order placement on [date].'
Invoicing mistakes that cost deposit professionals money
Starting work before the deposit clears
A deposit's entire function is that work starts after it's paid. Starting early to be accommodating converts your leverage into hope. Put the start condition on the invoice: 'work begins within X days of deposit receipt.'
Vague refund terms
'Deposit non-refundable' with no context feels punitive and gets challenged. 'Non-refundable once materials are ordered / the date is reserved' is the same protection with a visible reason — and it holds up better in small-claims court.
Forgetting the credit on the final invoice
Billing the full total on the final invoice and expecting the client to remember to subtract the deposit causes overpayments, refund admin, and bad will. The final invoice always shows: total, less deposit (date), balance.
Booking the deposit as income
On accrual books a deposit is unearned revenue — a liability — until the work is performed. Recognizing it as income on receipt overstates revenue and creates a mess if the project cancels and the unearned portion must be returned.
Ignoring state deposit caps
Home-improvement deposits are regulated in several states — California's 10%-or-$1,000 cap is the strictest. A trade deposit invoice that exceeds your state's cap is unenforceable and can expose you to penalties.
How to use this template
- 01
Download the template in your preferred format, or generate a pre-filled version with the download studio above.
- 02
Add your business details, the client's details, and a series invoice number (e.g. 1042-D).
- 03
Enter the full project value and the deposit line showing percentage and amount due now.
- 04
State what the deposit secures, when work begins after payment, and your refund terms.
- 05
Print the balance schedule — completion invoice or milestones with dates.
- 06
Send with the signed agreement referenced, and start work once payment lands.
Skip this template if…
- Recurring monthly engagements — that's a retainer invoice with rollover and overage terms, not a one-time deposit.
- Security deposits on rentals — those are refundable holds governed by landlord-tenant law, not project billing.
FAQs
What is a deposit invoice?
An invoice billing an upfront portion of a project's total — commonly 25–50% — before work begins. It shows the full project value, the amount due now, what the deposit secures, the schedule for the balance, and the refund terms. The final invoice later credits the deposit against the total.
How much should a deposit be?
50% is the norm for freelance and creative work with new clients; 25–33% for larger projects billed in milestones; materials cost or more for custom fabrication. Home-improvement work is the exception — several states cap contractor deposits, including California at 10% or $1,000, whichever is less.
Is a deposit refundable?
Whatever the invoice and agreement say — which is why the terms must be printed. The defensible pattern ties non-refundability to a real cost: a reserved date, ordered materials, or turned-away work. Deposits for work not yet started, with no such cost, are generally refundable.
How do I show a deposit on the final invoice?
Three lines: the full project total, the deposit as a credit with its payment date, and the balance due. Never invoice just the balance figure alone — the client needs to see the arithmetic that produced it.
Is a deposit invoice the same as a proforma invoice?
No. A proforma is a preview of a sale — not a payment demand and not posted to the books. A deposit invoice is a real invoice for a real amount due now, recorded as unearned revenue until the work is delivered.
Do I charge sales tax on a deposit?
Generally tax follows the taxable sale, and most states tax at the time of the taxable transaction — many businesses apply proportional tax on the deposit and the remainder on the balance. Rules differ by state and by whether goods or services dominate, so confirm with your state or accountant.
Need sending, reminders, and payments too?
Turn this template into a full invoicing workflow with Agiled.