A deposit invoice asks your client for part of the price before you start. It covers materials and holds the date for the job. It is not a bill for finished work, so say clearly what the money is for and how it will come off the final invoice.
1What a deposit invoice needs
Use the same details as any invoice: your name, your client's name, a number, the date and a due date. Then add three lines of text that make it a deposit invoice.
- The job it belongs to, for example "Kitchen repaint, 12 Oak Lane". - The agreed total, so the deposit makes sense next to it. - The deposit amount, and how you worked it out (a set amount or a percent).
Keep the estimate number on it too, so the estimate, the deposit and the final invoice can be found together. The invoice generator lets you type a line such as "Deposit, 30% of EST-0014" and set the due date.
2A worked example
Sarah agrees to a kitchen repaint. The estimate, EST-0014, is **$4,000.00**. You ask for a 30% deposit.
| Step | Calculation | Amount |
|---|---|---|
| Agreed price | From EST-0014 | $4,000.00 |
| Deposit | 30% of $4,000.00 | $1,200.00 |
| Left to pay after the deposit | $4,000.00 − $1,200.00 | $2,800.00 |
The deposit invoice says **Deposit, 30% of EST-0014: $1,200.00**, due Nov 12 2026. If sales tax applies to your work where you live, work it out the same way you did on the estimate and show it on its own line. Check the rule for deposits where you work, because it can differ.
3How the deposit comes off the final invoice
When the job is done, the final invoice shows the whole story, so your client never has to guess:
| Line | Amount |
|---|---|
| Agreed in EST-0014 | $4,000.00 |
| Change order CO-1 | + $600.00 |
| Deposit paid | − $1,200.00 |
| Balance due | $3,400.00 |
Never leave the deposit off. If you do, the client pays twice or you lose track of what is owed.
4Wording that avoids arguments
Say whether the deposit is refundable, and when. One plain sentence is enough: "The deposit is used for materials and is not refundable once they are ordered." Put it on the estimate as well as on the deposit invoice, so it was agreed before the money moved.
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Questions people ask
How big should a deposit be?
There is no rule. Many people ask for 25% to 50% on larger jobs, and a smaller share, or none, on short ones. Match it to what you must buy before you start.
Is a deposit the same as a down payment?
In everyday use, yes. Use the word your clients use, and keep it the same on every document.
Do I send a receipt for a deposit?
Yes. A receipt shows the money arrived and is easy to point to later. The receipt maker makes one in a minute.
Can I ask for a deposit on an estimate?
Yes. You can add the deposit to the estimate itself, so your client agrees to it when they approve the price. The estimate generator has a line for it.
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