Free deposit invoice template for contractors
A deposit invoice bills only the upfront payment, before the work starts. Show the job total, the deposit due now, what it covers, when it's due, whether it's refundable, and the balance left. Give it its own invoice number, then subtract it on the final invoice as "Less deposit paid." Check your state's deposit rules.
Some customers call it a down payment invoice; it's the same document. Setting your deposit policy or wording? See how to ask for a deposit.
What you type stays on your device. Everything you type into the invoice stays in this browser tab. It isn't uploaded, saved, or sent anywhere, so refreshing or closing the page clears it. Save as PDF before you close it.
Fill in your deposit invoice
Enter the job total, then either the deposit amount or its share of the total as a percent. The other one fills in for you, along with the balance after the deposit.
DEPOSIT INVOICE
| Job total (from the approved estimate) | |
| Deposit % of total | |
| Deposit due now | $0.00 |
| Balance after deposit | $0.00 |
This is a general template, not legal or tax advice. Some states limit up-front deposits; rules vary by state, so check locally.
Need a full invoice with line items instead? See invoice templates by trade.
What goes on a deposit invoice
The heading "Deposit invoice" and the next number in your invoice sequence
Title it "Deposit invoice" so nobody mistakes it for the final bill, and give it the next number in your normal sequence (1001, 1002...). That number goes on the final invoice later, next to the deposit line.
The job and the estimate it comes from
Name the job, the job address, and the estimate number the customer approved, with the date they approved it. If you don't have an estimate yet, start with the free estimate template.
Job total, deposit due now, and balance left
Show the job total first, then the deposit as both a share of the total and an amount, then the balance left after the deposit. The customer sees the whole picture on one page.
What the deposit covers (materials, holding the start date)
Say what the money is for: ordering materials for this job, holding a start date, or both. If it holds a date, write the date.
Due date and how to pay
Give a due date, not just "upon approval," and list every way you accept payment: your own card payment link, a check made out to your business name, or a business payment profile.
Refund and cancellation terms (check your state)
State in plain words what happens to the deposit if the customer cancels. Check your state's rules first, because some states set them for home-improvement work. More on the rest of an invoice: how to write an invoice.
Example: a deposit invoice for a vanity replacement
Example only: change the amounts and terms to match your job and your state's rules.
| Part | What it says |
|---|---|
| Notes line | Deposit for vanity replacement at [job address], per estimate #[number] approved [date]. Job total $750.00. Deposit of $250.00 due by [date] to order the vanity and parts and hold your start date. Balance of $500.00 due when the job is finished. Refund terms: [your terms; check your state's rules]. |
| Line item | Deposit: 1/3 of vanity replacement (job total $750.00), per estimate #[number] · Qty 1 · $250.00 (about 33% = $250.00) |
| Totals | Deposit due now: $250.00 · Balance after deposit: $500.00 (invoiced when the job is finished) |
| Later, on the final invoice | Vanity replacement: $750.00 · Less deposit paid ([date], deposit invoice #[number]): -$250.00 · Balance due: $500.00 |
Deposit invoice vs estimate vs receipt
| What it is | When you send it | What it shows | |
|---|---|---|---|
| Estimate | Your price for the job, for the customer to approve | Before the customer says yes | The work, the price, and the terms you're offering |
| Deposit invoice | A bill for the upfront part of the price | After the estimate is approved, before work starts | The deposit due now and the balance left |
| Receipt | Confirmation that you were paid | When the deposit comes in | The amount, the date, and the job it was for |
After the deposit is paid
Send a receipt
Send a short receipt with the amount, the date, and the job. If the deposit isn't paid by the due date, see how to follow up on an unpaid invoice.
Subtract it on the final invoice
On the final invoice, list the job, then a line "Less deposit paid ([date], deposit invoice #[number])," then the balance due. The free invoice template has that line built in.
Billing in more than two payments?
For a longer job with stage payments in between, see progress invoicing.
Sending it from your phone
Tap Print / Save as PDF, choose "Save as PDF," then attach the file to an email or a text. Send it to the number or address the customer gave you for this job, keep the message about the job, and stop texting if they ask you to. Texting rules vary; check what applies in your state. For what to say when an estimate goes quiet, see these estimate follow-up texts.
Rules to check in your state
Before you set a deposit policy, check your state's contractor licensing board for limits on how much you can collect before home-improvement work starts and for any cancellation rights the customer has. If you sell the job at the customer's home, federal rules may give the customer 3 business days to cancel for a full refund. Don't order materials or start work until that period ends unless the rules allow it. Thinking of adding a card fee? Check your state's surcharge rules and your card processor's terms first. Ask your state's tax agency or your tax preparer whether sales tax applies to a deposit. This page isn't legal or tax advice.
Frequently asked questions
What is a deposit invoice?
An invoice for the upfront part of a job's price, sent after the customer approves the estimate and before the work starts. It shows the job total, the deposit due now, and the balance left.
Is a deposit invoice the same as a receipt?
No. The invoice asks for the deposit; a receipt confirms you were paid. Send a short receipt with the amount, the date, and the job once the deposit comes in.
Does a deposit invoice need its own invoice number?
Give it one. Use the next number in your normal sequence, and put that number next to "Less deposit paid" on the final invoice so both records line up.
How much deposit can a contractor ask for?
It depends on the job and your state. Some states limit how much a contractor can collect before home-improvement work starts, so check your state's contractor licensing board before you set a deposit policy. If you sell the job at the customer's home, federal rules may give the customer 3 business days to cancel for a full refund. Don't order materials or start work until that period ends unless the rules allow it.
Is a down payment invoice different from a deposit invoice?
People use the two terms for the same thing: an invoice for part of the price, paid before the work starts. Use whichever word your customers know.
Do I charge sales tax on a deposit?
It depends on your state and your trade. Check with your state's tax agency or your tax preparer before you add tax to a deposit invoice.
Can I text a deposit invoice to a customer?
You can. Save it as a PDF and send it to the number the customer gave you for this job. Keep the message about the job, and stop texting if they ask you to. Texting rules vary; check what applies in your state.
Doing this from your phone
Pencilslip is an estimates and invoices app for solo tradespeople. The free version works today in your phone's browser: estimates, invoices, job photos, your own payment link, and a PDF you can send. No account needed. Free: no cap on the number of estimates or invoices on this device. It saves only in this browser on this device, so download a backup from Settings now and then.
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