A deposit invoice bills part of the price before the work starts, and a final invoice bills the rest when the job is done. You can do it two ways: send one invoice for the full price and record the deposit against it as a partial payment, or send a separate deposit invoice first and a final invoice for the balance later. Either way, the final invoice should show the full price, the deposit already paid and the balance due.
This guide works through a $6,400 kitchen job with a 30% deposit using both methods, with the numbers and the wording for each invoice.
Rules last checked: October 2026. This is general information, not legal advice. Rules vary by state and country.
When should you ask for a deposit?
Ask for a deposit when you would be out of pocket if the client cancelled after you said yes. That usually means one of three things:
| Situation | Example | What the deposit covers |
|---|---|---|
| You buy materials for the job | A countertop cut to measure, an electrical panel ordered for one house | Materials you cannot return or reuse |
| You hold a date | A wedding photographer booking a Saturday in June | The work you turn away for that date |
| The job is large or the client is new | A first job for a client with no payment history | Your risk if the client never pays |
For small jobs paid on the day, such as a call-out or a single repair, a deposit adds paperwork without much protection. Short terms like due upon receipt usually do the job there.
How big should a deposit be?
Size the deposit from your own costs. Add up what you will spend before the client's next payment, then add the value of the time you would lose if they cancelled late:
- Materials bought before you start. For the kitchen job below, a quartz countertop and tile ordered to measure come to $1,650.
- Booked time you would lose. Two days held on the calendar that you could not fill at short notice.
- Round to a clean figure or percentage. $1,650 in materials plus a margin for the lost days lands near 30% of $6,400, so the contractor asks for $1,920.
Check the law before you settle on a number. Some states cap deposits on home improvement work. In California, the Contractors State License Board says a home improvement contract must state that "the down payment may not exceed $1,000 or 10 percent of the contract price, whichever is less." On a $6,400 job, a California contractor could take $640 up front. Later payments there cannot run ahead of the work done and materials delivered, so the rest would be billed as stages, which our guide to progress billing covers.
What are the two ways to invoice a deposit?
You can keep the whole job on one invoice, or split it across two. Both are fine. The choice depends on how your client pays and how they file paperwork.
| Option A: one invoice, deposit recorded as a partial payment | Option B: deposit invoice, then final invoice | |
|---|---|---|
| Invoices sent | One, for the full $6,400 | Two: $1,920 now, $4,480 at completion |
| What the client sees at the start | The full price, with $1,920 due now | Only the deposit |
| Running balance | On the same invoice after each payment | Written on the final invoice |
| Suits | Clients paying by check or bank transfer, simple jobs | Clients paying by card, accounts teams that approve one bill at a time |
| Watch out for | The full amount looks overdue if you set one due date | The final invoice must reference the deposit invoice |
Option A: one invoice with a partial payment
Send one invoice for the full price, with a note on what is due now. When the deposit arrives, record it against the invoice as a partial payment. The invoice stays open with the balance until the job is done.
Here is the kitchen job on one invoice:
| Date | Event | Paid | Balance |
|---|---|---|---|
| April 7 | Invoice INV-0207 sent for $6,400 | $6,400 | |
| April 8 | Deposit received by bank transfer | $1,920 | $4,480 |
| April 24 | Job complete, balance requested | $4,480 | |
| April 26 | Balance paid | $4,480 | $0 |
Wording for the invoice when you send it:
Kitchen countertops and backsplash, 22 Oak Lane, per quote Q-0091: $6,400.
Deposit of $1,920 (30%) due upon receipt. Work is scheduled to start April 14 once the deposit is received. Balance of $4,480 due on completion.
The weak spot is the due date. Most invoicing tools give an invoice one due date, so a $6,400 invoice due April 7 looks overdue for the whole $4,480 until the job ends. Set the due date to the expected completion date, and put the deposit deadline in the note.
Option B: a deposit invoice, then a final invoice
Send a short invoice for the deposit alone. When the job is done, send a final invoice for the balance that points back to the deposit.
The deposit invoice:
Invoice INV-0207 · Deposit invoice · Kitchen countertops and backsplash, 22 Oak Lane, per quote Q-0091
30% deposit on a contract price of $6,400: $1,920
Due upon receipt. Work is scheduled to start April 14 once the deposit is received.
The final invoice:
| Line | Amount |
|---|---|
| Kitchen countertops and backsplash, 22 Oak Lane, per quote Q-0091 (completed April 24) | $6,400 |
| Less deposit paid April 8 (invoice INV-0207) | -$1,920 |
| Balance due | $4,480 |
If your invoicing tool does not accept a negative line, bill the balance as a single line instead: "Balance for kitchen countertops and backsplash per quote Q-0091. Contract price $6,400, deposit of $1,920 paid April 8 on INV-0207." The client sees the same arithmetic either way.
Two invoices give the deposit its own number, due date and pay link, which helps when the client's accounts team approves each bill separately. Each invoice gets the next number in your series, and our guide to invoice numbering covers how to keep that tidy.
What should you write on a deposit invoice?
A deposit invoice carries the same details as any invoice, which our guide on how to write an invoice lists field by field. Add these five to make the deposit clear:
- The word "deposit" in the title or the first line, so nobody mistakes it for the full bill.
- The contract price the deposit is a share of.
- The quote or contract number, so the deposit can be matched to the job.
- What the deposit triggers, such as "work starts once the deposit is received."
- Whether it is refundable, in the same words your quote or contract uses.
Some businesses send a proforma invoice for the deposit instead. A proforma invoice is a preview of a bill, often used to get a payment approved. Our guide to the difference between a quote, an invoice and a receipt explains when each one fits. For most trades and freelancers, a normal invoice marked "deposit" is simpler and gives the client a record to file.
Should a deposit be refundable or non-refundable?
Decide before the client pays, and write the answer into the quote or contract. A refundable deposit is returned if the job is cancelled. A non-refundable deposit is kept, usually because it paid for something you cannot get back, such as custom materials or a date you turned other clients away for.
Wording you can adapt:
Refundable: "This deposit will be refunded in full if the job is cancelled before April 14."
Non-refundable: "This deposit is non-refundable once the countertop is ordered on April 9, as it is cut to measure."
Consumer protection rules can override what your invoice says. Under the FTC's Cooling-Off Rule, a buyer who agrees to a sale of $25 or more at their home can cancel until midnight of the third business day after the sale, and the seller then has 10 days to refund all the money. The rule does not cover repairs or maintenance the buyer asked you to come and do, but it does cover anything sold beyond that request. If you quote and sign jobs at the client's kitchen table, hold off on non-refundable costs until that window closes, and check your state's rules as well.
What does this look like for different trades?
The method stays the same. The trigger and the refundability change:
| Trade | Typical deposit trigger | Refundable? |
|---|---|---|
| General contractor or remodeler | Signed contract, before materials are ordered | Usually until materials are ordered. State caps may apply. |
| Electrician | Panel, fixtures or EV charger ordered for the job | Often non-refundable once special-order parts are bought |
| Photographer | Booking a date | Often non-refundable, because the date is held |
| Freelance designer or developer | Project kickoff | Often credited to the first milestone, refundable if no work has started |
See how the deposit and balance flow works on the invoicing for contractors, invoicing for electricians and invoicing for photographers pages. If you are weighing a deposit against full payment up front, our guide to payment in advance compares CIA, COD and deposit terms.
How does SolidInvoice handle deposits?
SolidInvoice supports both options. Price the job as a quote, and when the client approves it, mark it accepted to get a draft invoice with every line from the quote.
For Option A, send that invoice and record the deposit as a partial payment when it arrives, including a check, ACH or bank transfer. The invoice's pay link then charges only the remaining balance, so the client pays the last $4,480 by card or PayPal without anyone working out the figure. For Option B, send a separate deposit invoice with its own pay link, so the client can pay the deposit by card or PayPal straight from the email. On Pro and Business plans, automated reminders follow up if either payment runs late.
Deposit invoice FAQ
What is a deposit invoice?
A deposit invoice bills part of the price of a job before the work starts. It names the contract price, the deposit amount, what the deposit triggers and whether it is refundable. The rest of the price is billed later on a final invoice that subtracts the deposit already paid.
How do you invoice a deposit and the balance?
Either send one invoice for the full price and record the deposit against it as a partial payment, or send a separate deposit invoice and then a final invoice for the balance. In both cases, the final invoice shows the full price, the deposit paid and the balance due.
How do you show a deposit on a final invoice?
List the full contract price, then a line for the deposit with its date and the deposit invoice number, such as "Less deposit paid April 8 (invoice INV-0207): -$1,920," then the balance due. If your tool does not allow negative lines, bill the balance as one line that states the price and the deposit.
What percentage should a deposit be?
There is no standard percentage. Size the deposit to cover the materials you buy before the next payment and the booked time you would lose if the client cancelled. Some states cap deposits on home improvement work. California limits them to $1,000 or 10 percent of the contract price, whichever is less.
Is a deposit invoice the same as a proforma invoice?
No. A deposit invoice is a real invoice that requests payment of part of the price. A proforma invoice is a preview of a bill, often used to get a payment approved before the real invoice is issued. Most trades and freelancers use a normal invoice marked as a deposit.
Can a client get a deposit back?
It depends on what your quote or contract says and on consumer law. A refundable deposit is returned if the job is cancelled. A non-refundable deposit can still be refundable by law in some cases, such as the FTC Cooling-Off Rule's three-day cancellation window for many sales made at the buyer's home.
Take the deposit, then let the pay link collect the balance. Start a free 14-day trial of SolidInvoice.