Free deposit invoice template for milestone billing
A deposit invoice collects money before work begins, and this free template covers the whole cycle: the deposit request, the milestone schedule, and the final invoice showing the deposit credited against the total. All of it is here with nothing behind an email form. The percentages below reflect what deposits actually run, by job size.
What goes on a deposit invoice
| Field | What goes there |
|---|---|
| Parties and contact details | You and the client, same as any invoice, with the contract or proposal both parties signed named explicitly. |
| Invoice number and type | Mark it plainly: deposit invoice 2026-021, against contract total $6,000. The label prevents double payment confusion later. |
| Contract total | The full agreed price, shown even though this invoice collects only part of it. Context is what makes a deposit look reasonable. |
| Deposit percent and amount | Both the percentage and the dollar figure: 30 percent, $1,800. The percent justifies, the dollars collect. |
| Milestone schedule | The full payment plan as a table, so the client sees this payment inside the whole arc of the job. |
| What the deposit triggers | One line stating what happens on receipt: work is scheduled, materials are ordered, the start date is held. |
| Due date | Deposits are due on receipt or within a few days. A Net 30 deposit defeats its own purpose. |
| Payment methods | Fastest options first. A deposit paid by card today beats a check that arrives after the start date has passed. |
| Deposit credit line, on later invoices | On the final invoice: less deposit received March 2, shown as a negative amount above the balance due. |
The line-item table
| Milestone | Description | Percent | Amount |
|---|---|---|---|
| Deposit | Due at signing, before work is scheduled | 30% | $1,800.00 |
| Midpoint | Due at delivery of first draft | 40% | $2,400.00 |
| Final | Due at handoff of final files | 30% | $1,800.00 |
How to use this template
- Put the schedule in the contract first. The milestone table below belongs in the signed agreement before it appears on any invoice. An invoice can request a deposit; only a contract can require one.
- Send the deposit invoice at signature. The moment the contract is signed, the deposit invoice goes out, due on receipt. Work gets scheduled when it is paid, and saying that sentence out loud is the whole system.
- Invoice each milestone as its deliverable lands. One invoice per milestone, referencing the schedule: milestone 2 of 3, due at delivery of first draft. Never let two milestones stack up unbilled.
- Credit the deposit on the final invoice. The last invoice shows the full contract total, each payment already received as a dated negative line, and the remaining balance. The client should be able to audit the whole job from that one page.
Get paid faster
Size the deposit to the job
Common practice: around 50 percent on jobs under $1,000, 25 to 50 percent in the low thousands, and 10 to 30 percent on larger projects where a big deposit strains the client's cash. Materials heavy work justifies the high end.
Milestones are deliverables, not dates
Due at delivery of first draft survives a slipped week; due March 15 does not. Tie every payment to something the client receives and the schedule polices itself.
Name the refund rules before they matter
Say in the contract what happens if the job cancels: deposit refundable minus work completed, or nonrefundable after materials are ordered. Deposit fights are almost always fights about terms nobody wrote.
Hold the last piece until handoff
Final files, keys, or credentials transfer when the final balance clears. Kindly worded and consistently applied, this single policy eliminates the trailing unpaid 10 percent that haunts project work.
Download the blank PDF for a fill-in version or the CSV for Excel or Google Sheets; the milestone rows and deposit credit line are already in place.
Frequently asked questions
How much should a deposit be?
By job size: roughly half up front for jobs under $1,000, 25 to 50 percent for mid size projects, and 10 to 30 percent on large ones. Push toward the high end when you buy materials early or turn down other work to hold dates.
Are deposits refundable?
Whatever the contract says, which is why the contract must say something. A common fair structure: refundable minus the value of work already done and materials already ordered. If you want a true nonrefundable retainer, use that word and say it plainly.
How do I show a deposit on the final invoice?
Show the full contract total, then a dated negative line for each payment received, then the balance due: total $6,000, less deposit received March 2 of $1,800, less milestone 2 payment of $2,400, balance due $1,800. One page, self auditing.
What is the difference between a deposit and a retainer?
A deposit is prepayment against a specific defined job and is worked off as the job progresses. A retainer buys availability, a standing claim on your time by the month, and typically renews rather than depletes. The invoicing and refund logic differ, so use the right word.
Who is Staxen, since the template is free?
A software company for trade contractors. Its Ivy the Invoicer runs milestone billing natively, collecting deposits and progress payments by card or ACH with automatic reminders, priced at $59 per month per AI employee, $149 per month for all three. This page gives away the manual method because it works.
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