Deposit Invoice Template: How to Bill for Project Deposits
A deposit invoice protects you and your client before a single line of work begins. Here's how to structure it, when to use it, and what to do if the client cancels.
What is a Deposit Invoice?
A deposit invoice is a partial invoicefor an upfront payment — typically 30–50% of the total project value. It's issued before work begins and is used to:
Secure the booking
Confirms the client is serious and committed to the project
Protect your time
Covers materials, preparation, and time already invested
Improve cash flow
Gives you capital to fund the project before completion
Protect both parties
Client has committed; you have skin in the game too
When to Charge a Deposit
Deposit Invoice Structure
Your Name / Company
your@email.com
Your Address
Invoice #[NUMBER]-DEP
Date: [DATE]
Due: Before work begins
Bill to:
[Client Name / Company]
| Description | Amount |
|---|---|
50% deposit — [Project Name] Total project value: €[TOTAL] Balance due upon completion: €[BALANCE] | €[DEPOSIT AMOUNT] |
| Total Due Now | €[DEPOSIT AMOUNT] |
Payment due before work begins. Deposit is non-refundable if project is cancelled after work commences.
Bank: [Bank Name] · Account: [XXXXXXXX] · Ref: Invoice #[NUMBER]-DEP
Key elements of a deposit invoice:
Header says "DEPOSIT INVOICE" or "PRO FORMA INVOICE" — never just "Invoice"
Shows the FULL project value, the deposit percentage, and the balance remaining
Due date: "Before work begins" or a specific date — not Net 30
Clearly states what happens to the deposit if project is cancelled
Unique invoice number — add "-DEP" suffix to distinguish from final invoice
What Happens if a Client Cancels After Paying a Deposit?
Non-refundable deposits are standard practice — but only if you state it clearly.
On the invoice, include:
"This deposit is non-refundable if the project is cancelled by the client after work has commenced. If the project is cancelled before work begins, the deposit will be refunded less any administration costs incurred."
For large projects, include cancellation terms in a full contract or engagement letter that the client signs before paying. The deposit invoice references the contract.
Free Deposit Invoice Template
Use our free invoice template tool to create a professional deposit invoice. Select "Deposit Invoice" type to auto-fill the structure. Download as PDF instantly.
Create Deposit Invoice →Invoice + Automated Chasing = Peace of Mind
Create deposit invoices and let Chaser automatically chase the balance payment when it's due.
Start Free Trial →Frequently Asked Questions
What is a deposit invoice?
A deposit invoice is a partial invoice for an upfront payment — typically 30–50% of the project total. It secures the project booking before work begins and is always followed by a final invoice for the remaining balance.
How much should I charge as a deposit?
30–50% is standard. Use 50% for new clients or high-risk projects. Use 30% for long-standing clients or larger projects where cash flow is a concern.
What happens if a client cancels after paying a deposit?
Deposits are typically non-refundable after work has commenced. This must be clearly stated on the invoice and in any contract. If work hasn't started, consider offering a partial refund minus admin costs.
Should I use "Deposit Invoice" or "Pro Forma Invoice" as the header?
Either works. "Deposit Invoice" is clearest for the client. "Pro Forma Invoice" is sometimes used because it indicates the invoice is requesting payment before delivery — which is technically what a deposit invoice is.
Is a deposit invoice the same as the final invoice?
No. A deposit invoice is for the upfront partial payment only. You must also send a final invoice for the remaining balance (50–70%) upon project completion.