The deposit invoice is the first document a new client pays, and it sets the tone. It tells them you run a business with a process, that work begins when payment clears, and exactly how the rest of the project will be billed. It also protects you: the dates you hold, the materials you buy and the other work you turn down are covered before you commit.
Many freelancers send a deposit as a vague line on a generic invoice. That causes two problems later. The client's accountant does not know it is an advance against a larger total, and when the final invoice arrives nobody is sure how much was already paid. This template fixes both by showing the full project value, the deposit percentage and the remaining schedule on one page.
TL;DR
The deposit invoice template shows the total project value, the deposit percentage and amount, a [TAX RATE]% placeholder, the refund rule, and the schedule for remaining payments. Send it the day the contract is signed, and start work when it clears. Many freelancers ask for 25 to 50% upfront; whatever you choose, state the percentage and the remaining balance so the final invoice reconciles cleanly.
What's inside
- Header and bill-to — your details and the client's billing entity.
- Project reference — project name, proposal and contract references, start date.
- Project value and deposit — total agreed fee, deposit percentage, deposit amount.
- Remaining payment schedule — the stages or dates when the balance will be invoiced.
- Refund and cancellation rule — one sentence that matches the contract.
- Start condition — work and date reservations begin when the deposit clears.
- Payment methods — bank details and online payment option.
When to use it
Send it immediately after the client signs your contract or accepts your proposal, for any fixed-fee project over a size you would not want to lose. It is especially important when you are reserving a date (shoots, events, workshops), buying materials or software on the client's behalf, or bringing in subcontractors.
Do not use a deposit invoice for ongoing monthly work billed in advance; that is a retainer invoice. If the client needs a document before they can raise a purchase order, send a proforma invoice first, then the deposit invoice once the PO exists. Once the deposit is paid, issue a payment receipt if the client asks for one.
How to set the deposit percentage
There is no single right number, but a few practices are common:
- 25 to 30% for longer projects with several milestones, where the risk is spread out.
- 50% for short projects, first-time clients, or work where you invest heavily upfront.
- Fixed booking fee for date-based work like photography and events, regardless of package size.
- 100% upfront for small jobs under a set amount, or for clients with a history of late payment.
Whatever you choose, connect it to the work. "50% to reserve your shoot date and begin pre-production" lands better than "50% deposit." The getting paid as a freelancer guide covers deposit strategy in more depth.
Wording that prevents deposit disputes
Three short sentences do most of the work. First, what the deposit secures: "This deposit reserves [DATE] and covers pre-production." Second, the refund rule: "Non-refundable once work has begun" or "Refundable minus costs incurred if canceled more than 30 days before the start date." Third, the credit: "This amount will be credited against the final invoice." Keep each consistent with your service contract.
Customize it in your COLO workspace
In COLO you can convert an accepted proposal into an invoice and adjust the line items to bill the deposit amount, with tax rates and discounts as needed. When later payments arrive, invoices support partial payments, so you can see what has been paid against the project. You can email the invoice or download a PDF, and the client can pay by card through Stripe or by PayPal from the client portal. See Invoicing and Payments.
You create the deposit invoice yourself when you are ready to send it; it is not generated for you when the contract is signed.
Common mistakes
- No total project value. The client cannot see what the deposit is a part of.
- No refund rule. A cancellation turns into an argument.
- Starting before it clears. The deposit becomes optional.
- Calling a retainer a deposit. Different documents, different accounting.
- Forgetting to credit it. The final invoice must subtract the deposit by invoice number.
FAQ
Q: How much deposit should a freelancer ask for?
Many freelancers ask for 25 to 50% upfront. Higher deposits are common when you must book dates, buy materials or turn down other work, such as events and photography.
Q: Is a deposit refundable?
Only if your contract says so. Many contracts make deposits non-refundable once work has started or a date has been reserved. Put the refund rule on the deposit invoice in one sentence.
Q: What is the difference between a deposit and a retainer?
A deposit is an advance against a specific project's total. A retainer usually buys ongoing availability or a block of time. Bill them on different templates so the client's books treat them correctly.
Q: Should tax be charged on a deposit?
In many jurisdictions tax is due when payment is received, including on deposits, but rules differ. Check with an accountant and use the tax line accordingly.
Q: Do I start work before the deposit clears?
Most freelancers wait for the deposit to clear before booking dates or starting. Saying so on the invoice keeps the start date tied to payment.