Custom work carries risk. A furniture maker who buys walnut slabs, a builder who orders windows, or a designer who blocks out weeks all spend money before the job is finished. A deposit invoice protects them, and it reassures the customer that their slot is reserved. It needs to show the full project price, the share being paid now, and when the remaining payments will fall due. This Deposit Invoice Template puts the deposit share front and centre with a donut chart, then sets out the whole payment schedule so nobody is surprised later.
Who Asks for a Deposit
Deposits are common for furniture makers, cabinet and joinery shops, contractors and remodelers, wedding and event suppliers, photographers, web and software projects, printers of large orders and any business ordering custom materials for a client. The sample shows Oak & Iron Custom Furniture requesting a 30% deposit from a couple for a walnut dining table and two benches.
A Donut Chart Where Other Invoices Put a Logo
The top-right corner holds a large donut chart: a pale lavender ring with an amber segment covering 30% of the circle, and 30% DEPOSIT in the middle. It shows at a glance what share of the project this invoice covers. On the left, Deposit Invoice is set in bold navy Sora, with the maker’s name in copper and the address and contact line underneath.
The client block and the invoice number, date, and deposit due date follow. A strip summarises the project: description, quote reference, project total, build start and estimated delivery. The deposit line itself sits in a short table, followed by the payment schedule showing each payment’s share, trigger, amount and status. A deposit terms note sits beside the totals, a client acceptance line sits below, and the navy footer band is filled with amber for exactly 30% of its width, repeating the chart as a progress bar.
Common Deposit Amounts by Trade
There is no single rule, but these ranges are typical. Check any legal limits in your area, since some states cap deposits for home improvement work:
| Business | Typical deposit | Why |
|---|---|---|
| Custom furniture & cabinetry | 30- 50% | Materials are bought for one client |
| Home improvement contractors | 10-33%, often capped by law | Consumer protection rules |
| Wedding & event vendors | 25-50% | The date cannot be resold |
| Web & creative projects | 30-50% | Time is reserved, and work starts immediately |
| Large print or merchandise orders | 50% | Stock and press time are committed |
The Sample Schedule
The table costs $6,850.00 in total. The deposit is 30%, or $2,055.00, due within a week of signing. A progress payment of 40%, $2,740.00, falls due when the tabletop is finished, and the final 30%, $2,055.00, is due on delivery. Showing all three payments on the first invoice means the client can plan for them, and each later invoice simply updates the status column.
Updating the Donut for a Different Share
The chart is a group of two ring shapes: a full pale ring and an amber arc. To show a different deposit, such as 50%, change the amber arc to cover half the circle and update the percentage text in the middle; the footer bar is a rectangle whose width you can stretch to match. If you prefer not to show a chart, delete the group and the percentage text, and the layout still works.
Editing the Deposit and Schedule Tables
The project strip, deposit line, payment schedule, and totals are editor tables. Double-click to type in them or use Edit Table Data; + Add Row and – Remove Last change the number of payments. Amounts are typed text, so recalculate each payment from the project total and check that they add up to 100% before sending.
Deposit Terms That Prevent Disputes
Say clearly what the deposit buys and when it becomes non-refundable. The sample explains that the deposit reserves the build slot and pays for materials; you might prefer to say it cannot be refunded once the slabs are cut, and that it is credited in full on the final invoice. Put the same wording in your quote or contract. A signed acceptance line on the deposit invoice gives you written confirmation that the client agreed.
Colours and Branding
Navy and amber feel dependable and warm. A woodworker might prefer forest green and walnut brown; a wedding supplier blush and gold. Change the donut arc, the Deposit Due row, and the footer bar together so the share paid colour stays consistent.
Sending the Deposit Request With Your Quote
This template is laid out for letter-size paper. Send it as a PDF with your signed quote attached. For clients who prefer paper, print it and ask them to sign the acceptance line when they hand over the deposit.
From Deposit to Final Invoice
When the job is complete, the final invoice should list the full project and subtract every payment already made, including this deposit, so the client sees the complete picture. Keep the same project reference and quote number on every invoice in the series so they are easy to match.
Deposits and Your Cash Flow
Deposits are not just protection against cancellations; they fund the job. Buying materials with the client’s deposit rather than your own cash means you can take on more projects at once without borrowing. Track deposits separately in your books, because they are money received for work not yet done. If a project is delayed for months, keep the client informed and confirm in writing that the deposit still holds their place in your schedule.
What Clients Want to Know Before Paying
Clients are more comfortable paying a deposit when the invoice answers their questions: what exactly they are buying, when work will start, when they can expect delivery, and what happens if plans change. The project strip and the deposit terms note cover all four. Adding a photo of similar past work to your email, or a link to reviews, reassures first-time clients that they are dealing with an established business.
Deposit Invoice FAQs
Is a deposit taxable when it is received?
Rules differ. In some places, tax is due when the deposit is paid; in others, at completion. Ask your accountant.
What if the client cancels?
Follow your written terms. Refund any part of the deposit not spent on materials if your terms allow it.
Can I use this for a retainer?
Yes. Rename the deposit line Retainer and adjust the schedule to match your agreement.
