How to Invoice for Deposits and Partial Payments
State the deposit or milestone amount clearly as a percentage or fixed sum of the total project cost, reference the full project value on the invoice for context, and specify exactly what triggers each remaining payment. A 25–50% upfront deposit is common for new clients or larger projects.
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Requiring a deposit before starting work protects you from non-payment risk on larger or new-client projects, and splitting a project into milestone payments keeps cash flowing steadily rather than waiting for one lump sum at the end.
Common Deposit and Milestone Structures
| Structure | How It Works |
|---|---|
| 50/50 split | 50% deposit before starting, 50% on delivery — simple and common for shorter projects |
| Three-milestone (33/33/34) | Deposit, midpoint, and final payment — spreads risk across longer projects |
| Fixed deposit + final invoice | A flat deposit amount (not percentage-based) regardless of total project size |
What to Include on a Deposit Invoice
- Total project value — even though you’re only billing a portion, showing the full context avoids confusion
- This invoice’s specific amount and what it represents — “50% deposit” or “Milestone 1 of 3,” clearly labeled
- Remaining balance and when it’s due — tied to a date or a clear deliverable/milestone trigger
- What happens if the project is cancelled — whether the deposit is refundable, and under what conditions
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Should Deposits Be Refundable?
This should be decided and stated clearly before any deposit is collected, not negotiated after a project falls through. Many freelancers make deposits non-refundable once work has begun (to cover time already invested) but refundable if cancelled before any work starts — whatever policy you choose, put it in writing in your contract, not just the invoice.
Deposit Invoices vs Pro Forma Invoices
Don’t confuse a deposit invoice (a real, payable invoice for a portion of the total) with a pro forma invoice (a non-binding preview of costs sent before work is confirmed) — see our guide on what a pro forma invoice is for that distinction. Once a deposit invoice is sent, treat it the same as any other invoice in terms of clear payment terms and follow-up if it goes unpaid — see our guide on handling non-paying clients if a deposit itself is refused.
Frequently Asked Questions
How much deposit should I ask for on a new project?
25–50% is a common range, with larger or riskier projects (new clients, custom work with no resale value if cancelled) generally justifying a higher percentage upfront.
Is it normal to ask new clients for a deposit?
Yes — requiring a deposit, especially from new clients or on larger projects, is standard practice across many freelance industries and generally isn’t seen as unusual or distrustful by reasonable clients.
What if a client refuses to pay a deposit?
A client unwilling to pay a reasonable deposit before work begins can be a red flag worth taking seriously — it’s generally safer to hold firm on the deposit requirement than to waive it and take on the full non-payment risk yourself.
Final Thoughts
Deposit and milestone invoicing protects your cash flow and reduces non-payment risk on larger projects — the key is stating amounts, triggers, and refund policy clearly upfront, so there’s no ambiguity if a project’s scope or timeline changes along the way.
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Disclaimer: This article is for informational purposes only and does not constitute legal advice. Contract terms and enforceability vary by jurisdiction — consult a qualified professional for guidance specific to your situation.