Contractor Invoice Generator

Formula and inputs

A progress invoice bills a percentage or milestone amount of the contract price, minus any deposit applied. Each invoice should show contract total, previously billed amounts, this invoice's amount, and remaining balance. If retainage applies, show it as a withheld line so the customer sees the final payment trigger clearly.

Example scenario

Kitchen remodel progress draw

A $38,000 kitchen remodel collected a $7,600 deposit. At rough-in completion, the contractor bills the 40 percent milestone: $15,200, split as $9,000 labor and $6,200 materials, with the invoice showing $22,800 billed to date and $15,200 remaining.

• -Contract total: $38,000
• -Deposit applied: $7,600
• -Milestone billed: 40% = $15,200 (labor $9,000, materials $6,200)
• -Billed to date after this invoice: $22,800

The customer can verify every number against the signed contract without a phone call. The labor and materials split matters if questions arise about a supplier receipt, and the running totals prevent the classic end-of-job dispute about what was already paid.

Common mistakes

• -Billing round amounts that do not reconcile to the contract, inviting end-of-job disputes.
• -Mixing change-order work into base-contract lines instead of billing it separately.
• -Forgetting to show the deposit as applied, so the final invoice surprises the customer.

How to interpret the output

• -If customers frequently question invoices, the gap is usually in the contract's payment schedule, not the invoice itself; align both documents.
• -Materials markup disputes drop sharply when invoices separate materials at billed rates from labor lines.
• -A final invoice should reach zero balance against the contract plus signed change orders; if it does not, find the discrepancy before sending.

Related tools

Related articles