How to write a contractor invoice

A contractor invoice should make it obvious what was done on the job, what is materials versus labor, how tax was handled, and what is due now versus already paid. Use the calculator for this period's totals.

Worked example: a kitchen progress invoice

The contract is $24,000. This invoice covers cabinets and a first materials order.

Labor: 40 hours at $75 = $3,000
Materials: $1,850
Subtotal: $4,850
If tax is 7% on the whole subtotal: $339.50, total this period = $5,189.50
If tax is 7% on materials only: $129.50, total this period = $4,979.50

If a 30% deposit of $7,200 was already collected against the contract, this invoice can show the period total and a note that the deposit remains applied to the job, or apply part of it here. Either way, say so on the invoice so the client is not surprised.

Labor, materials, and change orders

Keep labor and materials on separate lines (or sections). If the scope changed, add a change-order line that points to the written approval, rather than quietly raising a rate. For a full job quote before work starts, use a contractor estimate template.

See a sample invoice

Open the sample PDF

Questions people ask

What should a contractor invoice include?

Your business and license details, the client's name and job site, the invoice number and dates, labor and materials (and equipment, if you bill it), tax where it applies, any deposit or prior billings, and the balance due for this invoice.

How does progress billing work on a contractor invoice?

You invoice for the work completed in this period, not necessarily the whole job. Show this period's lines, then any amount already billed or any deposit applied, and the remaining balance. Keep a running total against the contract price.

Do contractors charge tax on labor and materials?

It depends on the jurisdiction and the type of work. Many invoices tax materials and not labor, some tax both, and some are exempt. The calculator can tax the whole subtotal; adjust it, or use a generator that marks lines as not taxable, to match the rule that applies to you. This is not tax advice.