Show the hours, not a lump
The most common reason an hourly invoice gets queried is that it says 'labour, $1,710' and nothing else. The client cannot check it, so they ask, and now you are reconstructing a fortnight from memory.
Hours and rate on their own line costs nothing and removes the question. If you kept a timesheet, the days can go on as separate lines and the query never happens at all.
The deposit comes off at the end
Tax applies to the work, not to the balance after a deposit. The order is: labour plus expenses, less any discount, tax on that, then subtract what has already been paid. Subtracting the deposit before tax undercharges the tax and is tedious to unpick later.
Expenses and markup
Materials bought for the job go on as expenses. Whether you mark them up is a pricing decision rather than an invoicing one, and if you do, apply the markup before the figure reaches this page. The markup calculator gives you the number.
Related calculators
- Contractor invoice calculatorLabor, materials and job costs into a total
- Project invoice calculatorA share of a fixed price, billed in stages
- Billable hours calculatorWhat is left to sell after time off and unpaid work
Questions people ask
How do I calculate an hourly invoice?
Multiply hours by your rate, add overtime at its multiplier, add expenses, take off any discount, apply tax to that subtotal, then subtract any deposit already paid.
Does tax apply before or after the deposit?
Before. Tax is charged on the work, not on the balance outstanding. Subtracting the deposit first undercharges the tax.
Should I charge overtime?
Only if it is in what you agreed. Applying a multiplier the client has not seen is how an invoice gets disputed. If overtime is in your terms, put the multiplier on the invoice next to the hours.
Should materials be marked up?
That is a pricing decision, not an invoicing one. Many trades mark materials up to cover the time spent sourcing and collecting them. Apply the markup before the figure reaches the invoice.
How do I turn this into an actual invoice?
The button under the result carries the labour, overtime and expenses into the invoice generator as separate lines, with the tax rate already set.
What if I tracked hours per day?
Use the timesheet, which totals the week from clock times and carries each day onto the invoice as its own line. The client sees the days rather than one number.