What is the difference between full project and milestone billing?

Full project invoices the entire contracted amount on one invoice. Milestone billing invoices a portion now—by amount or percent of the project total—while tracking remaining unbilled project value.

Does the remaining unbilled amount include prior invoices?

No. Remaining unbilled is this invoice’s project or milestone charge subtracted from the contracted project price. It does not track payments or invoices you have already sent.

How are expenses handled?

Add reimbursable or billable expenses separately from the project or milestone charge. Expenses are included in the subtotal before discounts and tax.

Is tax calculated before or after a discount?

Tax is applied after the discount, on the discounted subtotal (charge + expenses − discount). Confirm the tax rules that apply in your jurisdiction.

What does Create this invoice do?

It opens the Invoice Generator with your project or milestone charge, expenses, discount, tax, deposit, and currency prefilled so you can review and send the invoice.

Project Invoice Calculator

Invoice fixed-price or milestone project work. Add expenses, apply a discount and tax, then subtract any deposit already paid.

Currency

Project

Description (optional)

Project price / contracted amount

Billing method

Expenses (optional)

Adjustments

Discount

Tax rate (%)

Deposit / amount already paid

Invoice summary

Project charge: $5,000.00
Expenses: $0.00
Subtotal: $5,000.00
Discount: $0.00
Tax: $0.00
Invoice total: $5,000.00
Amount paid: $0.00
Balance due: $5,000.00
Overpayment: $0.00
Remaining unbilled project: $0.00

Create this invoice

Ready to send it? Open the Invoice Generator or browse all calculators.

How to invoice for project-based work

Enter the contracted project price.
Choose Full Project to bill everything now, or Milestone to bill a portion by amount or percent.
Add optional expenses (materials, software, travel).
Apply a discount and tax if needed, then subtract any deposit already paid.

Example: A $5,000 website project billed as a 25% milestone ($1,250), plus a $50 expense, 10% discount ($130), and 8% tax on the remaining $1,170 → tax $93.60 → invoice total $1,263.60. Remaining unbilled project value is $3,750.

Fixed-price vs. milestone billing

Fixed-price (full project) invoices work well when the scope is clear and you deliver in one go. Milestone billing spreads payments across phases—kickoff, design, launch—so cash flow matches progress. Keep the amount on this invoice separate from the overall project value so clients know what they owe now.

Deposits, expenses, and partial invoices

Deposits and amounts already paid reduce the balance due on this invoice. List expenses as separate lines so reimbursables stay transparent. Partial project invoices (milestones) show remaining unbilled contracted value for context—they do not replace a full payment history.

Frequently asked questions

What is the difference between full project and milestone billing?: Full project invoices the entire contracted amount on one invoice. Milestone billing invoices a portion now—by amount or percent of the project total—while tracking remaining unbilled project value.
Does the remaining unbilled amount include prior invoices?: No. Remaining unbilled is this invoice’s project or milestone charge subtracted from the contracted project price. It does not track payments or invoices you have already sent.
How are expenses handled?: Add reimbursable or billable expenses separately from the project or milestone charge. Expenses are included in the subtotal before discounts and tax.
Is tax calculated before or after a discount?: Tax is applied after the discount, on the discounted subtotal (charge + expenses − discount). Confirm the tax rules that apply in your jurisdiction.
What does Create this invoice do?: It opens the Invoice Generator with your project or milestone charge, expenses, discount, tax, deposit, and currency prefilled so you can review and send the invoice.

For time-based work, use the Hourly Invoice Calculator. Set your rates with the Freelance Rate Calculator. For general line-item totals, try the Invoice Calculator or price deliverables with the Markup Calculator. Browse more under Create & Price. Industry guides for freelancers, consulting, marketing agencies, and contractors. Ready to bill? Create an invoice.