For independent contractors and small service businesses
Contractor Invoice Generator
Create invoices for contractor labor, materials, and other job costs.
- Estimate
- Timesheet
- Invoice
- Receipt
How it works
From job estimate to paid invoice
-
Estimate the job
Estimate expected labor, materials, equipment, and other job costs before work starts.
-
Complete the work
The final invoice may differ from the estimate if labor, materials, or scope change and the customer agrees.
-
Track labor
If you bill by time, record the dates, work performed, and hours before preparing the invoice.
-
Invoice the customer
List labor, materials, and other agreed charges for the completed work.
-
Provide a receipt
After payment is received, a receipt documents the amount paid.
Estimate example
Bathroom repair estimate
Amounts are examples only—not recommended contractor rates.
Bathroom Repair
| Description | Hours / Qty | Rate | Amount |
|---|---|---|---|
| Labor | 6 | $85 | $510.00 |
| Materials | 1 | $240 | $240.00 |
| Equipment | 1 | $75 | $75.00 |
| Estimated total | $825.00 | ||
Before the work
Estimate vs. quote
An estimate provides an expected cost. A quote generally communicates a defined price for the proposed work. Neither document is automatically a contract.
See Estimate vs. Quote for the distinction.
During the job
Complete the work
The invoice you send after the job may differ from the original estimate when the customer and contractor have agreed to changes in labor, materials, scope, or other charges.
Billable time
Track hours worked
If labor is billed by time, record the dates, work performed, and hours worked before preparing the invoice. Creating a timesheet does not copy those hours into the Invoice Generator.
| Date | Description | Hours |
|---|---|---|
| May 12, 2026 | Site prep and removal | 3 |
| May 13, 2026 | Repair work | 4 |
| May 14, 2026 | Finish and cleanup | 1 |
Billing
Invoice the customer
A contractor invoice can show labor, materials, equipment, subcontracted work, travel or service charges where agreed, other job costs, and taxes or discounts where the Invoice Generator supports those fields.
Worked example
Example contractor invoice
Amounts are examples only—not a recommended contractor rate.
Home Repair
| Description | Hours / Qty | Rate | Amount |
|---|---|---|---|
| Labor | 8 | $90 | $720.00 |
| Materials | 1 | $385 | $385.00 |
| Equipment rental | 1 | $125 | $125.00 |
| Total | $1,230.00 | ||
Billing methods
Ways to bill contractor work
Labor and materials
List labor and materials separately so the customer can see how the invoice total was calculated. Example: 10 hours × $80 = $800 labor, plus $450 materials, for a $1,250 total. Itemizing this way is not legally required.
Hourly contractor work
Hours worked × hourly rate = labor charge. Example: 12 hours × $75/hour = $900. Record hours on a timesheet, then enter them on the invoice.
Fixed-price jobs
A contractor may agree to one price for a defined job rather than billing based on hours. Example: fence repair, $2,400. List the job and agreed amount on the invoice.
Invoicing for a deposit
Some jobs include an agreed deposit before work begins or materials are purchased. Example: an $8,000 job with a 25% deposit of $2,000 and $6,000 remaining. That split is an example, not a recommended term.
Staged payments
For a longer job, create a separate invoice for each agreed stage. Example: a $12,000 job billed as $3,000, $5,000, and $4,000. The Invoice Generator does not track stages for you.
Invoicing as a subcontractor
A subcontractor can invoice the contractor or business that hired them: identify the job, describe the work completed, list hours or agreed fees, add approved expenses or materials, and show the total and payment terms.
Hourly work
Billing contractor work by the hour
If you bill labor by the hour, use the hours worked and the agreed hourly rate.
Hours worked × Hourly rate = Labor charge
12 hours × $75/hour = $900
Payment
Set the payment due date
A due date can be due on receipt, Net 15, Net 30, or a specific calendar date. None of these is standard for every contractor job.
If payment is late
Late payments
If your agreement permits a late fee, use the Late Payment Fee Calculator to calculate the amount based on the terms you entered.
Optional
Early payment discounts
If a contractor has agreed to offer a discount for early payment, the calculator can determine the discount and resulting payment amount. Offering a discount is a choice, not a recommendation.
After payment
Provide a receipt after payment
After payment is received, a receipt can document the amount paid. An invoice requests payment. A receipt documents that payment was received.
Suppliers
Purchase orders
Contractors may use a purchase order when ordering agreed goods or services from a supplier. This is not a procurement, inventory, or approval system.
Invoice contents
What should a contractor invoice include?
A contractor invoice commonly includes the items below. Not every item is legally required.
- Contractor or business name
- Customer information
- Invoice number
- Invoice date
- Payment due date
- Job or project description
- Labor
- Materials
- Equipment or other charges
- Applicable taxes
- Discounts where applicable
- Total due
- Payment terms
- Notes
Steps
How to create a contractor invoice
- Add your business and customer information.
- Identify the job or project.
- List the labor performed.
- Add materials and other agreed charges.
- Add applicable taxes or discounts.
- Set the payment due date and terms.
- Review the total and create the invoice.
Documents
Contractor invoice vs. estimate, quote, and timesheet
- Contractor invoice vs. estimate
- An estimate shows the expected cost before the job is complete. An invoice requests payment for the work being billed. Create an estimate in the Estimate Generator.
- Contractor invoice vs. quote
- A quote communicates the proposed price before the work. An invoice requests payment for work being billed. Create a quote in the Quote Generator.
- Contractor invoice vs. timesheet
- A timesheet records hours worked. An invoice converts those hours and the agreed rate into an amount due. Timesheet Generator → Invoice Generator.
Terms
Contractor vs. independent contractor
"Contractor" can describe a business or individual hired to perform work. "Independent contractor" generally refers to a self-employed person or business providing services rather than working as an employee.
Worker classification depends on the actual working relationship and applicable law, not the wording on an invoice.
Related
Contractor vs. construction invoice
Contractor invoices cover a broad range of jobs and services for an individual contractor or small service business. Construction invoices are specifically used for construction projects and may involve larger project stages or progress billing.
See Construction for construction-project billing.
Billing a job?
Estimate → Track Labor → Invoice → Receipt
- Fixed-price work
- Estimate/Quote → Invoice → Receipt
- Hourly work
- Timesheet → Invoice → Receipt
Toolkit
Tools for contractors
Early Payment Discount Calculator
Calculate an agreed early-payment discount.
Resources
Contractor billing resources
Estimate vs Quote
Estimate vs quote explained simply. Learn what each document means, when to use it, how they lead to an invoice, and which to send your customer first.
Read guide
Invoice Deposits
Learn when and how to request invoice deposits and partial payments, how much to ask for, and sample wording to get paid upfront without losing clients.
Read guide
Invoice Payment Terms
Learn how invoice payment terms like Net 30, Net 15, and Due on Receipt work, how to choose the right ones, and how to get paid faster—with examples.
Read guide
Invoice Late Fees
Learn how to charge invoice late fees the right way—legal basics, fair rates, wording examples, and calculations that get you paid without losing clients.
Read guide
How to Price Your Services
Learn how to price your services with confidence—pricing models compared, a step-by-step rate formula, worked examples, and how to raise prices.
Read guide
Purchase Order vs Invoice
Purchase order vs invoice explained simply: the buyer sends the PO to authorize a purchase, the seller sends the invoice to request payment.
Read guideFAQ
Frequently asked questions
- How do I create a contractor invoice?
- Add your business and customer information, identify the job, list labor, materials, and other agreed charges, add applicable taxes or discounts, set the due date, and create the invoice in the Invoice Generator.
- What should a contractor invoice include?
- A contractor invoice commonly includes the contractor or business name, customer information, invoice number and date, payment due date, a job description, labor, materials, other charges, applicable taxes or discounts, the total due, payment terms, and notes. Not every item is legally required.
- How do I invoice for labor and materials?
- List labor and materials as separate line items so the customer can see how the total was calculated. Example: 10 hours × $80 = $800 labor, plus $450 materials, for a $1,250 total. Those amounts are an example, not a recommended rate.
- Can contractors invoice by the hour?
- Yes. Multiply hours worked by the agreed hourly rate and list that as a labor line. A timesheet can record the dates, work performed, and hours before you create the invoice. The Timesheet Generator does not copy those hours into the Invoice Generator.
- Can a contractor request a deposit?
- A contractor and customer may agree to a deposit or staged payments. Create a separate invoice for the amount that is due. This page does not recommend a deposit percentage.
- What is the difference between an estimate and a contractor invoice?
- An estimate shows the expected cost before the job is complete. An invoice requests payment for the work being billed.