A 30-40-30 progress invoice schedule is a realistic way to structure billing on a small remodel: a contractor has a $24,000 bathroom and laundry room renovation and wants to bill it with a 30% deposit, 40% progress draw, and 30% final payment. The customer already accepted the estimate, and the contractor wants invoices that clearly show what has been paid, what milestone has been reached, and what is due now.
This kind of billing is common because it balances cash flow for both sides. The contractor gets upfront money to schedule the job and buy materials, the customer pays against visible progress, and the final invoice ties to completion instead of becoming one giant surprise.
If you want the broader billing framework first, read Contractor Invoice Template: How to Bill Professionally and Get Paid Faster. This article focuses on one progress billing schedule and shows how the math and invoice wording should work.
You can also compare the layout against the sample contractor invoice PDF.
The job scenario
Contract amount:
- Original approved estimate total: $24,000
- Billing schedule: 30% deposit, 40% progress invoice, 30% final invoice
- Change orders: none in the base example
- Tax treatment: excluded here for simplicity
Milestones:
- 30% deposit due at acceptance to reserve schedule and purchase initial materials
- 40% progress invoice due after demolition, rough framing adjustments, plumbing rough changes, and material delivery
- 30% final invoice due at substantial completion
This is a good fit for a remodel that lasts more than a few days but does not need a complex monthly draw schedule.
Step 1: Calculate the payment amounts
Start with the contract total.
Deposit:
$24,000 x .30 = $7,200
Progress invoice:
$24,000 x .40 = $9,600
Final invoice:
$24,000 x .30 = $7,200
Total scheduled billing:
$7,200 + $9,600 + $7,200 = $24,000
The math is simple, but the invoice presentation matters. Customers should never have to calculate what stage they are on.
Step 2: Issue the deposit invoice clearly
Even the first invoice should reference the estimate and the payment schedule.
Example deposit invoice:
| Description | Amount |
|---|---|
| 30% deposit due upon acceptance of Estimate #602 | $7,200 |
| Amount due | $7,200 |
Suggested reference line:
- Deposit invoice for Estimate #602, bathroom and laundry remodel at 814 Cedar Lane
Suggested terms:
- Deposit due before scheduling and material ordering
- Balance billed per contract payment schedule
Once the deposit is paid, record the payment date and amount.
Step 3: Build the 40% progress invoice
Assume the job reaches the agreed midpoint milestone:
- Demo complete
- Rough plumbing revisions complete
- Framing corrections complete
- Tile and fixture materials delivered
- Job ready for substrate and finish phase
The progress invoice should say exactly that.
Example progress invoice table:
| Description | Amount |
|---|---|
| 40% progress billing per approved payment schedule | $9,600 |
| Deposit received on 05/03/2026 | -$7,200 |
| Total previously paid | $7,200 |
| Amount due this invoice | $9,600 |
Notice what is not happening here: you are not subtracting the deposit from the current progress invoice amount. The deposit was its own invoice and its own payment. The progress draw is due in full because it is the next scheduled billing event, not a running balance statement.
A cleaner full summary version looks like this:
| Description | Amount |
|---|---|
| Original contract amount | $24,000 |
| Payments received to date | -$7,200 |
| Current invoice: 40% progress draw | $9,600 |
| Total paid plus current draw if paid | $16,800 |
That gives the customer context.
Step 4: Build the final 30% invoice
At substantial completion, the final invoice should show the full contract, total payments received, and balance due now.
Example final invoice:
| Description | Amount |
|---|---|
| Original contract amount | $24,000 |
| Deposit received 05/03/2026 | -$7,200 |
| Progress payment received 05/17/2026 | -$9,600 |
| Final payment due at substantial completion | $7,200 |
| Balance due | $7,200 |
This is the moment where contractors often make invoices messy. The customer should not have to remember prior draws or trust that you did the subtraction correctly.
What if there is an approved change order?
Progress billing gets even cleaner when change orders are shown separately.
Example:
- Original contract: $24,000
- Approved change order for upgraded tile niche and extra electrical: $1,350
- Revised contract total: $25,350
Updated final invoice could look like this:
| Description | Amount |
|---|---|
| Original contract amount | $24,000 |
| Approved change order CO-602-1 | $1,350 |
| Revised contract total | $25,350 |
| Payments received to date | -$16,800 |
| Balance due | $8,550 |
That is much cleaner than burying the extra work inside a vague final balance.
Suggested wording for progress invoice milestones
Good milestone descriptions include both the billing percentage and the completed scope.
Examples:
- 40% progress billing due upon completion of demolition, rough corrections, and primary material delivery
- Final 30% balance due upon substantial completion and walkthrough
- Deposit due upon acceptance to reserve schedule and purchase initial materials
Avoid vague phrases like second payment due now.
Common mistakes with 30-40-30 billing
1. Not defining the milestone before the job starts
Customers should know what triggers the 40% invoice before work begins.
2. Sending progress invoices with no reference to the contract
Tie every invoice back to the approved estimate.
3. Failing to show payment history
Every invoice after the first should show what has already been paid.
4. Billing extra work without a change order
Keep approved contract revisions separate from standard progress billing.
5. Using vague due dates
Say due June 2, 2026, not due next week.
Sample progress invoice table you can reuse
Here is a simple structure for the second draw:
| Description | Amount |
|---|---|
| Original contract amount | $24,000 |
| Deposit received | -$7,200 |
| Current invoice: 40% progress draw | $9,600 |
| Amount due now | $9,600 |
And for the final invoice:
| Description | Amount |
|---|---|
| Original contract amount | $24,000 |
| Deposit received | -$7,200 |
| Progress payment received | -$9,600 |
| Final balance due | $7,200 |
How Estimation Builder helps with progress billing
Progress billing breaks down when the estimate, change orders, invoice math, and payment tracking all live in different places. Estimation Builder helps by generating invoices directly from accepted estimates or approved change orders, then tracking payment dates and amounts in the same job record. Because it is mobile-friendly, you can send a progress invoice from the jobsite instead of waiting to get back to the office.
That is particularly useful when you need to show the customer exactly what was billed last time and what is due now.
Final takeaway
Progress Invoice Example: 30-40-30 Remodel Payment Schedule works because it is simple, predictable, and easy to document. On a $24,000 remodel, that means a $7,200 deposit, a $9,600 progress draw, and a $7,200 final invoice, each tied to a clear milestone and shown with payment history.
If you want a clean formatting reference, download the sample contractor invoice PDF. If you want accepted estimates, progress invoices, change orders, and payment tracking in one place, start Estimation Builder's 30-day free trial for $75/month after the free trial. No credit card is required.