Freelance Invoice Template

Freelancers use several pricing strategies:

1. Hourly Rate
Most straightforward - track time and bill hourly. Easy to adjust for scope changes but can limit earnings potential if you become more efficient.

2. Project-Based (Flat Fee)
Fixed price for defined deliverables. Client knows total cost upfront. More profitable if you work efficiently but risky if scope is unclear.

3. Day Rate
Fixed fee for a full day's work (typically 6-8 hours). Common for ongoing client relationships or on-site work.

4. Milestone-Based
Break projects into phases with payment tied to completion of each milestone. Balances cash flow with project progress.

professional invoices should include:

• Invoice number (unique identifier)
• Invoice date
• Payment due date
• Your business name (or personal name if sole proprietor)

• Full name or business name
• Address
• Email
• Phone number
• Website (optional)

• Client or company name
• Billing contact name
• Address
• Email

• Project name or description
• Project reference number
• Invoice period covered
• Milestone or phase completed

• Description of work performed
• Date of work (if hourly)
• Hours worked or quantity
• Rate (hourly, daily, or fixed)
• Line item subtotal

• Reimbursable expenses
• Rush fees if applicable
• Revision charges beyond scope
• License fees or third-party costs

• Subtotal
• Tax (if applicable based on location)
• Total amount due
• Payment methods accepted
• Bank details or payment links

• Payment terms (Net 15, Net 30, etc.)
• Late payment policy
• Rights and usage terms
• Thank you message

Calculate your rates based on these factors:

Calculate Your Base Rate
1. Determine your desired annual income
2. Subtract business expenses (20-40% of income)
3. Divide by billable hours per year (1,200-1,500 typical)
4. This is your minimum hourly rate

Example: $80,000 income ÷ 1,500 hours = $53/hr minimum

• Check industry averages for your skill level
• Review freelance platform rates
• Ask peers (if comfortable)
• Consider your location and target clients

• Beginner (0-2 years): Market rate × 0.6-0.8
• Intermediate (2-5 years): Market rate × 0.8-1.2
• Expert (5-10 years): Market rate × 1.2-1.8
• Specialist (10+ years): Market rate × 1.8-3.0

• Booked more than 80% capacity for 2+ months
• Skill level or experience has increased
• Taking on more complex projects
• Annually (cost of living adjustment)

Structure payment terms to protect yourself:

• New clients: 50% deposit, 50% on completion
• Ongoing clients: Net 15 or Net 30
• Large projects: 33% deposit, 33% at midpoint, 34% on completion
• Monthly retainers: Due on 1st of month, auto-billed

• New client relationships (50% minimum)
• Projects over $2,000 (at least 33%)
• Clients with payment delays in the past

• State payment terms clearly on invoice
• Add late fee (1.5% per month is common)
• Send reminder 3 days before due date
• Follow up immediately on overdue invoices
• Stop work on other projects if payment is 30+ days late

• Bank transfer/ACH (lowest fees)
• Credit card (instant, but 2-3% fees)
• PayPal (convenient, 3-4% fees)
• Check (slowest, but some clients prefer it)

• 25% on signing
• 25% at design approval
• 25% at draft delivery
• 25% on final completion