Invoice Calculator
Add up line items, apply a discount and sales tax in the right order, and see the balance due after a deposit.
Your details
Line items
Adjustments
Many professional services are exempt — check your state
This calculator runs entirely on your device. Nothing you enter is uploaded, stored, or sold. How this works
Balance due
$5,300.00
$6,800.00 invoice total less a $1,500.00 deposit
Includes your inputs, the full breakdown, and every row of the table.
Subtotal
$6,800.00
Discount
None
Sales tax
None
Invoice total
$6,800.00
- Subtotal
- $6,800.00
- Invoice total
- $6,800.00
- Deposit paid
- − $1,500.00
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Design work | 40 | $95.00 | $3,800.00 |
| Development | 25 | $120.00 | $3,000.00 |
What this means
- Discount is applied before sales tax, which is the standard treatment — tax is charged on what the customer actually pays, not the list price.
- Shipping and reimbursed expenses are taxable in some states and not others. The calculation here taxes them along with the goods; adjust if your state exempts them.
- No sales tax is applied. Most professional services are exempt in most states, but the rules vary considerably and several states do tax specific services. Check before assuming.
How the invoice calculation works
An invoice total is straightforward arithmetic with one detail that matters: the order of operations. Discounts come off before sales tax is calculated, because tax is owed on the price the customer actually pays. Applying tax to the full amount and then discounting overcharges the customer and leaves you remitting tax you never collected.
Sales tax on services is the part that trips up freelancers most often. The default assumption in most of the US is that professional services are exempt while goods are taxable, but that is a generalisation with real exceptions — several states tax specific categories of service, and a few tax services broadly. Digital products and software subscriptions are treated inconsistently across states. If you are selling anything other than plain consulting hours, it is worth checking rather than assuming.
Deposits are a payment rather than a discount, so they come off the total after tax has been calculated. A deposit taken before work begins is the single most effective protection a small business has against non-payment, and asking for a third up front on project work is entirely standard.
Frequently asked questions
Do I apply the discount before or after tax?
Before. Sales tax is calculated on the discounted amount, because that is what the customer pays and what the tax is owed on. Taxing the full price and discounting afterwards overstates the tax and leaves you liable for the difference.
Do freelancers charge sales tax?
Usually not on professional services, but it depends on the state and the service. Most states exempt consulting, design, and writing while taxing tangible goods, though several tax specific services and the treatment of software and digital products varies widely. Check your state's rules rather than relying on the general pattern.
Is shipping taxable?
It varies by state. Some tax delivery charges as part of the sale, others exempt them when separately stated on the invoice, and a few make the treatment depend on whether the goods themselves are taxable. This calculator includes shipping in the taxable base, which is the more common treatment.
How much deposit should I ask for?
A third up front is a common standard for project work, with the balance on delivery or split across milestones. For a new client or a long project, weight it further toward the front. The deposit is not just cash flow — it is the clearest signal you will get about whether a client intends to pay at all.
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Disclaimer. This calculator is provided for general information and educational purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Results are estimates based on the inputs you provide and the assumptions described above. Confirm any figure with a qualified professional before acting on it.