Progress Invoice Template for Milestone Billing and Construction Draws
Bill completed work without confusing the client. Use this progress invoice template to show contract value, previous billing, current amount due, retainage, and remaining balance.
Create Progress Invoice FreeProgress Invoice Template Answer
A progress invoice bills only the completed portion of a larger project.
A progress invoice is used when a project is billed in stages, milestones, or draws. Instead of asking for the full contract amount at once, the invoice shows what has been completed to date, what was already billed, what is due now, and what remains.
The Free Progress Invoice Template
This fictional USD example uses a $24,000 original contract and a $1,200 approved change order. It assumes 10% retainage on all work, no retainage releases, no tax, no stored materials, and no advance payments. These are example assumptions, not required contract terms or recommended rates.
- Invoice title
- Progress Invoice
- Invoice number
- PI-2026-004
- Project
- Office renovation phase 2
- Contract amount
- $24,000.00
- Billing period
- August 1-21, 2026
- Invoice date
- August 21, 2026
- Payment terms
- Net 15
- Due date
- September 5, 2026
| Phase or milestone | Scheduled value | Complete | Value to date |
|---|---|---|---|
| Electrical rough-in | $7,500.00 | 80% | $6,000.00 |
| Framing and drywall | $9,000.00 | 60% | $5,400.00 |
| Permit coordination | $1,500.00 | 100% | $1,500.00 |
| Finishes and closeout | $6,000.00 | 0% | $0.00 |
| Change order 02: added outlets | $1,200.00 | 100% | $1,200.00 |
| Total including change order | $25,200.00 | 55.95% | $14,100.00 |
Progress Billing Summary Example
The $1,200 change order is already in the $14,100 completed value. Subtract $8,100 of previous gross billing to get $6,000 of new work. A 10% holdback on that new work is $600, leaving $5,400 due for this invoice.
| Original contract value | $24,000.00 |
|---|---|
| Approved change orders | $1,200.00 |
| Adjusted contract value | $25,200.00 |
| Value completed to date | $14,100.00 |
| Previously billed before retainage | $8,100.00 |
| New work billed this period | $6,000.00 |
| Retainage held this period (10%) | $600.00 |
| Total due now | $5,400.00 |
| Unbilled work remaining | $11,100.00 |
| Retainage previously held | $810.00 |
| Total retainage held to date | $1,410.00 |
Unbilled work is $25,200 - $14,100 = $11,100. Retainage is separate: $810 held previously plus $600 this period equals $1,410. With no further changes, the remaining work plus currently held retainage is $12,510; it is not all payable now. Track any unpaid prior invoices separately instead of including them as new work.
Retainage and release terms depend on the agreement and applicable rules. See Procore's retainage documentation for an explanation of amounts withheld and released. This sample is not an AIA payment application or a substitute for required project forms.
Required Elements of a Progress Invoice
A normal invoice lists what is due. A progress invoice also needs to prove how the current amount connects to the larger contract.
Original contract amount
Shows the baseline project value before change orders.
Approved change orders
Keeps added scope separate from the original contract.
Work completed to date
Shows cumulative progress, usually as a dollar value or percentage.
Previous invoices
Prevents the client from paying twice for work already billed.
Current amount due
The amount the customer owes for this billing period.
Retainage
Optional holdback amount kept until final completion or approval.
Remaining balance
Shows how much of the contract remains unbilled after this invoice.
Show the math
Separate contract value, completed value, previous invoices, and current amount due.
Match approvals
Only bill milestones, draws, or change orders the client has approved.
Track remaining work
Include the balance left after this progress invoice so the project record stays clear.
When to Use Progress Invoice Templates
| Use case | How to bill it |
|---|---|
| Construction draws | Bill completed labor, materials, change orders, and retainage by phase. |
| Milestone projects | Invoice when discovery, design, build, or delivery milestones are approved. |
| Agency retainers | Bill partial deliverables while keeping the remaining monthly scope visible. |
| Consulting engagements | Invoice completed project phases before the full engagement is finished. |
How to Create a Progress Invoice
Start with the contract value, project name, client details, invoice number, and billing period.
List each phase, milestone, or draw with the scheduled value and percent completed.
Include completed, approved change-order work in the value to date once; do not add it again in the summary.
Subtract previous gross billing, before retainage, so the current invoice only bills new progress.
Apply retainage if your agreement requires a holdback.
Show total due now and remaining balance after this progress invoice.
Progress Invoice vs Deposit Invoice vs Final Invoice
A deposit invoice collects money before or at the start of work. A progress invoice bills approved work completed during a phase. A final invoice closes the project and bills the remaining balance.
If you need a standard invoice instead, start with the free invoice generator. For contractor-specific billing, compare the contractor invoice template and construction invoice template.
Progress Invoice Template FAQ
What is a progress invoice?
A progress invoice bills a customer for a completed portion of a larger project instead of waiting until the whole project is finished. It should show contract value, work completed, previous billing, current amount due, and remaining balance.
What should a progress invoice template include?
Include project name, client details, invoice number, billing period, original contract amount, change orders, percent complete, previous invoices, current invoice amount, retainage if applicable, total due, and remaining balance.
How do you calculate a progress invoice?
For the example on this page, subtract previous billing before retainage from completed value including approved change-order work: $14,100 minus $8,100 equals $6,000 of new work. Subtract the $600 holdback for this period to get $5,400 due now. Do not add the $1,200 change order again because it is already included in completed value.
Is unbilled work the same as retainage or unpaid invoices?
No. In this example, $11,100 is work not yet billed, while $1,410 is cumulative retainage on work already billed. Any overdue previous invoice is a separate receivable, not new progress. Keep these amounts separate so the client can reconcile current billing without paying for the same work twice.
Is a progress invoice the same as a deposit invoice?
No. A deposit invoice asks for upfront payment before or at the start of work. A progress invoice bills for work completed during a phase, milestone, or billing period.
Can I use a progress invoice for construction billing?
Yes. Construction progress billing commonly uses project phases, draw schedules, change orders, retainage, previous payments, current amount due, and remaining contract balance.
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Describe the contract value, completed work, previous invoices, and retainage. Eonebill turns it into a professional invoice you can send to the client.
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