Calculate the total amount to put on your freelance invoice including VAT, discounts, and deposits already paid.
Invoicing, Tax & Tools
Bill clients, track time, and file taxes — software built for the self-employed
A professional invoice is more than a payment request — it's a legal document that protects both you and your client. Getting the maths right, especially with VAT and deposits, prevents disputes and delays.
The calculation order matters: apply discounts first (to the subtotal), then calculate VAT on the discounted amount, then deduct any deposit already paid. Getting this order wrong — for example, calculating VAT on the pre-discount amount — will overcharge the client.
For freelancers not registered for VAT, the invoice total is simply subtotal minus deposit. For VAT-registered freelancers, both the net and gross amounts must be clearly stated, along with your VAT registration number.
Use invoicing software (FreshBooks, Bonsai, Wave, or even basic tools like Invoice Ninja) to automate this. Manual invoice calculation is fine for occasional use, but automation reduces errors and tracks payment status automatically — critical for cash flow management.
Invoice
A formal document sent to a client requesting payment for goods or services rendered, detailing the amounts, descriptions, and payment terms.
VAT
Value Added Tax — a consumption tax added to the price of goods and services at each stage of production, collected by businesses and remitted to tax authorities.
Late Payment Interest
Interest charged on overdue invoices, calculated as an annual percentage of the outstanding amount applied to the number of days past the due date.
List each service or deliverable as a separate line item with a description and amount. For example: 'Website design — 20 hours × $75/hr = $1,500' or 'Monthly retainer — October 2024 = $2,000'.
Discount is typically applied to the subtotal first, then VAT is calculated on the discounted amount. This calculator follows that convention.
Show the full project amount as the subtotal. List the deposit paid as a deduction. This gives the client a clear picture of the total project value and what they owe now. Example: Project total £3,000 − 50% deposit already paid (£1,500) = Due now: £1,500.
Bank transfer (cheapest, no processing fee), credit card via Stripe or PayPal (convenient, 2.9%+ fee), and for international clients: Wise business account details in the client's local currency (saves on conversion fees).
VAT Calculator
Add or remove VAT from freelance invoice amounts. Works for UK (20%), EU rates, and any custom VAT percentage.
Late Payment Calculator
Calculate the interest you can charge on overdue invoices under late payment law.
Client Profitability Calculator
Calculate the true profitability of a client relationship accounting for all hours spent — billable and non-billable.