Free Proforma Invoice Generator

What a proforma invoice is and when to use it

A proforma invoice is a good-faith estimate of a sale, sent to a customer before you deliver goods or services and before payment is due. It looks like a regular invoice and lists the same products, quantities, and prices, but it isn't a demand for payment and doesn't record a completed sale in your books. US freelancers, contractors, and small businesses use a proforma invoice to quote a project, confirm scope and pricing before starting work, request a deposit, or give a buyer a document to arrange financing or budget approval. It's also common in international shipping, where customs needs a declared value before goods arrive. Send one whenever you want the customer to review and approve the numbers before anything becomes final or money changes hands.

What to include on a proforma invoice

A proforma invoice carries most of the same details as a final invoice, with a few key differences. Clearly label the document "Proforma Invoice" so no one mistakes it for a payable bill. Include your business name, address, and contact info, plus your Tax ID or EIN if you use one; the customer's name and billing details; a reference number; and the issue date along with a validity period (for example, "valid for 30 days"), since quoted prices can change. Itemize each product or service with a description, quantity, unit price, and line total, then show the subtotal, estimated sales tax if it applies in your state, and the grand total in USD. Add expected delivery or completion timing, your proposed payment terms, accepted payment methods, and any deposit you're requesting.

How it differs from a regular invoice or receipt

The difference is timing and purpose. A proforma invoice comes before the sale: it estimates what a transaction will cost so the buyer can approve it, and it has no accounting or legal effect as a payment demand. A regular (final) invoice comes after you agree to proceed or deliver; it's an official request for payment, records the sale, and is what you book as revenue and report at tax time. A receipt comes last, confirming the customer has actually paid. Because a proforma isn't a tax document, you shouldn't use it to claim income or file sales tax. Once the customer approves the proforma and you're ready to collect, convert it into a numbered final invoice with the same line items so your records stay consistent and audit-ready.

How to create a proforma invoice free on this page

You don't need accounting software to send a polished proforma invoice. Use the generator on this page to build one in a few minutes, completely free and with no signup. Enter your business and customer details, add a line for each product or service with its quantity and unit price, and the subtotal, estimated tax, and total calculate as you type in USD. Set a reference number, the issue date, and a validity period, then add your proposed payment terms, any deposit request, and notes such as expected delivery timing. Make sure the document is clearly marked "Proforma Invoice," then download a professional PDF you can email straight to your customer. When they approve it, reuse the same details to issue a matching final invoice.

Is a proforma invoice a legally binding demand for payment?

No. A proforma invoice is a preliminary, good-faith estimate sent before a sale is finalized, not an official request for payment. It tells the customer what a transaction will cost so they can approve it, but it doesn't create a payment obligation or record a completed sale. Once both sides agree to proceed, you issue a final invoice, which is the document that actually requests payment and records the sale.

Can I use a proforma invoice for my accounting or sales tax?

No. Because a proforma invoice isn't a final, payable document, you shouldn't book it as revenue or use it to report or remit sales tax. It's a quote, not a tax record. When the customer approves it and the sale becomes real, convert it into a numbered final invoice with the same line items. That final invoice is what you record in your books and use for tax purposes.

What's the difference between a proforma invoice and a quote or estimate?

They're very similar in purpose, and many small businesses use the terms loosely. Both give a customer expected pricing before a sale. A proforma invoice is usually more formal and detailed, laid out like a real invoice with line items, totals, and terms, which makes it useful for deposit requests, budget approvals, or customs. A quote or estimate can be a simpler, less structured price summary. Either way, neither is a demand for payment.

Should I charge sales tax on a proforma invoice?

Show estimated sales tax only if the sale would actually be taxable in your state, and label it as an estimate. Since a proforma isn't a final tax document, you don't remit tax based on it. Including the estimated tax helps the customer see the full expected cost in USD upfront. When you issue the final invoice, confirm the correct tax amount then. Check your state's rules or ask an accountant if you're unsure whether your sale is taxable.

How do I turn a proforma invoice into a final invoice?

Once the customer approves the proforma and you're ready to bill, create a new document clearly labeled "Invoice" rather than "Proforma Invoice," give it a unique sequential invoice number, and carry over the same line items, quantities, and prices. Update the issue date, add a due date and payment terms, and confirm the sales tax. On this page you can reuse the same details to generate the final invoice and download it as a PDF, keeping your records consistent.