Interior Design Invoice Template: Fees, Markups & FF&E

Quick answer: An interior design invoice template should separate design fees from purchased goods. Show the fee basis (flat, hourly or percentage of cost), list each FF&E item with vendor, quantity, net cost and markup, add freight and installation, apply sales tax to taxable goods, then subtract deposits or retainers to reach the balance due.

Interior designers often run two businesses at once: a professional service that sells ideas, drawings and project management, and a purchasing operation that buys furniture, lighting and finishes on the client's behalf. The two have different economics, different tax treatment and different cash flow risk. A clear interior design invoice template keeps them apart so the client understands what they are paying for and you can recover every cost you carry.

This guide explains the main fee structures, how to invoice procurement and FF&E with or without markup, how deposits and retainers flow through the billing cycle, and what a complete invoice looks like with the arithmetic shown.

How interior designers charge

Interior design fees are usually set in the design agreement and fall into a few broad models. Many studios combine two, such as a flat design fee plus a markup on purchases. The amounts below are left out on purpose; rates depend heavily on market, experience and project type.

Fee model	How it works	How it appears on the invoice
Flat design fee	A fixed price for defined phases or deliverables	One line per phase or installment, with the scope named
Hourly	Time billed at one or more rates, often with a retainer	Hours x rate by task or team member, with dates
Percentage of cost (cost-plus)	Fee calculated as a percentage of goods or construction cost managed	Percentage x cost base, naming the purchases or budget it covers
Per square foot	Fee based on the area designed, common in commercial work	Square feet x rate, with the space described
Procurement markup	Designer buys at trade price and resells at a markup	Item lines at client price, or net cost plus a markup line
Hybrid	For example, flat design fee plus hourly for changes plus markup on FF&E	Separate sections for fees, change work and purchases

Whichever model you use, the agreement should say how changes are billed. Clients often ask for "one more option" or a new room partway through. A clear rule for out-of-scope requests, billed hourly or by a written change order, prevents the flat fee from quietly expanding. Our guide to scope creep and change orders includes wording you can adapt.

Billing design phases

Many designers break a flat or hourly project into phases: initial consultation, concept design, design development, procurement and installation. Invoicing at the start or end of each phase spreads cash flow across the project. If you work this way, see our guide to milestone payments for how to tie each invoice to a defined deliverable rather than a calendar date.

Procurement, FF&E and markup

FF&E means furniture, fixtures and equipment. In residential design it usually covers sofas, tables, beds, lighting, rugs, window treatments, art and accessories. In commercial work it can include office systems, seating and specialty equipment. Designers often buy these items through trade accounts at a discount off retail and resell them to the client.

There are three common ways to price procurement:

• Net cost plus markup. The client pays the trade price plus a stated percentage. The invoice can show both figures or just the marked-up price.
• Retail or list price. The client pays the published retail price, and the designer keeps the difference from the trade price. The contract should disclose this.
• Net cost only. The client pays the trade price with no markup, and the designer earns through higher design fees. Some designers prefer this for transparency.

Be precise about markup versus margin. A 30% markup on a $1,000 net cost gives a $1,300 client price, which is a margin of about 23% on the selling price, not 30%. If your contract says "markup", calculate on cost. Our markup vs margin guide works through the formulas in both directions.

Freight, receiving and installation

The price of a sofa is rarely the full cost of getting it into the room. Freight from the vendor, receiving and inspection at a warehouse, storage while other items arrive, white-glove delivery and installation can add up. Decide in your agreement whether these are billed at actual cost, marked up, or included in the item price. Then list them as separate lines. A client who sees "Sofa, $6,500" and later "Freight and delivery, $640" with no prior warning will feel surprised; one who saw both lines on the purchase approval will not. For pass-through costs in general, the guide to invoicing reimbursable expenses covers documentation and receipts.

Deposits, retainers and cash flow

Procurement exposes a design studio to real cash risk. Vendors often require full payment or a large deposit when an order is placed, custom upholstery can take months to arrive, and special orders are usually non-returnable. If the client cancels or delays payment, the designer may be left holding the cost.

A typical billing flow that reduces that risk looks like this:

1. Design retainer at signing. Issue a retainer invoice for the agreed amount, applied to design fees later.
2. Purchase approval. Send the client a proposal or proforma invoice listing each item, price, lead time and the deposit required.
3. Procurement deposit. Collect payment for the approved items, in full or a large percentage, before placing orders. A deposit invoice keeps this separate from design fees.
4. Delivery and installation invoice. Bill the remaining balance on goods, freight, installation and any final design fees, and show all deposits as payments received.

Hourly fees are usually billed monthly alongside these, with the retainer drawn down or held until the end, as your contract specifies.

Sample interior design invoice

The following is an illustrative final invoice for a living room project. The figures are examples only. The studio charges a flat design fee for the room, bills change requests hourly, and marks up FF&E by 25% on net cost. The client paid a $1,500 design retainer at signing and a $9,000 procurement deposit when the furniture was ordered. In this example the state taxes the sale of furnishings at 7% but not design services; your state may differ.

Description	Qty	Unit price	Amount
Living room design, concept through installation (flat fee, final 50%)	1	$2,000.00	$2,000.00
Additional design time, reading nook revision (hourly)	3	$125.00	$375.00
Sofa, custom upholstery (net $4,800.00 + 25% markup)	1	$6,000.00	$6,000.00
Lounge chairs (net $1,200.00 each + 25% markup)	2	$1,500.00	$3,000.00
Area rug, 9 x 12 (net $1,600.00 + 25% markup)	1	$2,000.00	$2,000.00
Freight and white-glove delivery (at cost)	1	$480.00	$480.00
Subtotal			$13,855.00
Sales tax, 7% on furnishings ($11,000.00)			$770.00
Less design retainer applied			-$1,500.00
Less procurement deposit received			-$9,000.00
Balance due			$4,125.00

The arithmetic:

• Sofa: $4,800 x 1.25 = $6,000.00.
• Chairs: $1,200 x 1.25 = $1,500.00 each; 2 x $1,500.00 = $3,000.00.
• Rug: $1,600 x 1.25 = $2,000.00.
• Furnishings total: $6,000 + $3,000 + $2,000 = $11,000.00.
• Subtotal: $2,000 + $375 + $11,000 + $480 = $13,855.00.
• Sales tax: $11,000 x 7% = $770.00 (freight treated as non-taxable in this example; check your state).
• Total before payments: $13,855 + $770 = $14,625.00.
• Balance due: $14,625 - $1,500 - $9,000 = $4,125.00.

This layout shows net cost and markup for each item. If your contract uses a single client price, drop the net figure from the descriptions but keep one line per item. In our online invoice generator you can add each item as a line, apply tax, and enter deposits as amount paid so the PDF shows the balance due. A refined layout such as the elegant invoice template suits client-facing design work.

What to include in an interior design invoice template

• Studio name, logo, address, email, phone and tax ID or resale permit number where required.
• Client name, billing address and project address if different.
• Unique invoice number and invoice, due and service dates.
• Project name and phase, such as "Primary suite, procurement phase".
• Design fees with their basis: flat, hourly with hours and rate, or percentage with the cost base.
• Each FF&E item on its own line: vendor or description, quantity, finish, net cost and markup if disclosed.
• Freight, receiving, storage and installation as separate lines.
• Sales tax applied only to taxable lines, with the rate shown.
• Retainers, procurement deposits and prior payments as deductions.
• Balance due, payment methods and a reference to your terms on returns and cancellations.

Sales tax on design projects

US sales tax rules for interior designers vary from state to state. In many states the resale of furniture and accessories is taxable, while some states also tax certain design services, and some treat items incorporated into real property, such as built-in cabinetry, differently from movable furniture. If you resell goods you may need a sales tax permit and can often buy for resale without paying tax upfront. Our overview of sales tax on US invoices explains the basics, but confirm the rules for your state with a tax professional. Professional bodies such as the American Society of Interior Designers also publish business resources for members.

Common mistakes on interior design invoices

• Mixing fees and goods on one line. "Living room, $14,000" makes tax calculation and client review impossible. Separate services from products.
• Undisclosed markup. If the contract does not mention markup and the client later sees a trade price, trust suffers. Disclose your approach in writing.
• Confusing markup with margin. Applying the wrong formula underprices every item. Calculate on cost if the contract says markup.
• Ordering before the deposit clears. Placing non-refundable custom orders on credit leaves you exposed if the client cancels.
• Forgetting freight and installation. These costs often arrive weeks after the item is invoiced. Track them per item and bill them before the final invoice.
• Taxing the wrong lines. Applying sales tax to the whole invoice, or to none of it, can overcharge the client or leave you owing tax.
• Not applying the retainer. If the final invoice ignores the retainer, the client will notice and question every other figure.
• Vague change requests. Billing extra hours without a dated description invites disputes. Record the request and the time spent.

Keeping procurement organized

For anything beyond a single room, keep a procurement log with one row per item: vendor, order date, PO number, net cost, markup, client price, deposit paid to the vendor, client payment received, expected delivery and status. When it is time to invoice, the log becomes the source for your line items, and it shows at a glance which items are paid, ordered or still waiting on approval. Time spent on change requests deserves the same care; our guide on billing hourly work covers time logs that hold up when a client asks.

An interior design invoice that separates fees, goods, freight, tax and payments takes a little longer to prepare, but it answers the client's questions before they are asked. That is what gets a five-figure invoice paid on time.