Billing models

Time and Materials Invoice Template

Charge for labour hours and the materials or parts used, itemised on separate lines that total together.

How do I make a time and materials invoice?: In Receipt Caker, add labour lines with hours and rate, then add material lines with quantity and price. The generator totals everything, applies any tax and shows the combined amount due.
What does time and materials mean?: Time and materials billing charges for the actual labour hours worked plus the cost of parts and materials used. Rather than one fixed price, the client pays for the real effort and the real supplies the job required.

What to include on a time & materials invoice

Your name or business and contact details

Client name and billing address

Invoice number and issue date

Labour lines with hours worked and hourly rate

Material lines with quantity, item and unit price

A subtotal for labour and one for materials

Tax if it applies, plus the combined total

What you can do

Add labour lines using hours and rate
Add material lines using quantity and unit price
Automatic totalling across labour and materials
Optional tax percentage applied to the combined subtotal
Free watermarked PNG export with no signup
Pro removes the watermark, adds PDF export and logo upload

What a time and materials invoice is

A time and materials invoice charges for two things: the labour hours you worked and the parts or supplies the job consumed. Both appear as itemised lines, so the client sees effort and materials separately.

It is common in trades, repair, maintenance and build work, where neither the hours nor the supplies can be pinned down precisely before the job begins.

When to bill time and materials

Use this model when the scope is uncertain and both labour and materials vary with the job. It keeps billing fair: the client pays for what the work actually took, with nothing padded into a guessed fixed price.

It suits situations where you cannot know in advance how many hours or how much material a job needs, such as diagnosing a fault or renovating something with hidden surprises.

What to include on the invoice

Separate labour from materials. Put each block of work on a labour line with hours and rate, and each supply on a material line with quantity and unit price. This clarity helps the client check the invoice.

Consider grouping the two so a labour subtotal and a materials subtotal are visible, then let the grand total combine them. Add your invoice number, date, terms and any tax.

Building it in Receipt Caker

Add labour lines by entering hours and rate, which the generator multiplies. Then add material lines with quantity and unit price for parts. Everything totals into one combined figure.

Set a tax percentage if it applies to the whole subtotal, preview the layout, and export a free watermarked PNG or a clean Pro PDF with your logo. Receipt Caker builds the document; it does not track stock, source parts or collect payment.

Frequently asked questions

How do I separate labour and materials clearly?

Give each its own lines and, ideally, a visible subtotal. Put labour lines together with hours and rate, then group material lines with quantity and unit price. A short heading or note before each group helps the client scan the invoice. The generator totals all lines regardless, but grouping makes the breakdown far easier to read.

Should I add a markup on materials?

Many trades add a markup to cover sourcing and handling; whether you do is up to you and your agreement. If you mark up, enter the marked-up unit price on each material line, or add a separate handling line. Be consistent and, where relevant, tell the client your approach so the figures are not a surprise.

How is time and materials different from a fixed fee?

A fixed fee is one agreed price regardless of actual effort, while time and materials bills the real hours and real supplies used. Fixed fees favour predictable, well-scoped jobs; time and materials favour uncertain ones. With time and materials the final total depends on how the work unfolds, which is why itemised lines matter so much.

Can I cap a time and materials invoice?

You can agree a not-to-exceed cap with the client, though that is part of your agreement rather than a feature of the invoice. If you cap the total, bill the actual lines as normal up to the agreed ceiling and note the cap where helpful. Receipt Caker totals the lines you enter; it does not enforce a limit for you.

Do I need receipts for the materials I bill?

For your own records and for client trust, keeping proof of material costs is sensible, especially if you bill at cost. The invoice itself lists the materials and prices; your supporting receipts sit behind it in your records. Good record-keeping makes it easy to justify each material line if a client ever queries it.

How does tax apply across labour and materials?

Set a single tax percentage in the generator and it applies to the combined subtotal of labour and materials, showing the tax and grand total at the foot. If labour and materials are taxed differently in your situation, you may need to split them or check the guidance that applies to you before issuing the invoice.

Related invoice templates

Hourly Invoice Contractor Invoice Itemized Invoice Fixed-Fee Invoice Service Invoice