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> Fetch the complete documentation index at: https://help.hoopai.com/llms.txt
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# Payment plans — installments and deposits on invoices
> Break invoice payments into scheduled installments or require a deposit upfront — with optional auto-payment for each installment.
Payment plans let you split a single invoice into multiple installments paid on different dates. Instead of requiring full payment upfront, you can give customers a structured schedule — for example, a 30% deposit now and 70% balance in 30 days — while still issuing one consolidated invoice document.
Payment plans are configured on individual invoices. They are not available on estimates or recurring invoice templates. To accept auto-payments on installments, Stripe must be connected in **Payments → Payment Integrations**.
***
## When to use payment plans
Payment plans are ideal for:
* **High-value services** where customers need billing flexibility (coaching packages, consulting projects, event production)
* **Deposit arrangements** where you want a percentage paid upfront before work begins and the remainder on completion
* **Project-based billing** with milestone payments tied to specific dates
* **Multi-session programs** billed across a defined time period
If you need recurring billing that continues indefinitely or until a subscription is cancelled, use a recurring invoice or Stripe subscription instead. Payment plans are best for a defined number of payments with specific dates.
***
## Creating a payment schedule on an invoice
Go to **Payments → Invoices & Estimates**, click **+ New → New Invoice**, and fill in the customer, line items, discounts, and tax as you normally would.
Set the invoice's overall **due date** to the date of the final installment. The system will not allow individual installment dates to fall after the invoice due date.
Scroll down in the invoice editor to the **Payment Schedule** section and click **Add payment schedule**.
A dialog opens where you configure the installment breakdown.
Select the method for dividing the invoice:
* **Percentage** — define each installment as a percentage of the invoice total (e.g., 30% + 70%)
* **Fixed amount** — specify a specific dollar amount for each installment
You must choose one method for the entire schedule. You cannot mix percentage-based and fixed-amount installments on the same invoice.
For each installment, configure:
* **Amount** — the percentage or fixed dollar amount for this installment
* **Due date** — the date this installment is due
Click **Add payment** to add another installment step. You can add as many installments as you need.
For a percentage-based schedule, ensure all installments sum to exactly 100%. For a fixed-amount schedule, ensure all installments sum to the invoice total. The editor will alert you if the totals do not match.
The editor shows a summary of all installments with their amounts and due dates. Verify the schedule is correct before proceeding.
**Example deposit + balance structure:**
| Installment | Type | Amount | Due date |
| ----------- | ---- | ---------- | -------------------------- |
| Deposit | 30% | \$750.00 | Invoice date (today) |
| Balance | 70% | \$1,750.00 | 30 days before project end |
Toggle **Enable auto-payment** to charge each installment automatically on its due date. The system will use the payment method saved to the contact.
If you enable auto-payment, select the card to charge:
* **Customer card** — the card used on a previous invoice
* **Saved card** — any card stored on the contact's profile
* **New card** — enter details for a new card
Auto-payment on installments requires the customer to have a saved payment method. If no card is on file, auto-payment cannot be enabled. The customer must pay the first installment manually and save their card before subsequent installments can be auto-charged.
Click **Send**, choose email or SMS delivery, and confirm. The customer will see the full invoice with the installment schedule clearly displayed, including each amount and due date.
***
## How the customer pays installments
When a customer receives an invoice with a payment plan, they see each installment listed with its due date and amount. The payment experience works as follows:
* The customer can pay the **current installment** immediately using the Pay Now button
* Future installments show their due dates but are not yet payable until their date arrives (unless the customer chooses to pay early)
* A customer can pay the **full remaining balance** at any time — the Pay Full Balance option is always available on the invoice
* If auto-payment is enabled, each installment is charged automatically on its due date without the customer needing to take any action
***
## Invoice status with payment plans
An invoice with a payment plan can show the following statuses:
| Status | Meaning |
| ------------------ | ------------------------------------------------ |
| **Due** | Invoice sent; no installments paid yet |
| **Partially paid** | One or more installments paid, but not all |
| **Paid** | All installments have been paid in full |
| **Overdue** | One or more installments are past their due date |
The dashboard invoice totals (Due, Received, Overdue) are calculated based on the installments that are currently outstanding, not the full invoice amount.
***
## Late fees on installments
If you have configured late fees on the invoice, they apply to each **individual installment independently** after the configured grace period.
For example, if you have a 7-day grace period with a \$25 flat late fee:
* Installment 1 due January 1: late fee applies January 8 if unpaid
* Installment 2 due February 1: late fee applies February 8 independently, regardless of installment 1 status
Late fees on payment plans accumulate per installment. A customer who pays all installments late will accrue a late fee for each unpaid installment that exceeds the grace period.
***
## Payment reminders and installments
If invoice reminders are configured (globally or on the individual invoice), they apply to each installment's due date separately. The customer will receive reminder messages for each upcoming and overdue installment, just as they would for a single-payment invoice.
This ensures no installment payment goes unnoticed — the reminder sequence resets for each installment based on its individual due date.
***
## Editing a payment schedule after sending
You can edit the payment schedule on an invoice that has already been sent, **as long as no installments have been paid yet**.
Once any installment has been paid, the paid installment is locked and cannot be changed. Unpaid future installments can still be adjusted.
To edit:
1. Open the sent invoice
2. Click into the Payment Schedule section
3. Modify the unpaid installments as needed
4. Save the invoice — the customer's payment link will reflect the updated schedule
***
## Changing the schedule if a customer wants to pay early
If a customer wants to pay off the remaining balance before all installment dates arrive:
1. They can click **Pay Full Balance** on the invoice at any time to clear all remaining installments
2. Alternatively, you can edit the remaining installment dates to an earlier date, or consolidate them into a single payment
No action is required on your end if the customer simply pays the full balance — the invoice will automatically update to Paid status.
***
## Common payment plan examples
### Photography or creative services deposit
A photographer charging \$3,000 for an event package:
| Installment | Percentage | Amount | Due |
| --------------- | ---------- | ---------- | --------------------------- |
| Booking deposit | 33% | \$1,000.00 | Upon booking (invoice date) |
| Second payment | 33% | \$1,000.00 | 30 days before the event |
| Final balance | 34% | \$1,020.00 | Day of event |
### Coaching program — 4 payments
A coaching program priced at \$4,800 split across 4 months:
| Installment | Fixed amount | Due |
| ----------- | ------------ | ------------- |
| Payment 1 | \$1,200.00 | Month 1 start |
| Payment 2 | \$1,200.00 | Month 2 start |
| Payment 3 | \$1,200.00 | Month 3 start |
| Payment 4 | \$1,200.00 | Month 4 start |
### Website project — milestone billing
A web development project billed at three milestones:
| Installment | Percentage | Amount | Due |
| --------------- | ---------- | ---------- | -------------------- |
| Project kickoff | 50% | \$2,500.00 | Project start |
| Design approval | 25% | \$1,250.00 | Design sign-off date |
| Final delivery | 25% | \$1,250.00 | Launch date |
***
## Payment plan vs recurring invoice — choosing the right approach
Both payment plans and recurring invoices break billing into multiple payments, but they serve very different purposes:
| Scenario | Use payment plan | Use recurring invoice |
| ------------------------------------ | ---------------- | --------------------- |
| Fixed total, split into installments | Yes | No |
| Ongoing service with no defined end | No | Yes |
| Deposit + balance on a project | Yes | No |
| Monthly retainer, indefinite | No | Yes |
| Coaching program with 4 payments | Yes | No |
| Subscription-style billing | No | Yes |
| Specific milestone dates | Yes | No |
The key distinction: **payment plans are for a single invoice with a known total**, split across known dates. **Recurring invoices are for generating a new invoice document each cycle**, with no predetermined end to the total amount billed.
***
## Recording a manual payment on a specific installment
If a customer pays an installment by cash, check, or bank transfer outside of the platform's online payment flow, you can record that payment manually so the invoice status stays accurate.
Go to **Payments → Invoices & Estimates** and open the invoice with the payment plan.
In the payment schedule section of the invoice, locate the installment that was paid and click **Record payment** next to it.
Select the offline payment method (Cash, Check, or Other), enter the amount received, and add any internal notes (e.g., check number or transfer reference).
Click **Save**. The installment moves to Paid status. If all installments are now paid, the invoice updates to fully Paid.
***
## Sending a payment plan confirmation to the customer
When you send an invoice with a payment plan, the customer's invoice email includes the full installment schedule so they know exactly what to expect. The payment link they receive shows:
* Each installment with its amount and due date
* Which installments have been paid and which are upcoming
* A clear Pay Now button for the current installment
* A Pay Full Balance option to clear all remaining payments at once
Consider adding a note to the invoice's Notes field that summarises the payment arrangement — for example, "This invoice is split into three milestone payments as agreed in your proposal. Payment 1 is due upon receipt." This sets clear expectations and reduces customer support questions.
***
## Frequently asked questions
Yes. You can add as many installment steps as your project or arrangement requires. Click Add payment in the payment schedule dialog for each additional installment. There is no enforced maximum number of installments.
The customer can click Pay Full Balance on the invoice at any time to pay all remaining installments in one payment. The invoice will immediately update to Paid status. If auto-payment was configured for future installments, those scheduled charges are cancelled automatically.
No. Payment plans apply to invoices only. They are designed for a defined schedule with a fixed number of payments and a fixed total amount. Subscriptions use a separate recurring billing mechanism and do not support installment schedules.
If the card charge for an installment fails, the installment moves to Unpaid status. Both you and the customer are notified by email. You can retry the charge manually from the invoice, or ask the customer to update their payment method and pay the installment directly through the invoice link.
No. You must choose one method — either percentage or fixed amount — for the entire payment schedule. All installments on a single invoice must use the same method. If you need a mixed approach, consider creating the schedule as fixed amounts that correspond to the percentages you have in mind.
Yes. If invoice reminders are configured, they apply to each unpaid installment based on its individual due date. The customer will receive before-due, on-due-date, and overdue reminders for each installment independently, just as they would for a standard single-payment invoice.
No. Payment plans can only be added to invoices that are in an unpaid state (Draft, Sent, or Due). Once an invoice is fully paid, its payment history is locked and a payment schedule cannot be added retroactively.
Yes, as long as no installments have been paid yet. Open the invoice editor, go to the Payment Schedule section, and remove the schedule. The invoice will revert to a standard full-payment invoice.
The invoice's overall due date must be set to the date of the last installment or later. Individual installment dates cannot fall after the invoice due date. Set the invoice due date first before configuring the installment schedule.
***
## Flexible payment plans for invoices
Beyond simple equal installments, payment plans support flexible structures:
* **Unequal amounts** — set different dollar amounts for each installment (e.g., a larger deposit followed by smaller monthly payments)
* **Variable intervals** — space installments at different intervals (e.g., first payment today, second in 14 days, third in 60 days)
* **Milestone-based** — tie installment dates to project milestones rather than fixed calendar intervals
* **Front-loaded** — collect a larger percentage upfront (50/25/25) to reduce risk on high-value projects
To create a flexible plan, use the **Fixed amount** installment type and set custom amounts and dates for each payment step independently.
***
## Setup fees on recurring invoices
Add a one-time setup fee to a recurring invoice so the first payment includes an additional charge that does not repeat:
Go to **Payments > Invoices** and create a new recurring invoice with your standard recurring line items (e.g., "\$199/month retainer").
Add a separate line item for the setup fee (e.g., "One-Time Setup Fee — \$500"). Mark this line item to appear **only on the first invoice** by setting its recurrence to **Once**.
Set the recurring schedule (monthly, quarterly, etc.) for the standard line items. The setup fee line item will only appear on the first invoice generated.
When the first invoice is sent, it includes both the recurring amount and the setup fee. All subsequent invoices include only the recurring line items.
Clearly label setup fees on the invoice so the customer understands this is a one-time charge. Adding a note like "This setup fee applies to the first invoice only — subsequent invoices will be \$199/month" prevents confusion and support requests.