{"id":17073,"date":"2023-01-13T10:55:07","date_gmt":"2023-01-13T10:55:07","guid":{"rendered":"https:\/\/www.mooninvoice.com\/blog\/?p=17073"},"modified":"2026-10-19T10:55:00","modified_gmt":"2026-10-19T10:55:00","slug":"partial-payment","status":"publish","type":"post","link":"https:\/\/www.mooninvoice.com\/blog\/partial-payment\/","title":{"rendered":"Partial payments: meaning, example, and how they work"},"content":{"rendered":"

What is a partial payment?<\/h2>\n

A partial payment is when a customer pays only a portion of the total amount due on an invoice, with the remaining balance paid later. In simple terms, it can be described as smaller down payments on a large invoice. When all the partial payments are totaled, they equal the total amount specified on the invoice.<\/p>\n

Businesses allow partial payments to receive money upfront without requiring the customer to settle the entire invoice at once.<\/p>\n

The below is a standard formula to calculate partial payments:<\/p>\n

Partial payment = Invoice total x Payment percentage<\/strong><\/div>\n
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Managing partial payments eating up valuable hours?<\/strong><\/p>\n

Consider your worries are over. Switch to Moon Invoice today and keep a record of every partial payment made right under your nose.<\/p>\n

Manage Payments Smartly<\/a><\/p>\n<\/div>\n

Examples of partial payments<\/h2>\n

Partial payments can look different depending on the type of business and the reason for collecting payment<\/a> in stages. Here are two practical examples to understand how they work.<\/p>\n

Example 1: Construction project<\/h3>\n

Let’s assume a contractor takes up a commercial building renovation project worth $60,000. To accomplish the project will require costs for materials and labor, and months of work. Considering this, both the contractor and the client agree to split the payment into stages.<\/p>\n

The payment schedule could look like this:<\/strong><\/p>\n