What is a pro forma invoice?
A pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. It notes the kind and quantity of goods, their value, and other important information such as shipping details and Incoterms. While it looks like a standard invoice, it doesn't represent a final demand for payment or carry accounting value.
It is primarily used in international trade to declare the value of goods for customs clearance before they actually cross borders. Because it provides a clear breakdown of costs, buyers also use it to open letters of credit, secure funding, or arrange advance payments.
The main difference between a pro forma and a standard invoice is commitment. A pro forma is an estimate subject to change, whereas a commercial invoice is the final bill for goods already shipped or services rendered.
How to use this pro forma invoice generator
Step 1. Enter your business and client details. Fill in the "Bill To" section with your client's billing address. If you are shipping physical goods, add the exact delivery location in the optional "Ship To" section.
Step 2. Set the terms and dates. Add an invoice number, the issue date, and a validity date to clarify how long your quote is valid. Use the "Incoterms" dropdown to specify who handles shipping, insurance, and tariffs (e.g., FOB, CIF, EXW).
Step 3. Add your line items. Describe the goods or services, quantity, and unit price. The calculator will automatically update the subtotal.
Step 4. Apply taxes and shipping. Enter any applicable tax percentage and flat shipping or freight costs. For example, if your subtotal is $5,000, adding a $250 freight cost and 0% tax makes your total $5,250.
Step 5. Download or share. Click "Download PDF" to generate a clean, watermark-free document. You can also click "Copy Link" to save your data in a URL and share the pre-filled template with your team.
If you need to generate a standard tax invoice for completed work instead, use our Invoice Generator.