Line Item

What is a line item?

A line item is a single row on an invoice, estimate, or quote that describes one specific charge. Each line item typically includes a description of what's being billed, the quantity, the unit price, and the total for that item. Multiple line items add up to create your invoice subtotal.

Clear line items help clients understand exactly what they're paying for.

Line item components

A typical line item includes:

• Description — What the charge is for
• Quantity — How many units (hours, items, square feet, etc.)
• Unit price — Cost per unit
• Amount — Quantity multiplied by unit price

Example: Electrical labor | 4 hours | $85/hr | $340

Writing effective line items

Good line item descriptions are specific enough that clients understand the charge but concise enough to scan quickly. Instead of just Labor, write Electrical panel installation labor. Instead of Materials, write 200A electrical panel with breakers.

Line items for different business types

How you structure line items depends on your business:

• Hourly services — Line items for hours worked, possibly broken down by task
• Fixed-price projects — Line items for project phases or deliverables
• Materials + labor — Separate line items for parts/materials and labor
• Retail/products — Line items for each product sold