Quote vs estimate: which one should you send?
A quote is a fixed price, an estimate is an approximate cost. See when to use each, what to include, and how to turn an accepted quote into an invoice.
Before a customer agrees to buy, they usually want to know the price. You can answer with a quote or with an estimate. The two look alike, but they make different promises, and choosing the wrong one can cost you money or trust.
The difference in one table
| Quote | Estimate | |
|---|---|---|
| Price | Fixed | Approximate |
| Binding | Yes, once accepted | Usually not |
| Best for | Work you can price precisely | Work with unknowns |
| Validity | Until a stated date | Often open, but should be dated |
| Next step | Sales order or invoice | Final quote or invoice |
When to send a quote
Send a quote when you know exactly what you will deliver and what it costs: a set of products, a website with a fixed number of pages, a printed batch. Once the customer accepts it, the price is agreed. If costs rise later, that is your risk, so always add a validity date.
When to send an estimate
Send an estimate when the final cost depends on things you cannot see yet: a repair before opening the machine, renovation work, a project whose scope may change. The estimate helps the customer budget. Say clearly that it is an estimate and explain what could change the final price.
What both should include
- Your details and the customer's details.
- A date and a reference number, so you can find it when they reply.
- Each item or task with quantity, unit price and total.
- Taxes, discounts and the grand total.
- Validity date for a quote, or the main assumptions for an estimate.
- How the customer accepts: a signature line or a simple "Reply to accept".
After the customer says yes
An accepted quote becomes the basis of the next document. For goods, many businesses issue a sales order to confirm the order and delivery date. For services, you can go straight to the invoice once the work is done. With our tools you do not retype anything: open the quote and choose "Convert to", then "Invoice", "Sales order" or "Proforma invoice".
Create a quote or an estimate
Give a client a fixed price for a job before they commit.
Need an approximate price instead? Use the estimate generator. Both documents can be saved on your device and converted later.