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Estimate vs Quote: What's the Difference?

An estimate is an approximation; a quote is a firm price. What separates them, and what to do once a client accepts either one.

An estimate and a quote are both sent before the work starts, but they carry different weight. An estimate says "roughly this much, and it could move." A quote says "this exact amount, and I'll honor it." Confusing the two changes what you're actually promising the person you're doing business with.

Send an estimate when the scope isn't fully known yet — a site visit turns up an unknown, a remodel is waiting on what's behind a wall, or the price naturally depends on hours worked or materials sourced as the job goes. Say clearly that it's an estimate, and note what could change the number.

Send a quote when you can commit to a fixed price because the scope is fully defined — a known list of parts and hours, or a fixed-fee project. Once a client accepts a quote, you're expected to hold that price unless the scope changes and you document the change.

Whether an accepted quote counts as a binding contract depends on local contract law and exactly what was agreed — in most places, a quote a client accepts in writing at least functions like an offer that's been accepted, the basic shape of a deal. Treat "the client accepted my quote" as a real commitment even if you never put the word "contract" on it.

Neither document is a bill. Once the client accepts an estimate or a quote, convert it into an invoice — same parties, same line items — and add a due date and payment terms then, since that's the point where you're actually asking to be paid.

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Frequently asked questions

Can I send a client both an estimate and a quote for the same job?
Yes — a common pattern on larger jobs is a rough estimate up front so the client can decide whether to proceed, followed by a firm quote once you've assessed the site or defined the scope in detail.
Is a quote legally binding?
Whether it's enforceable as a contract depends on your jurisdiction and what was actually agreed, but a quote a client accepts in writing generally functions as a real commitment, not a suggestion — don't treat it as casually as an estimate.
What if the actual cost ends up different from my estimate?
That's expected — an estimate is an approximation, not a promise. If costs turn out meaningfully higher, tell the client before continuing rather than surprising them on the final invoice; most disputes come from a silent gap between the estimate and the bill, not from the gap itself.
Does "quotation" mean something different from "quote"?
No — same document, different word for it. "Quotation" shows up more in formal and UK business writing; "quote" is the everyday term. This site uses them interchangeably.