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Your Company Name
123 Business Street
City, State 10001
Country
hello@yourcompany.com
+1 555 000 0000
QUOTE / ESTIMATE
INV-2025-001
Bill To
Client Name
456 Client Avenue
City, State 20002
client@example.com
Issue Date
Due Date
Description
Qty
Unit Price
Total
Subtotal$0.00
Discount$0.00
Tax (10%)$0.00
Shipping$0.00
TOTAL DUE$0.00
Payment Details:
Bank: Your Bank Name
Account: 1234567890
Payment due within 30 days. Thank you for your business!
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What Is a Quote or Estimate?
A quote (also called an estimate, proposal, or tender) is a document you send to a potential client before any work begins. It outlines what you propose to do and at what price. Unlike an invoice, a quote does not create a payment obligation - it is an offer that the client can accept, negotiate, or decline.
The key distinction between a quote and an estimate is certainty: a quote is a fixed price offer (the final cost should match the quote if the scope does not change), while an estimate is an approximation - the final invoice may be higher or lower. Always make clear to the client which one you are sending, as mixing them up is a common source of billing disputes.
Key Fields for Quotes and Estimates
Clear description of the proposed work
Fixed price or estimated price range per item or service
Quote validity period - e.g. "This quote is valid for 30 days"
Terms and conditions - what is and is not included in the price
Deposit or payment terms - what you require before starting
Expiry date - so both parties know when the price is no longer valid
Frequently Asked Questions
What is the difference between a quote and an invoice?
A quote is sent before work begins and is a price proposal - it does not demand payment. An invoice is sent after work is completed and is a legal demand for payment. You send a quote first; if the client accepts it, you do the work, then send an invoice.
Is a quote legally binding?
A quote becomes binding when both parties formally accept it - typically when the client signs it or confirms acceptance in writing. Until then, either party can withdraw or negotiate. Always get written acceptance before starting work on any significant project.
Can I convert a quote to an invoice?
Yes - simply take the line items from your accepted quote and transfer them to the relevant invoice template. If the actual costs changed from the quoted amount, discuss it with the client before issuing the invoice.
How long should a quote be valid for?
Most businesses use 30-day validity, but you can choose any period. Include the validity date clearly so the client knows they need to respond before prices may change. For materials-intensive industries where costs fluctuate, a shorter validity period of 7 to 14 days is often sensible.