Estimate, quote or proposal: what's the difference?
| Document | What it promises | Use it when |
|---|---|---|
| Estimate | An approximate price that may change | The scope isn't fully known yet, e.g. a repair or a first project with a new client. |
| Quotation (quote) | A fixed price for a defined scope, valid for a set time | You know exactly what's being delivered. |
| Proposal | A quote plus the approach, timeline and terms | Larger projects where the client compares several suppliers. |
| Proforma invoice | A preview of the final invoice, often for advance payment or customs | The client needs an invoice-like document before paying a deposit. |
Change the Title field to match whichever you're sending. None of these is a demand for payment; that's what the invoice is for.
How to write an estimate that wins the job
- Break the work into lines. "Website" is hard to judge; "Design of 5 pages", "Development", "Copywriting" and "Hosting setup" are easy to approve, and easy to drop if the budget is tight.
- State what's not included. Use the Terms box for exclusions and assumptions ("two rounds of revisions included").
- Set a validity period. 30 days is common. Prices for materials and exchange rates move, and an open-ended quote can come back to bite you.
- Ask for a deposit. For new clients, 30–50% up front is normal. Mention it in the notes.
- Price it properly. If you charge by the hour, work out the rate with the freelance rate calculator before you quote.
From estimate to invoice
Your business details, logo and payment instructions are shared with the invoice generator, so once the client accepts, open it and add the same items. Many clients ask for the invoice to quote the estimate number; put it in the item description or the notes.
Frequently asked questions
Is an estimate legally binding?
Generally, an estimate is an approximation and isn't binding on price, while an accepted quotation for a defined scope can form a contract. The details depend on your country's contract law, so write clear terms and get written acceptance.
How long should a quote be valid?
Usually 14 to 30 days. Use a shorter period when your costs or exchange rates move quickly, and say so on the quote.
Can I add tax to an estimate?
Yes. Choose VAT, sales tax or GST under Items so the client sees the full price including tax. Showing tax separately avoids surprises when the invoice arrives.
Can I call it a quotation instead of an estimate?
Yes. Edit the Title field: "Quotation", "Quote", "Proposal" and "Proforma invoice" all work. The title prints at the top of the PDF.
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