Quotes vs. Estimates: What is the Difference?

The Core Difference

In the world of business, the terms "Quote" and "Estimate" are often used interchangeably, but they carry different weights and legal implications. Using the wrong one can lead to disputes and lost revenue.

What is a Quote?

A Quote is a fixed price offer. When you give a client a quote, you are essentially saying, "I will do this specific work for exactly this amount of money."

Once a client accepts a quote, it becomes a binding contract. You generally cannot charge more than the quoted amount, even if the job takes longer than expected, unless the scope of work changes significantly. Quotes are best used for:

• Selling physical products with fixed prices.
• Standard services with well-defined scopes (e.g., "Standard Lawn Mowing").
• Packages or recurring subscriptions.

What is an Estimate?

An Estimate is an educated guess. It tells the client, "Based on what I know, I think the job will cost around this much."

Estimates are not binding fixed prices. The final invoice may vary from the estimate, usually within a reasonable margin (often 10-15%). Estimates are essential when:

• The full scope of work is unknown (e.g., opening a wall during renovations).
• Materials prices fluctuate rapidly.
• The project is time-and-materials based.

When to Use Which?

If you are confident in your costs and want to give your client certainty, use a Quote. Clients love quotes because they know exactly what they will pay.

If there are too many variables, protect yourself by using an Estimate. Be sure to communicate that the final price may change.

Managing Quotes and Estimates in SimplyQuote

SimplyQuote makes it incredibly easy to switch between these two document types without starting over.

Toggle Document Type

At the top of the "Create" page, you will see a dropdown or toggle to select "Quote" or "Estimate". Changing this instantly updates the language on the document. If you select "Estimate", the document will include standard disclaimers that the price is an approximation.

Converting to Invoice

Whether you send a Quote or an Estimate, once the job is done, you can convert it to an invoice with one click. If it was an Estimate, this is your chance to adjust the final line items to reflect the actual work done before sending the bill.