A client asks "what will this cost?" and you have two very different documents you could send back. Send the wrong one and you either scare the client away with false precision — or lock yourself into a price you can't deliver on. The difference between a quotation and an estimate is small on paper and enormous in practice.
The Short Answer
| Quotation | Estimate | |
|---|---|---|
| What it is | A fixed price for defined work | An educated approximation |
| Binding? | Generally yes, once accepted | No — the final price can differ |
| Precision | Exact, itemized amounts | A range or ballpark (often ±10–20%) |
| When to send | Scope is clear and fixed | Scope is uncertain or exploratory |
| Validity | Has an expiry date ("valid 30 days") | Informal, often no expiry |
Rule of thumb: if you can list every line item with a firm number, send a quotation. If you'd be guessing at half the lines, send an estimate — and say so clearly.
What Is a Quotation?
A quotation (or "quote") is a formal offer to do specific work for a specific price. Once the client accepts it, it generally forms the commercial basis of your agreement — in many jurisdictions, an accepted quotation plus the work performed creates a binding contract. That's why serious quotations always include:
- Itemized scope — every deliverable as its own line with quantity and rate, so there's no ambiguity about what's included
- A validity date — "Valid until 8 August 2026". Material costs and your availability change; an expiry protects you
- Exclusions and assumptions — in the notes: "Price excludes content writing. Two revision rounds included; additional revisions billed at $50/hr"
- Payment terms — advance percentage, milestones, or net terms
- Quote number and date — so it can be referenced by the eventual invoice
What Is an Estimate?
An estimate is an informed approximation given before the full scope is known. A renovation contractor who hasn't opened the walls, a developer sizing up a legacy codebase, a mechanic before the diagnosis — these are estimate situations. Nothing is wrong with estimates as long as everyone knows that's what they are.
A good estimate protects both sides by stating:
- That it is an estimate, clearly labeled, not a fixed offer
- A range rather than a single number ("$3,500–4,500 depending on X")
- What would move the price up or down
- When the client will get a firm quotation (usually after an inspection, discovery phase, or detailed brief)
Which Should You Send? Quick Scenarios
- Logo design, 3 concepts, 2 revisions → Quotation. Scope is fully defined.
- "Fix whatever is making my website slow" → Estimate first, quotation after you've diagnosed it.
- Catering for 120 confirmed guests → Quotation.
- House rewiring in an old building → Estimate, then quotation after inspection.
- Monthly retainer for social media → Quotation — it's a defined recurring scope.
Protecting Yourself from Scope Creep
Most quotation disasters aren't pricing mistakes — they're scope mistakes. Three protections that cost nothing:
- Itemize aggressively. Ten specific lines beat one vague line. When the client asks for "just one more page", you can point to "Up to 5 pages" in black and white.
- State what's excluded. The notes section of your quotation is contract language: hosting, content, stock photos, revisions beyond N rounds, travel.
- Re-quote when scope changes. Don't absorb changes into a fixed price. Issue a revised quotation ("Rev 2") and get acceptance again.
From Quotation to Invoice
Once your quotation is accepted and work is delivered, the invoice should mirror the quotation line-for-line — same items, same amounts, referencing the quote number. Discrepancies between quote and invoice are the #1 trigger for payment delays. (This is exactly why ProQuote has a one-click Convert to Invoice that carries the approved items across and references the original quote number.)
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Create a Free Quotation →Key Takeaways
- A quotation is a fixed, generally binding offer; an estimate is an approximation — never blur the two.
- Send quotations when scope is defined; estimates when it isn't — then follow up with a quotation.
- Always include a validity date, itemized lines, and explicit exclusions on quotations.
- When scope changes, issue a revised quotation rather than absorbing the change.
- Invoice exactly what was quoted, referencing the quote number.