“Estimate”, “quote” and “proposal” are often used as if they mean the same thing. They don’t — and the word you choose sets your client’s expectations about whether the price can change. Here’s the practical difference.
Estimate
An estimate is your best guess at the cost before the work is fully defined. It’s a ballpark figure that can reasonably move as the scope becomes clearer. Use an estimate when a client asks “roughly how much?” and you can’t yet commit to an exact price. Always say clearly that it’s an estimate and note what could change it.
Quote (quotation)
A quote is a fixed price, valid for a stated period, that the client can accept. Once accepted, you’re generally expected to honour it — so quote only when the scope is clear. A good quote includes an itemised breakdown, the total, a “valid until” date and any terms (deposit, exclusions). In the UK this is often called a “quotation”; in Australia and North America, a “quote”.
Proposal
A proposal goes further than price. It explains your understanding of the problem, your approach, timeline, deliverables and why you’re the right choice — with pricing usually near the end. Proposals suit larger or competitive jobs where you’re selling the approach, not just the number.
Which should you send?
- Client just wants a ballpark → estimate.
- Scope is clear and you can commit to a price → quote.
- Bigger job, you need to sell your approach → proposal (often with a quote inside).
Whatever you call it, be explicit about what’s included, what isn’t, and how long the price holds. That one habit prevents most pricing disputes.
From quote to invoice in one click
When a client accepts, you shouldn’t have to retype everything. Build your estimate or quote with our free estimate & quote generator — it adds a valid-until date and an acceptance line, and you can convert it straight into an invoice once the job is approved, keeping the same details with a new number.