What is an estimate?
An estimate tells a client what a job is likely to cost before any work starts. It helps them decide whether to go ahead, compare you with other providers and plan their budget. For you, it sets expectations early and avoids awkward conversations when the invoice arrives.
A good estimate is specific about what's included, honest about what could change the price, and clear about how long the price holds.
What to include in an estimate
- Your business details and logo, so the estimate is easy to trust and to find again.
- The client and job address, plus a short description of the job.
- Itemised costs: materials, labour, equipment and any subcontracted work as separate lines.
- Tax, shown separately so the client sees the full price.
- A valid-until date: prices for materials and time don't stay fixed forever.
- Terms: what's excluded, deposit requirements and how changes to the job affect the price.
How to price a job accurately
- Visit or measure first where you can. Most estimates go wrong at this stage.
- Price materials at today's cost, including delivery and waste.
- Estimate labour in hours, then multiply by your rate, not the other way round.
- Add a contingency line for jobs with unknowns, such as old wiring or hidden damage, and explain it.
- Keep a copy. Your draft is saved in this browser, so you can reopen it and adjust it for a similar job.
Estimate vs invoice
An estimate comes before the work and says what it will probably cost. An invoice comes after and asks for payment for what was delivered. Once a client accepts your estimate, there's no need to retype anything: convert it into an invoice in the free invoice generator and adjust it for any changes to the job.
Need a firm price instead? Send a fixed-price quote. For the job itself, a work order lists the materials, labour and schedule. Before you price, check your numbers with the markup calculator and the profit margin calculator.