Invoice guide
Quote vs estimate vs proposal: what's the difference?
An estimate is your best guess at the price and can change. A quote is a fixed price for a defined job, usually valid for a set time. A proposal is a quote with the reasoning around it: the scope, deliverables, timeline, options, payment schedule and terms, ending in a signature. Use an estimate early, a quote for simple work, and a proposal when the job is bigger or the client is comparing you with others.
Side by side
| Estimate | Quote | Proposal | |
|---|---|---|---|
| Price | Approximate, may change | Fixed for the defined job | Fixed, with optional extras |
| Detail | A few lines | Scope and fee | Scope, deliverables, timeline, payments, terms |
| Signed? | No | Sometimes | Yes: it's the agreement |
| Best for | Early conversations | Small, clear jobs | Bigger work, competitive pitches |
| Becomes | A quote | An invoice | A schedule of invoices |
Which one to send
- An estimate when the client asks "roughly how much?" and you don't know enough yet. Say clearly that it's an estimate.
- A quote when the job is small and both sides already agree what it is: a fee, a deposit and a few terms.
- A proposal when the job runs over weeks, has stages, or the client is choosing between suppliers. The extra detail is what wins it.
From yes to invoice
In Invoice, a quote's agreed fee or deposit becomes a draft invoice in one tap. A signed proposal goes further: each payment in its schedule becomes its own draft invoice, due on its milestone's date, so nothing is retyped and nothing is forgotten.
Questions
Is a quote legally binding?
Often, once the client accepts it, because it's a fixed price for a defined job. An estimate usually isn't. The exact rules depend on the wording and where you work.
Can an estimate change?
Yes, that's the point of an estimate: it's your best guess. Tell the client as soon as you know the price will be different.
Is a proposal the same as a quote?
A proposal includes a quote, the price, but adds the scope, deliverables, timeline, payment schedule and terms, and it ends in a signature.
When should I send a proposal instead of a quote?
When the work runs over several stages, costs more, or the client is comparing you with other suppliers.