Estimate vs invoice: what is the difference?

An estimate is a price you give before the work, so your client can say yes or no. An invoice is a request for payment, sent after the work or at an agreed stage. They look alike, and many jobs use both: the estimate first, the invoice later.

1The difference, side by side

	Estimate	Invoice
When you send it	Before the work	After the work, or at an agreed stage
What it does	Says what you will do and what it will cost	Asks to be paid for work done
What your client does	Says yes or no	Pays
Number	EST-0001, EST-0002	INV-0001, INV-0002
Date that matters	Valid until, how long the price holds	Due date
Deposit	You may ask for one to begin	Subtract any deposit already paid
If the job changes	Send a change order	The total should match what was agreed and done

2When to send an estimate

Send an estimate when the client needs a price before they decide, when the job is larger than a quick fix, or when you want the scope in writing before you start. It protects both sides: the client knows the cost, and you have a record of what you agreed to do. You can make one with the estimate generator.

3When to send an invoice

Send an invoice when the work is done, or when a stage you agreed on is finished. For a small job, an invoice alone is often enough. Use the same lines and prices as the estimate, add any changes that were approved, and subtract any deposit. You can make one with the invoice generator.

4From estimate to final payment

On a bigger job the estimate is the start of a chain. The approved estimate sets the price. A deposit invoice can ask for part of it up front. Change orders record every change. Progress invoices bill the stages, and the final invoice clears what is left.

For example, a $4,000.00 estimate plus an approved $600.00 change, minus $2,500.00 already paid, leaves $2,100.00 owed. Keep those four numbers together and the balance is never a guess.

5How to write an estimate for a job

Say what the job is and where it is. List what is included, one line per item, with the quantity and the price. Say what is not included, so there are no surprises. Add the date the price is valid until, because materials and time cost more later. Say whether you want a deposit and how much. Leave a line for your client to approve it. Keep a copy.

6What if the job changes?

Do not just add the extra to the final invoice. Write a short change order that says what was added or removed and the new price, and get your client to approve it before you do the work. The change order generator makes one in a few minutes.

7Is an estimate binding?

It depends on what you wrote and the rules where you work. Some places treat a written estimate like a fixed price, and some do not. State clearly whether the number is a fixed price or a best guess, and ask an adviser where you work if you are not sure. This is not legal advice.

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Questions people ask

Is an estimate the same as a quote?

People use the words loosely. Some trades use estimate for a best guess and quote for a fixed price. Whichever word you use, say on the document whether the price is fixed.

Can I turn an estimate into an invoice?

Yes. Copy the approved lines onto an invoice, add any approved changes, and subtract any deposit that was paid. Keep the estimate number on the invoice so both can be found together.

Do I have to ask for a deposit?

No. A deposit is optional. Many people ask for one on larger jobs, so they can buy materials and the client has a stake in going ahead.

Does an estimate need a number and a date?

Yes. A number and a date make it easy to find later and show how long the price holds.