Finance & Contracts

Estimate vs Quote

An estimate is an informed guess; a quote is a binding offer at a fixed price.

In contractor practice, "estimate" and "quote" are often used interchangeably, but legally they're different. An estimate is a non-binding approximation, subject to change when actual scope is determined. A quote is a binding offer to complete defined work at a stated price; if the customer accepts, a contract is formed. Use "estimate" for ballpark; "quote" when you're ready to commit. Software workflows typically standardize on "quote."