Back to Glossary
Invoice Types
Estimate
Definition
An approximate calculation of the cost for products or services.
Overview
Estimates provide clients with a rough idea of costs. Unlike quotes, estimates are not fixed and final costs may vary based on actual work performed.
Example
A contractor provides a $10,000-$12,000 estimate for bathroom remodeling.
Best Practices
Clearly state that it's an estimate and final costs may vary. Provide ranges when appropriate.
Common Mistakes to Avoid
Client confusing estimate with fixed price
Not updating when scope changes
Too vague
Frequently Asked Questions
Can I charge more than the estimate?
Yes, but communicate changes before they occur. Some contracts require approval for overages.