What is a quote?
A quote sets out what you propose to supply and what you propose to charge, before the customer decides whether to go ahead.
A quote normally covers:
- the proposed work, goods or services
- the price, or the basis on which the price is calculated
- a validity period, where relevant
- the terms or assumptions the price depends on
A quote is normally intended to be more definite than an estimate, and the customer can accept it before work begins.
What is an estimate?
An estimate is an informed approximation of what the work is likely to cost. It is useful when the scope, the time involved or the materials needed are not yet certain.
The final price may change once those details are known, so it helps to explain clearly what could move and why. Some software products and some regions use the word “estimate” where IRQDocs uses “quote”.
Quote and estimate compared
Neither document is better than the other. They answer the same customer question with a different level of certainty.
Main purpose
- Quote
- Set out a proposed price and terms
- Estimate
- Give an informed approximation
Price certainty
- Quote
- Usually more definite
- Estimate
- Usually more flexible
Use before work starts
- Quote
- Yes
- Estimate
- Yes
May include assumptions
- Quote
- Yes
- Estimate
- Yes
Final price may change
- Quote
- Only where agreed or allowed by the terms
- Estimate
- More likely if the scope changes
Can be accepted by the customer
- Quote
- Yes
- Estimate
- Yes, depending on wording and circumstances
Common IRQDocs term
- Quote
- Yes
- Estimate
- No, but it is a recognised alternative term
Is a quote legally binding?
It depends. A quote may become binding once the customer accepts it, and the wording, scope and terms all matter. Local contract law can affect the result.
An estimate can also create expectations or obligations, depending on how it is written and how it is presented to the customer. If the work or the price changes, record the change and confirm it with the customer.
General information only
This guide explains common business practice rather than the law in any particular country. Where legal certainty matters, take local professional advice.
Which term is used in different regions?
“Quote” is common in UK and Commonwealth business English. “Estimate” is especially common in US software and business usage. Both terms are widely understood internationally, and individual industries and businesses use them differently.
Choose the clearer word
Use the term your customer understands, then make the price, scope, assumptions and validity clear.
When should I use a quote?
A quote usually fits when:
- the work and the price are reasonably clear
- you can define the scope
- you can state what is included
- the price is expected to stay fixed unless changes are agreed
- the customer needs to approve the proposal before invoicing
When should I use an estimate?
An estimate usually fits when:
- the exact scope is uncertain
- materials or time may vary
- an inspection is still required
- the customer needs an approximate range before deciding
- unknown conditions may affect the final cost
What should either document include?
Whichever term you use, the document is clearer when it includes:
- your business details
- the customer details
- a document number
- the issue date
- a description of the proposed work or goods
- quantities and prices, where known
- tax, where relevant
- assumptions
- exclusions
- a validity period
- payment or acceptance terms
- notes explaining what may change
The same thinking applies to the document that follows. See invoice, quote and receipt compared and what an invoice should include. You can also start from the quote template.
Why does IRQDocs use “quote”?
IRQDocs uses “Quote” consistently as the product term, because it reads clearly for its main English-language audience. The document serves the same general pre-sale purpose that some products call an estimate.
If your price depends on assumptions or still-unknown details, you can explain that in the notes and terms of the quote. IRQDocs does not currently provide a separate Estimate document type. If a separate estimate document is essential for you, it is worth comparing other invoicing tools.
How do I create a quote in IRQDocs?
- Open the quote editor
- Add business and customer details
- Add proposed work, quantities and prices
- Add assumptions, notes or terms
- Check the live preview
- Download the PDF or sign in to save it
How do I turn a quote into an invoice?
Once the customer accepts the quote, you can carry the details into an invoice instead of typing them again. The quote must be saved to a signed-in account first, and conversion is a Pro feature.
The original quote stays as it is. IRQDocs creates a separate, editable invoice, so check the copied details, dates and totals before you send it.
See how to convert a quote into an invoice or read more about quote to invoice conversion.
Quote vs estimate at a glance
Use a quote
When the price and scope are reasonably clear.
Use an estimate
When important details remain uncertain.
Explain the detail
Set out assumptions and anything that could change.
Match your customer
Use the wording your customer understands.