Estimate

What is an estimate?

An estimate is a preliminary calculation of what a job or project will likely cost. It gives potential customers an idea of pricing before they commit, but it's not a fixed or guaranteed price. The final amount may change based on actual materials used, time spent, or unexpected issues that arise during the work.

Estimates are common in trades like plumbing, electrical work, landscaping, and home renovation where the full scope of work isn't always clear until the job is underway.

What should an estimate include?

A clear estimate typically includes:

• Your business details — Name, contact information, and license number if applicable
• Client details — Name and project address
• Scope of work — Description of what's included (and what's not)
• Cost breakdown — Labor, materials, and any other charges
• Estimated total — Clearly marked as approximate
• Validity period — How long the estimate is good for
• Assumptions — Conditions that could change the final price

Estimate vs. quote

The key difference is commitment. An estimate is a ballpark figure that can change—it's your best guess based on available information. A quote is a fixed price you're agreeing to honor for a specific period. If you're confident in the scope, provide a quote. If there are unknowns, an estimate protects you from undercharging.

When to use an estimate

Send an estimate when you can't fully assess the job upfront, when the project has variables that could affect cost, or when the client is still in the early stages of decision-making. Once the scope is clear and you've agreed on terms, you can convert the estimate into a formal quote or invoice.