An estimate (or quote) tells a client what a job will cost before you start. A clear one wins more work and prevents arguments later, because both sides agree in writing on what is included. Here is what to put in it and how to work out the numbers.
People use the words loosely. Usually an estimate is your best guess and can change if the job turns out bigger, while a quote is a fixed price for a defined scope. Whichever you send, say which it is on the document, for example "This is an estimate; the final price may change if the scope changes" or "Fixed quote, valid for 30 days".
List each part of the work on its own line with a quantity and a unit price: hours of labour, materials, equipment hire, travel, subcontractors. Line items show the client where the money goes and make it easy to drop or add a part.
Show a subtotal, any discount, sales tax if you are required to charge it, and the total. Sales tax rules depend on what you sell and where, so check your state's rules rather than guessing.
Send the estimate as a PDF with a number (EST-0001, EST-0002…) so you can refer to it. If you haven't heard back in a few days, follow up once. When the client accepts, invoice from the same line items so the numbers match, and record which estimate became which invoice.
Not legal or tax advice. Some trades and states have specific rules for written estimates and contracts; check what applies to you.
An estimate is usually your best guess and can change if the job grows; a quote is usually a fixed price for a defined scope. Say which one it is on the document.
The scope (and what is not included), line items with quantities and unit prices, subtotal, discount, any required sales tax, total, a valid-until date, payment terms, how changes are priced, and the timeline.
30 days is common; after the valid-until date the price can change.
Skip the formatting: the free Estimate & Quote Generator makes a PDF estimate in your browser and converts it to an invoice. Nothing is uploaded.