Estimate: definition, example, and why it matters

An estimate gives the customer an expected price range based on scope, materials, and labor. It is not a legal commitment to a final price — that's a quote. Many trades convert approved estimates directly into invoices once the job is complete.

• Short definition. A non-binding written quote of the cost of a job, sent before work begins.
• Category. Estimate is a invoicing term used by service businesses when billing customers.
• How Glo Invoice handles it. Glo Invoice builds estimate into the invoice itself, so you don't track it on paper or in a spreadsheet.

Frequently asked questions

What does estimate mean?

An estimate gives the customer an expected price range based on scope, materials, and labor. It is not a legal commitment to a final price — that's a quote. Many trades convert approved estimates directly into invoices once the job is complete.

Related terms

• Quote — A fixed-price offer to perform a job that, once accepted, is binding.
• Invoice — A document a business sends a customer requesting payment for goods or services.
• Scope of work — The written description of exactly what work is included in a job.
• Deposit — An upfront payment that reserves the job or covers materials.