The essentials
Everything worth knowing about an estimate.
What is an estimate?
An estimate is an approximate calculation of what a job is likely to cost. Contractors, builders, cleaners, mechanics and freelancers send estimates when the final cost depends on factors that are not fully known yet - hidden damage, the number of revision rounds, or how many hours a task actually takes.
Because it is approximate, an estimate is generally not binding the way a quote is. Still, clients rely on it to budget, so it should be as accurate and well-explained as possible. Say what assumptions you made and how changes will be handled.
Tips for writing an accurate estimate
- Separate labour and materials. Turn on Units to show hours, square feet or pieces.
- State your assumptions in the Notes section (e.g. “Assumes walls are in good condition”).
- Add a contingency line for unknowns rather than padding every price.
- Explain how overages work in Terms - e.g. “Final invoice will not exceed the estimate by more than 10% without written approval.”
- Set a validity date so material price changes don’t eat your margin.
Browse ready-made contractor, plumbing and landscaping templates for inspiration.