Free Estimate Template

An estimate is a document that shows a client how much a job is likely to cost before the work is fully defined. It is typically used by small businesses and contractors providing services, such as repair shops, cleaning and landscaping companies, and IT firms.

An estimate template lists the scope of work, quantities, unit prices, tax, and the total estimated price, along with the assumptions the number depends on. It works only if the client can see what the price is based on. Then, even if the real job turns out different, the reason for the new price is clear, and the client knows about it before it reaches the bill.

A template for estimates may be used:

When a client asks for a price, the right document depends on how firm that price can be:

Here is how these documents work in practice:

To make the final choice, clients often compare several estimates, looking at the totals. The more detailed work estimate template you present, the easier it is for the client to understand the reasons if the price changes later.

The price in an estimate form is usually built in this order:

1. Subtotal;
2. Discount;
3. Tax;
4. Other charges;
5. Total estimated price.

It helps to show what the price is calculated on and persuades the client you haven’t just made it up.

For work done at the client’s site, the tax rate usually depends on where the work is done, not where the provider’s office is. In states that tax by destination, such as Washington, the local rate of the place where the client receives the service applies. Whether a service is taxed at all also depends on the state. If it is not taxable, the estimate should say so rather than leave the line blank.

An estimate can change, but the change should never come as a surprise. The best way for the provider to protect themselves from disputes over pricing with the client is to write a clear list of assumptions and exclusions: show what the price depends on and what it does not include.

Here’re the things that can impact the total cost:

Each assumption written down turns a later price increase into a change with a clear cause. For instance, a roofer’s estimate says, “Price assumes the roof deck is in good condition.” When the old shingles come off, two sheets of the deck are rotten. The client can see that the extra cost comes from an assumption that turned out wrong, not from a pricing mistake.

A “price valid until” date suits prices that depend on supplier costs, like lumber or copper; after that date, the provider should update the estimate.

The planned start and completion dates are a planning window, not a deadline, and work best when tied to the client’s approval date, for example, “Start within 2 weeks of approval, about 5 working days.”

Only the provider signs a completed professional estimate template, and that signature does not have legally binding power. The deal becomes valid when the provider and the client sign a service agreement or a construction contract that outlines the final scope, price, taxes, and payment terms. The same goes for deposits. An estimate can propose a payment schedule, but a deposit is requested under the agreement.

If the agreement you sign with the client has an “entire agreement” clause, it means only what is written in the agreement counts. Assumptions, exclusions, and the overrun approval rule that stay only in the estimate drop out, so they need to be repeated in the agreement.

Estimates are often rebuilt: the scope of work changes, the prices rise, the deadlines become tougher. With Loio, you do not have to create a new document from scratch every time you add a new figure. Instead, you create one document, copy it, and keep all your versions in one place: