Business documents

Invoice vs Estimate

An estimate proposes expected costs before work. An invoice requests payment after work or a milestone.

1 min read 3 sections Updated 2026-05-21
Quick answer

An estimate proposes expected costs before work. An invoice requests payment after work or a milestone.

What an estimate does

An estimate helps a client approve expected scope, labor, materials, and price before work starts.

What an invoice does

An invoice requests payment for completed work, delivered goods, a milestone, or an agreed deposit.

How they work together

Many service businesses send an estimate first, get approval, complete the work, then send an invoice for the final amount.

What an estimate does

An estimate helps a client approve expected scope, labor, materials, and price before work starts.

What an invoice does

An invoice requests payment for completed work, delivered goods, a milestone, or an agreed deposit.

How they work together

Many service businesses send an estimate first, get approval, complete the work, then send an invoice for the final amount.

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