Core concepts
Invoice vs. quote
A quote is an estimate of cost given to a customer before work begins, while an invoice is a request for payment issued once the work is agreed or completed.
The core difference
A quote (or quotation) comes first. It tells a potential customer what a job will cost so they can decide whether to go ahead. It’s not a demand for payment and the customer owes nothing by receiving one.
An invoice comes later. Once the work is agreed or delivered, the invoice requests payment for it and is recorded as a sale. A quote sells the work; an invoice collects for it.
When each is used
Send a quote during the sales stage, when a customer is comparing options or needs a price to approve a budget. Quotes often include an expiry date and the assumptions behind the price.
Send an invoice after the customer accepts and the work is scheduled or finished. Many tools let you convert an accepted quote straight into an invoice, reusing the same line items.
Example: A landscaper quotes $2,000 for a patio. The client approves, the work is done, and the landscaper converts the quote into a $2,000 invoice requesting payment.
FAQs
Frequently asked questions
Is a quote legally binding?
A quote is generally an offer at a stated price rather than a demand for payment. Once the customer accepts it and work proceeds, it can form the basis of a binding agreement, but the quote itself doesn’t request payment.
Can a quote become an invoice?
Yes. Once a quote is accepted and the work is agreed or done, you convert it into an invoice — usually reusing the same line items — to request payment.
Related terms
Proforma invoice
A proforma invoice is a preliminary, good-faith estimate of costs a seller sends before goods or services are delivered, so the buyer can review and commit before a final invoice is issued.
Invoice
An invoice is a document a seller sends to a buyer that itemizes goods or services provided and requests payment by a stated due date.
Payment terms
Payment terms are the conditions on an invoice that state when payment is due and how it should be made — for example "Net 30" or "Due on receipt."
Put it into practice
WaffleInvoice lets you create branded invoices, set payment terms, collect payments online, and automate reminders — free for unlimited invoices.
Send quotes and invoices free Browse the glossaryNo credit card required.