What an estimate is for
An estimate is your price for a job before you start it: what the client gets, what it costs and what happens next. Later, it's the record of what you both agreed to.
Most estimates that cause trouble aren't wrong on price. They're vague. "Repipe, $2,400" leaves the client to fill in the blanks, and they'll fill them in their own favor.
An example of a written estimate
Here's the estimate from our plumbing estimate template: a Columbus, Ohio plumber quoting a homeowner to replace old galvanized supply pipe.
| Line | Qty | Price | Amount |
|---|---|---|---|
| Remove and replace 40 ft galvanized supply line with PEX | 1 | $1,650 | $1,650 |
| Two new 1/2" quarter-turn shutoff valves | 2 | $38 | $76 |
| Open and patch drywall access (2 openings) | 2 | $145 | $290 |
| Pressure test and leak check | 1 | $95 | $95 |
| City plumbing permit and inspection | 1 | $120 | $120 |
| Subtotal | $2,231 | ||
| Sales tax 7.5% | $167.33 | ||
| Total | $2,398.33 |
Under the lines it says: not included are painting of patched drywall, fixture replacement and work behind tile. Price valid 30 days. 30% deposit ($719.50) to schedule, balance on completion.
One page, nothing clever, nothing missing. The tax rate belongs to this example, so use your own.
What should be included in an estimate
- Your business details. Name, phone, email, and your license number if your trade has one.
- The client and the job address. A landlord rarely lives at the rental you're quoting.
- An estimate number and date. You'll need both when the client calls back about "that quote."
- The scope, one line per piece of work.
- Quantities and unit prices. "2 x $145" lets the client check your math and see where the money goes.
- Subtotal, tax and total. Tax rules vary by place, so check with your tax office before you set the rate.
- Exclusions. What the price does not cover.
- How long the price is valid.
- The deposit and when the balance is due.
- A place for the client to sign.
Write the scope in the client's words
Your client didn't ask for PEX. They asked for the rusty water to stop. Use trade terms where they change the price, but make sure each line also says what changes in their home. "Remove and replace 40 ft galvanized supply line with PEX" works because it names what comes out, what goes in and how much of it.
A quick test: read each line out loud at the kitchen table. If the client asks "what does that mean?", rewrite it.
Exclusions, validity and deposit
Exclusions. Every job has an edge where your work stops. A repipe opens walls, so the client will wonder who paints them. Answer that before they ask. List only what a fair-minded client might assume is included.
Validity. Material prices move and your calendar fills up. "Price valid 30 days" means you aren't held to a number from last season. Whether an estimate is binding, and for how long, depends on where you work, so check your state or provincial rules.
Deposit. A deposit turns a yes into a booked date. In the example, 30% of $2,398.33 is $719.50, due to schedule the work. Some places limit deposits on home improvement jobs, so check your local rules before you pick a percentage.
How do I calculate an estimate?
The method is the same in every trade:
- Materials. What you'll buy, in the quantities you need, at what you'll actually pay. Allow for waste.
- Labor. Your hours on the job times your hourly rate. Count prep, travel, cleanup and the inspection visit, not only time on the tools.
- Overhead. Your share of insurance, the van, tools, phone and the evenings you spend quoting.
- Margin. Profit on top of your costs. Without it, a busy month only covers your bills.
Materials + (labor hours x rate) + overhead + margin = your price. Then split it into lines the client understands. They don't need to see your margin, only what each part of the job costs.
When you open a wall and find more
You price what you can see. Then the wall comes open and there's a corroded fitting at the tie-in. Don't fix it quietly and add it to the bill. Stop, take a photo, show the client, and write a change order: what you found, what it takes, what it costs. Start once they approve it.
Set this up in every estimate with a line like "Hidden damage found during work is priced separately and done only with your approval." Then the talk in the hallway is about a plan you both signed, not a surprise.
Get it signed
A verbal yes is easy to forget and easy to dispute. A signature puts the scope, price and exclusions on record. Send the estimate as a PDF and ask for it back signed, or have the client sign on the spot. In TapBill the client signs right on your phone screen while you're still at the job, and estimates are free and unlimited on every plan.
Turn the estimate into an invoice
When the job is done, the approved lines become your invoice. Bring them over, add any approved change orders, subtract the deposit and send it. With no changes, the example invoice would show $2,398.33 total, $719.50 paid and $1,678.83 due. In TapBill that's one tap from the approved estimate. The guide on how to make an invoice covers the rest, and invoice vs receipt explains what to send once the money arrives.
The same parts work in every trade. A roofing estimate prices storm repair by the square and lists each flashing, while a painting estimate spells out prep, coats and the rotted trim that has to go first. Browse all the estimate templates, or start blank in the estimate generator.
Frequently asked questions
What is an example of an estimate?
A plumber quoting a repipe is a good one: five lines (PEX supply line $1,650, two shutoff valves at $38, two drywall openings at $145, a pressure test at $95, permit and inspection at $120), 7.5% tax for a $2,398.33 total, three exclusions, a 30-day price and a 30% deposit. The full table is near the top of this guide.
What does a good estimate look like?
It fits on one page and reads in the order the job happens. Each line is something the client can picture, the total is easy to find, and the exclusions, validity and deposit sit right under it, above a signature line.
How do I calculate an estimate?
Add your material cost, your labor hours multiplied by your rate, a share of your overhead and your profit margin. That sum is your price. Build it from your own costs, not someone else's number.
How do I write an estimate for electrical work?
Use the same structure, and give the permit, the inspection and any utility coordination their own lines, since the job often depends on them. Say who pays utility company fees and how long the power will be off. The electrical estimate for a 100A to 200A panel upgrade shows how.