Estimate format

Who gives estimates

Estimates are common wherever the full scope is not clear at the start: vehicle and appliance repair, interiors and civil work, printing jobs, electrical installations, fabrication and event services. A customer wants to know "roughly how much" before saying yes, and the business cannot fix a price until it opens the machine or measures the site.

An estimate protects both sides by putting the expected cost and the assumptions in writing. If the job grows, the business can point to what was estimated and why the bill changed.

Sample estimate format

The sample uses made-up details. Switch between the Classic, Modern and Compact layouts, Print / PDF it on A4, or print a Blank template to fill by hand. Open in editor loads it into the free estimate maker, where you type straight onto the page and GST, totals and the amount in words are worked out for you.

What to put on it

• Business name, address and GSTIN
• Estimate number, date and validity
• Customer name and contact
• Job, site or item reference
• Description of work
• Parts or material with quantity and rate
• Labour or service charges
• GST rate and amount
• Estimated total
• Assumptions and exclusions
• Allowed variation and approval rule
• Advance required
• Signature or customer approval

What to include

• Estimate number and date, and how long it is valid.
• Customer's name, phone, and the site or item (vehicle number, machine model).
• A short description of the work as understood.
• Material or parts lines with quantity and rate, and labour or service charges separately.
• GST on each part and service at the applicable rate.
• Assumptions and exclusions: "Civil work, painting and permits not included."
• The variation you allow, for example "Final bill may vary by up to 10%; any larger change will be approved by you first."
• Advance required, if any.

Worked example: an AC service job

GST rates differ between parts and services and are notified separately, so check each line; 18% is used here only to keep the example simple. If the technician later finds a leaking coil, the customer gets a revised estimate before the extra work. For how a repair job moves from estimate to bill, see job card and service invoice.

Estimate vs quotation

A quotation is a fixed offer: these items at these rates. An estimate is a reasoned guess. Traders selling standard goods give quotations; service and project businesses give estimates. The estimate vs quotation guide covers the difference with more examples. Neither is a tax document and neither goes into GST returns.

From estimate to invoice

1. Customer approves the estimate, ideally by signing or replying on WhatsApp.
2. Work starts; a job card tracks parts used and hours spent.
3. Any change beyond the agreed variation goes back for approval as a revised estimate (E-118 R1).
4. On completion, the tax invoice is raised for the actual parts and labour.

In TallyPrime the estimate itself is not an accounting entry; the invoice is a Sales voucher with stock items for parts and a service ledger for labour.

Wording that avoids disputes

A few lines on every estimate save long arguments later: "Parts prices are as on today and may change"; "Any extra work found after opening will be informed before it is done"; "Inspection charge of ₹300 applies if the job is not taken up"; "Item to be collected within 15 days of completion". Keep them short and in the language your customers read. Ask the customer to reply OK on WhatsApp or sign, so the approval is on record.

Common mistakes

• A single lump-sum figure with no breakdown, which invites bargaining.
• No exclusions, so the customer assumes everything is included.
• Starting extra work without approval and then billing it.