Proforma Invoice vs Quote vs Estimate: Which to Send

A client asks, "Can you send me something with the price on it?" That one sentence could mean three different documents: an estimate, a quote or a proforma invoice. They can look almost identical on the page, but they commit you to different things and belong at different points in a deal.

Sending the wrong one can leave you held to a rough figure you only meant as a guide, or chasing a payment against a document your client's finance team can't process. This guide explains how the three differ and which to send at each stage. If you mainly want to understand how a proforma differs from a real invoice, start with our guide to proforma invoices vs invoices.

The short answer: three documents, three jobs

• An estimate is an informed guess. It tells the client roughly what the work will cost so they can decide whether to go further.
• A quote is a specific offer. It sets out what you will deliver, at what price, and for how long that price stands.
• A proforma invoice is a preview of the invoice to come. It shows the near-final terms in invoice format, usually after the deal is agreed in principle, so the buyer can act on it.

None of the three is a tax document. Only the final invoice records the sale for VAT and accounting purposes.

Side-by-side comparison

When an estimate is the right choice

Use an estimate when you don't yet know enough to commit to a price. The scope may still be moving, or the cost may depend on things you can't see yet, such as the state of a client's existing website or how many revisions they'll want.

A useful estimate does three things:

• Gives a range or a clearly approximate figure, such as "around €3,000 to €4,000".
• States what the figure assumes, for example two rounds of revisions and content supplied by the client.
• Says plainly that it is an estimate and that a firm quote will follow.

The label alone won't always protect you. If the wording reads like a firm offer, a client may reasonably treat it as one, and if the final cost ends up far above your estimate you can expect a difficult conversation. Tell the client as soon as you can see the cost moving.

When to send a quote

Send a quote once you can describe the work and stand behind the price. It is the document most clients expect when they are comparing suppliers, and its value lies in being specific.

A strong quote includes:

• A clear description of what's included and, just as importantly, what isn't.
• Line-item prices, showing tax separately.
• A validity date, so an old price can't come back to haunt you months later.
• Payment terms, including any deposit you'll require.
• A simple way to accept, such as a signature or a written confirmation.

Is a quote legally binding?

It can be. In many legal systems, a clear offer that the other party accepts can form a contract, and that can happen with a quote. The details depend on your country, your wording and your terms, and consumer clients often have extra protections. If a contract involves significant money, it's worth asking a local adviser to review your standard terms. In the meantime, the practical habit is simple: don't send a quote you aren't prepared to honour, and always include an expiry date.

For a walkthrough of the process, see our guide to creating quotes and converting them into invoices.

When a proforma invoice earns its place

A proforma comes in when a quote isn't quite enough, usually because someone else needs to act on the numbers. Common situations include:

• Internal approval. A client's finance team needs a document in invoice format to raise a purchase order or release a budget.
• Payment before work starts. You want a deposit or full payment up front, and the client needs a document showing what to pay.
• International shipments. A proforma can give a buyer, carrier or customs broker the expected details ahead of shipping. It may not be accepted in place of a commercial invoice, so check requirements with your carrier or broker. If you're selling abroad, our guide to invoicing international clients covers the billing side.

Mark it clearly as "Proforma invoice", and give it its own reference rather than a number from your invoice series. Tax authorities don't treat it as a VAT invoice. In the UK, for example, it's common practice to add "This is not a VAT invoice", and a client shouldn't reclaim VAT on the strength of a proforma alone.

The deposit question: where most mistakes happen

A proforma doesn't record a sale, but money changes things. Under the EU VAT Directive (Article 65), when a payment is made before goods or services are supplied, VAT generally becomes chargeable when the payment is received, on the amount received. So the VAT on a real deposit usually can't wait until the job is finished, even though the document that requested it was only a proforma.

In practice, that means:

1. You send a proforma asking for the deposit. Nothing is recorded for VAT yet.
2. The client pays. This is the point at which you normally need to issue a real invoice for the amount received.
3. When the work is delivered, you invoice the remaining balance and show the deposit already invoiced.

Rules and timing vary by country, and some deposits, such as genuinely refundable security deposits, can be treated differently. Check your tax authority's guidance or ask your accountant. Freelancers based in Spain can read our detailed guide to proforma invoices, IVA and VeriFactu.

A worked example from first call to final invoice

Suppose you're a freelance web designer and a company asks about a new website. These are illustrative figures, and each document does its own job:

1. Estimate. After the first call, you say the project should cost around €3,000 to €4,000, depending on the number of pages.
2. Quote. Once the scope is agreed, you send a quote for €3,600 plus VAT, valid for 30 days, with 50% due before work begins.
3. Proforma. The client accepts, but accounts needs a document before releasing funds. You send a proforma for the €1,800 deposit plus VAT.
4. Deposit invoice. The money arrives, and you issue a real, numbered invoice for it.
5. Final invoice. At launch, you invoice the remaining €1,800 plus VAT, referencing the deposit invoice.

Not every job needs all five. Many small projects go straight from quote to invoice, and that's fine. Clear payment terms from the start also help, as we explain in our tips for getting paid faster.

Mistakes that cause real problems

• Using "invoice" as a catch-all. A document labelled only "Invoice" can look like a real one, and a client may try to book it as such.
• Letting a quote stay open forever. Without an expiry date, you may be asked to honour prices that no longer cover your costs.
• Sending an estimate that reads like a quote. If you aren't ready to commit, say so explicitly.
• Numbering proformas in your invoice series. This can leave unexplained gaps in your official sequence.
• Ignoring a paid proforma. Once money arrives, the VAT and record-keeping questions start, whatever the document was called.

Frequently asked questions

Are a quote and an estimate the same thing?

Not quite, although people often use the words interchangeably. An estimate is an approximate figure, while a quote is a specific price you're offering to work for. Label yours clearly, because the wording matters more than the habit.

Can I send a proforma invoice instead of a quote?

You can, but a quote is usually better while the deal is still open, because it's designed to be reviewed and accepted. A proforma works best once the terms are essentially settled.

Does a client have to pay a proforma invoice?

A proforma doesn't create a payment obligation by itself. Any obligation comes from the agreement between you, such as an accepted quote or contract. Many clients will still pay against a proforma when you've agreed up-front payment.

Do I need to issue a quote before every invoice?

Generally not. For repeat work at an agreed rate, you can often invoice directly. Quotes are most useful for new clients, bigger jobs or anything with a changing scope.

Keep quotes and invoices connected

The biggest practical risk in this process is retyping: the numbers a client approved can drift from the numbers on the final invoice. In Facturi, you create and send a quote as a PDF, track it through its statuses (draft, sent, accepted, rejected or expired), and convert the accepted quote into an invoice in one click. The lines, prices and taxes carry over, and the invoice takes its own number from your invoice series. Try Facturi free and send your next quote in minutes.