What is a quote in business?
By Diljit Ramachandran, founder of The Invoice Generator. Published Oct 26, 2026.
A quote in business is a written price a seller offers a customer for defined work or goods before they commit. It lists what is included, the price, how long the price holds and the terms. Once the customer accepts it, that is the price agreed for the work described.
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What does a quote include?
- Who it is from and who it is for
- What work or goods are covered, and what is not
- The price for each part and the total
- How long the price is valid
- Payment terms and the next step
Why does a quote have a reference number?
The reference is the number you give a quote, so both sides can refer to it. An estimate is a best guess that can change; a quote is a price the seller commits to. Print it on the invoice that follows. A free quote template numbers it for you.
What does a quote look like?
Quote Q-205, dated 3 March, valid for 14 days. Logo design, 10 hours at 50, 500. Payment terms Net 14 from the invoice date. See estimate vs quote and quote vs invoice.
Questions
- Is a quote legally binding?
- That depends on the wording and the place. Treat a quote as a price you will honour.
- How long is a quote valid?
- As long as the quote says. Put a date on it, such as 14 days from the quote date.
Keep every document in one place
- A free account saves a copy of each invoice, remembers your clients and items, and shows what is paid and overdue.
- Pro numbers your invoices for you, emails payment reminders, and repeats the ones you send every month.
Drafted with AI assistance from public sources and our own tool, and published by Diljit Ramachandran. It has not been checked by an accountant. It is general information, not tax or legal advice. Rules differ by place; check with an accountant or your local tax office.