A quote is a written statement that provides a fixed price for a specific product or service. Businesses typically provide it to a prospective customer, and is considered a formal offer of goods or services at a specified price. Quotes for products and services are binding and should accurately reflect their cost.
On the other hand, an estimate approximates the cost that a business provides to a customer. Unlike a quote, an estimate is not a fixed price but rather an educated guess based on available information. It is often used when the final cost is not precisely determined, such as in complex services. Estimates may change as more information becomes available, and they do not legally bind the business to provide the product or service at the estimated price.