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Free Estimate Generator: Create a Professional Estimate Online
An estimate gives your client an approximate cost for a job before the work begins, with the understanding that the final price can change. Whether you're a freelancer, contractor, or small business, this free estimate generator lets you build a clear, professional estimate and download it as a PDF in minutes. No signup, no cost, right on this page.
Share an approximate project cost when scope may change. Send it before work begins.
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| Description | Qty | Rate | Amount |
|---|---|---|---|
| — | 1 | $0.00 | $0.00 |
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Estimate rules by jurisdiction
Each figure below is taken from the tax authority or statute that sets it, and links to the official page it came from so you can check it yourself.
Statutory late payment interest and compensation on overdue commercial invoices
Covers statutory interest and fixed recovery compensation that a business may charge on an overdue business-to-business commercial invoice in the United Kingdom and under the EU late payment Directive, plus the separate US federal Prompt Payment Act rate that applies only to US federal agencies paying their vendors; it does not cover US state-level commercial interest limits, consumer debts, or contractually agreed interest rates that override the statutory default.
| Jurisdiction | Statutory interest rate | Fixed compensation | Governing law | Source |
|---|---|---|---|---|
| Jurisdiction United Kingdom | Statutory interest rate Bank of England base rate + 8 percentage points (Bank Rate 3.75% as at 2026-09-15, unchanged since 18 December 2025, giving 11.75%) | Fixed compensation £40 for debts up to £999.99; £70 for £1,000 to £9,999.99; £100 for £10,000 or more | Governing law Late Payment of Commercial Debts (Interest) Act 1998 — fixed sum under s.5A; rate of statutory interest set by order under s.6 | Source GOV.UK (UK Government)Late commercial payments: charging interest and debt recovery — Claim debt recovery costs on late payments · No effective date stated on the page; bands unchanged in the Act as amended. Bank of England Bank Rate of 3.75% was held at the 30 July 2026 MPC announcement. |
| Jurisdiction United Kingdom (statutory text) | Statutory interest rate Set by order of the Secretary of State under s.6 of the Act | Fixed compensation £40 for a debt under £1,000; £70 for £1,000 or more but under £10,000; £100 for £10,000 or more | Governing law Late Payment of Commercial Debts (Interest) Act 1998, s.5A | Source The National Archives / legislation.gov.uk (UK Government)Late Payment of Commercial Debts (Interest) Act 1998, section 5A (Compensation arising out of late payment) · Section 5A as amended; no separate effective date shown on the fetched section page. |
| Jurisdiction European Union | Statutory interest rate Reference rate + at least 8 percentage points (minimum harmonised floor; each Member State sets the national rate) | Fixed compensation Minimum EUR 40 fixed sum, plus reasonable recovery costs above that sum | Governing law Directive 2011/7/EU, Articles 2(6) and 6 | Source Publications Office of the European Union (EUR-Lex)Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions (recast) · Directive 2011/7/EU of 16 February 2011; no amendment date captured on the fetched consolidated text. |
| Jurisdiction United States — federal government payments only | Statutory interest rate 4.75% for 1 July 2026 through 31 December 2026 (set semi-annually by Treasury) | Fixed compensation None — no fixed compensation sum; interest penalty only | Governing law Prompt Payment Act (31 U.S.C. ch. 39), administered by the Bureau of the Fiscal Service | Source Bureau of the Fiscal Service, U.S. Department of the TreasuryPrompt Payment: Interest Rates · Effective 1 July 2026 through 31 December 2026. Prior period Jan-26 through Jun-26 was 4.125%. |
| Jurisdiction United States — private commercial (B2B) | Statutory interest rate No federal statutory late-payment interest rate; the Prompt Payment Act sets rates only for payments made by Federal agencies | Fixed compensation No federal fixed compensation sum | Governing law Outside the scope of the Prompt Payment Act (31 U.S.C. ch. 39); no federal equivalent | Source |
Figures confirmed against the linked official sources on . Thresholds and rates change, so check the source before relying on a figure for filing or a legal deadline. Invoity generates documents and does not provide tax, legal or accounting advice.
- The two United Kingdom rows describe the same entitlement from two primary sources (GOV.UK guidance and the Act itself) and must not be read as two separate charges. If the table is published with one UK row, use the GOV.UK row and cite legislation.gov.uk alongside it.
- The UK figure of 11.75% is arithmetic (Bank of England base rate 3.75% + 8 percentage points). That combined number does not appear on any government page; only the formula and the base rate were verified. GOV.UK does not state which date's base rate governs a given six-month period, so the applicable base rate for a specific invoice should be confirmed before it is charged.
- The Bank of England base rate changes at MPC meetings and the UK figure will go stale without warning. Verified at 3.75% on 2026-09-15, held at the announcement published 30 July 2026.
- Directive 2011/7/EU is not directly enforceable against a debtor. It sets minimum standards that each EU Member State transposes into national law, and national rates and compensation amounts may be higher than the reference rate + 8 pp and EUR 40 floors. Businesses must apply their own Member State's implementing law, not the Directive itself.
- No numeric value for the EU 'reference rate' (the ECB main refinancing operations rate) was fetched in this session, so no headline EU percentage is published in this table. The reference rate is also reset half-yearly under the Directive.
- The US Prompt Payment rate of 4.75% applies ONLY to late payments by US federal agencies to their vendors and contractors. It is not a rate a business may charge another business on a private invoice. It expires 31 December 2026 and is reset semi-annually.
- There is no verified US row for private business-to-business late payment interest. That row was marked unverified and should be dropped. In the United States, commercial interest limits are a matter of state law and vary by state; no state rates were verified from official state sources in this session, and none should be published without individual verification.
- All values were verified on 2026-09-15. Statutory rates, bands and reference rates change on their own schedules. Re-verify every figure against the cited URL before relying on it for an actual invoice, and do not treat this table as legal advice.
Estimates by the Numbers: Win Rates and the Payment Gap
A clear, written estimate is one of the strongest tools a US contractor or service business has for winning work and getting paid. Most pros already convert well: according to Jobber's 2026 Home Service Trends Report, 69% of service professionals report a quote win rate above 50%, and more than a third close over 70% of their quotes. The real risk comes after the job is won. According to Intuit QuickBooks' 2025 US Small Business Late Payments Report, 56% of small businesses are owed money on unpaid invoices, averaging about $17,500 each, and 47% have invoices more than 30 days overdue. A detailed estimate that flows straight into an invoice sets clear terms up front and helps close that payment gap.
What an Estimate Is and When to Use It
An estimate is your best approximation of what a project will cost before you start the work. Unlike a fixed price, it is not a binding commitment, the final amount can move up or down as the scope becomes clear. Estimates are standard in trades and project-based work where surprises are common: home renovations, repairs, custom builds, design projects, and open-ended consulting. A contractor often can't know exactly what a job involves until walls are opened or materials are priced, so an estimate sets honest expectations up front. Send an estimate when a client asks "roughly how much?" and you want to win the job without overpromising. Once the scope is locked and the work is done, you follow up with an invoice for the actual amount owed.
What to Include in an Estimate
A clear estimate should contain your business name, logo, address, and contact details, plus the client's name and address. Add an estimate number and the date issued, along with an expiration or "valid until" date so pricing isn't open-ended. List each service or material as a separate line item with quantities and unit prices, then show a subtotal, any applicable sales tax, and an approximate total. Crucially, label the figure as an estimate, not a final price, and note the assumptions it's based on and what could cause the cost to change. Include payment terms, your Tax ID or EIN if relevant, and a short notes section for scope details. This generator prompts you for each field so nothing important gets left off.
How an Estimate Differs From an Invoice, Quote, or Receipt
These four documents look alike but do different jobs. An estimate is an approximate price given before work starts, an informed guess that can change. A quote is also issued before work, but it's a firm, fixed price you commit to, usually binding once the client accepts. An invoice comes when payment is due: it requests the actual amount owed for work delivered, with a due date and payment terms. A receipt comes last, confirming that payment has already been made. A simple way to remember it: estimates and quotes come before the work, invoices come when payment is due, and receipts come after the money changes hands. Reach for an estimate when the scope isn't certain and you don't want to lock in a number you can't honor.
How to Create an Estimate Free on This Page
You can make an estimate right here, free and with no signup required. Start by entering your business details and your client's information. Add each service or item as a line, with a description, quantity, and unit price, the running total updates automatically. Apply any sales tax, set an estimate number and a valid-until date, and add notes spelling out your assumptions and what might change the final cost. Preview the document live as you type, then download a clean, professional PDF you can email or print. Because the figure is an estimate, it stays clearly labeled as approximate. When the job is confirmed and complete, you can reuse the same details to generate a matching invoice.
Frequently asked questions
Is this estimate generator really free, and do I need to sign up?
You can create, customize, and preview an estimate free without signing up. Download a PDF for $2.29 per document, or choose Unlimited at $9/month or $69/year.
Is an estimate legally binding in the US?
Generally, no. An estimate is an approximate, good-faith figure, not a contract, so the final price can change as the scope becomes clear. A quote, by contrast, is usually treated as a firm offer once the client accepts. To stay protected, label the document as an estimate, state your assumptions, and explain what could move the price up or down.
Should I charge sales tax on an estimate?
An estimate isn't a payment request, so no tax is actually collected at this stage. But it's good practice to show approximate sales tax as a separate line so the total reflects what the client can expect to pay. Rates vary by state and locality, so apply the rate for where the work or sale takes place, then confirm the exact amount on the final invoice.
How do I turn an estimate into an invoice once the work is approved?
When the client approves the job and the work is done, you bill the actual amount with an invoice rather than the estimated figure. The easiest way is to reuse the same business details, client information, and line items, then update any quantities or prices that changed, add an invoice number and due date, and relabel it as an invoice. Invoity lets you create a matching invoice from the same details.
How long should an estimate stay valid?
Most freelancers and small businesses set an estimate to expire in 14 to 30 days, though you can choose any window. An expiration date protects you from rising material or labor costs and signals that pricing isn't open-ended. Add a clear "valid until" date to your estimate, and if a client comes back after it lapses, simply generate an updated version with current pricing.
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