How to Write a Business Quotation: Example & Free Template (2026)

What to Include in a Business Quotation

Work through the quotation in this order. Each line below is one decision; the field-by-field table on our quotation template page shows where each item sits on the page.

1. Your business details. Name, logo, address and contact details, plus any tax or registration number your customers expect to see.
2. The customer's details. The exact legal name of the business you are quoting, and the person or department it is for.
3. A quotation number. A unique reference the customer can quote back on their purchase order.
4. The issue date and a valid-until date. The second one is what stops an old price being accepted months later.
5. The scope. What you will supply, described specifically, and what is excluded.
6. Itemized prices. Quantity, unit price and amount on each line.
7. Totals. Subtotal, any discount, tax and the total, with a clear statement of whether prices include tax.
8. Payment terms. Deposit, milestones, and when each payment falls due. Our payment terms guide explains the usual options.
9. Delivery or timeline. When the work starts or the goods ship, counted from acceptance.
10. Terms and conditions. Anything the price depends on, such as revision limits or how changes are priced.
11. How to accept. An acceptance line to sign and date, or clear instructions to confirm in writing.

Business Quotation Example (Filled In)

Here is the same layout as our free quotation template, filled in for a fictional design studio. The numbered markers point to the fields that do the most work.

1. Quote no. (Q-2026-014). The reference the customer quotes on their purchase order and that you repeat on the invoice, so all three documents line up.
2. Valid until (25 Oct 2026). Thirty days after the issue date. After that date the studio can re-price before the customer accepts.
3. Acceptance (name & signature). The customer signs the quotation itself, so there is no doubt later about which version was approved.
4. Notes. Exclusions (hosting and domain registration) and the start date. If the customer later asks why something was not included, this is the line you point to.

Checking the arithmetic: 1 × 1,200.00 = 1,200.00; 5 × 350.00 = 1,750.00; 8 × 60.00 = 480.00. The three lines add up to a subtotal of 3,430.00. Tax is left at 0 in this sample because the right rate depends on where you and the customer are, so the estimated total is also 3,430.00. The Excel version of the template does this arithmetic for you.

How to Make a Quotation Step by Step

Follow these eight steps to prepare a quotation that is clear, checkable and easy to accept.

1. 01

   Put Your Business Details in the Header

   Your logo and full legal business name should be prominent, with your contact details. If you have a tax or business registration number your customers need to see, such as a VAT or GST number, add it here.

2. 02

   Give the Quotation a Traceable Number

   Use a sequential reference (e.g., Q-2026-104), so the quote, the customer's purchase order and your invoice can be matched later. Our invoice numbering guide covers the same rules for sequences.

3. 03

   Address the Right Customer

   For B2B transactions, use the customer's exact legal entity name and the right department or contact. A quote addressed to the wrong entity usually has to be reissued, and the purchase order and invoice that follow will not match it.

4. 04

   Describe Each Line Specifically

   Vague descriptions are the enemy. Instead of "Website Design", use "5-Page Responsive Website Design, Homepage, Contact, About, Services, Blog".

   💡 Scope Creep Protection: Always include a line stating what is excluded (e.g., "Hosting fees and domain registration are excluded").
5. 05

   Set a Validity Date

   A quote without an expiry date leaves your price open indefinitely. Pick a period that matches how quickly your own costs move: 14 or 30 days are common choices, and a shorter period suits volatile material prices. Our Quotation Generator pre-fills Quote Valid Until 30 days after today's date, and you can change it.

6. 06

   State the Payment Schedule and Terms

   Don't just say "Due on Receipt". Specify: "50% Deposit to commence work, 50% upon completion." For a full breakdown of standard payment term options, see our invoice payment terms guide. This secures your cash flow.

7. 07

   Show Subtotal, Tax and Total

   Show the subtotal, any discount, the tax and the total, and say whether prices include tax. Tax treatment depends on where you and the customer are (e.g., Reverse Charge Mechanism for EU B2B).

8. 08

   Tell the Customer How to Accept

   Remove friction by saying exactly how to accept: sign and date the acceptance line, confirm in writing, or send a purchase order quoting your quotation number.

   Generate a professional quote with a validity date using our free tool.

Formal Quotation vs Informal Quote

An informal quote is a price given in a conversation, a chat message or a one-line email. A formal quotation is a standalone document, usually a PDF, that the customer can file, pass through an internal approval and sign. Both state a price; the formal one adds what a buyer's accounts or procurement team needs before they can say yes.

What makes a quotation formal:

• Letterhead: your business name, logo and contact details at the top.
• A quotation number the buyer can reference on their purchase order.
• An issue date and a valid-until date.
• Itemized prices with the tax treatment stated.
• Written terms: payment, delivery, exclusions.
• An acceptance line for the customer's name, signature and date.

Send a formal quotation when the buyer is a company, the amount is significant, or the work runs over weeks. Our Quotation Generator produces that document as a PDF. The email that carries it matters too; here is a formal cover email, and a less formal version for existing relationships.

Quotations for Services, Contracts and Goods

The layout stays the same; what changes is how you express the price.

How to Make Your Own Quote Template in Word or Excel

The general steps (page setup, tables, saving a reusable template) are in our guide on how to make an invoice template. A quote template needs three things on top of an invoice layout:

• A validity field. Put Valid until next to the issue date, not in the small print.
• An acceptance line. Name, signature and date, so the customer signs the offer itself.
• A clear heading such as QUOTE, QUOTATION or ESTIMATE, plus a note that it is not an invoice.

Our own Excel file, quotation-template.xlsx, uses these formulas, which you can copy into your own sheet:

• Line amount (rows 15 to 24): =IF(OR(B15="",C15=""),"",B15*C15) — quantity × unit price, blank until both cells are filled.
• Subtotal (D25): =SUM(D15:D24)
• Tax (estimated) (D26): =ROUND(D25*B26/100,2), where B26 is the tax rate % you type in. It ships at 0.
• Estimated total (D27): =D25+D26

The workbook is set to recalculate fully when it opens. It keeps the header, document fields, party blocks, item table, totals and the closing note, but has no acceptance line or ruled Notes lines; if you want a signature block, start from the Word version instead.

Quote vs. Estimate vs. Invoice

A quote is a firm price for a defined scope, held until its validity date. An estimate is an approximate figure that can change if the work turns out to be different. Neither asks for payment, and neither creates an entry in your books. The invoice comes after delivery, asks for payment, and is what records the sale. A proforma invoice sits in between: it looks like an invoice but is usually sent before the sale is final.

For the full side-by-side comparison, read proforma invoice vs invoice. Blank files for each document: quotation / estimate template and proforma invoice template; for a clearly labelled estimate, use the estimate generator.

Acceptance and E-Signatures: What the Law Says

In many legal systems a quotation that is specific enough can be treated as an offer, and acceptance on its terms can turn it into a contract. Whether a particular quote is an offer depends on its wording and on the law that applies to you and your customer. The texts below are quoted word for word from the official sources; each law has conditions and exceptions set out elsewhere in the same act.

Strategy: The Psychology of Pricing in Quotes

Two pricing techniques you can use in a quote:

Disclaimers and Protective Clauses

The terms on your quote can limit your exposure, for example a force majeure clause for events outside your control, or a price-variation clause where material costs move quickly. No disclaimer overrides the consumer-protection rules that apply where your customer is, so keep clauses specific and fair. For copy-ready wording with notes on what each clause can and cannot do, use our quote disclaimer template; service providers will also find related advice in our consulting billing best practices.