Quote template
A quote (or quotation) tells a customer exactly what you'll supply and what it will cost, and for how long that price stands. This free Excel template works out the line totals, discounts, VAT and grand total for you, and includes a quote number, validity date, terms and a space for the customer to accept.
Running a company of 30 to 200 people? Documents like this are now worth money.
Unlike an estimate, a quote is usually a fixed price for the work described, which is why the details and the terms matter.
What's in the template
The quote sheet has your header, the customer's details, a quote number, date and valid-until date, up to 15 line items with a discount per line, then subtotal, VAT and total, worked out for you. Below that are your terms and a space to sign and accept. The example sheet is a fictional supplier quoting for warehouse racking:
| Description | Qty | Unit price | Discount | Line total |
|---|---|---|---|---|
| Warehouse racking survey and design | 1 | 850.00 | 850.00 | |
| Pallet racking bays (supply and install) | 24 | 310.00 | 5% | 7,068.00 |
| Safety signage pack | 2 | 95.00 | 190.00 | |
| Load notices and inspection labels | 24 | 6.00 | 144.00 | |
| Subtotal | 8,252.00 | |||
| VAT at 20% | 1,650.40 | |||
| Total | 9,902.40 | |||
How to write a quote customers say yes to
- Describe the work in the customer's words. "Pallet racking, 24 bays, supplied and installed" beats a part number.
- Split it into lines so the customer can see what each part costs. One lump sum invites haggling over the whole thing.
- Show any discount openly on the line it applies to.
- State what's not included (delivery, out-of-hours work, permits), so there are no surprises later.
- Set a validity date. 30 days is common; shorter if your costs move quickly.
- Make acceptance easy: a signature, a purchase order number, or a reply to the email.
VAT on quotes
In the UK, the standard rate of VAT is 20%, with reduced and zero rates for some goods and services. Show prices so the customer can see the VAT clearly, and change the rate cell to match what you sell, or set it to 0% if you aren't VAT-registered. A quote isn't a VAT invoice: you still issue an invoice when the work is done. In the US, sales tax depends on the state and on what you sell.
What to put in the terms
- Payment terms: when you'll invoice (on order, on delivery, in stages) and when payment is due.
- What the price includes and excludes, such as delivery, installation, travel and disposal of old equipment.
- Lead time: how soon after acceptance the work can start or the goods ship.
- Changes: how extra work is priced if the scope changes after acceptance.
- How to accept, and who on the customer's side can sign.
Keep the terms on the quote itself rather than in a separate document nobody reads; the template leaves room for four lines and an acceptance signature.
Quote vs estimate
An estimate is your best guess and can change. A quote is a price for a defined job, and customers will expect you to hold it. If the scope is uncertain, quote for the part you can define and estimate the rest, and say which is which.
Common mistakes
- No validity date, so a customer accepts a two-year-old price.
- Vague descriptions that lead to disputes about what was included.
- Forgetting VAT or showing it inconsistently between lines and the total.
- No quote number, which makes it hard to match the order and invoice later.
Frequently asked questions
Is a quote legally binding?
Once a customer accepts a quote, it can form a contract on its terms, which is why the description and terms matter. This template isn't legal advice; check anything unusual with an adviser.
Should quotes include VAT?
If you're VAT-registered, show VAT clearly. Business customers usually look at the net price; consumers expect the total including VAT.
How long should a quote be valid?
Commonly 30 days. Use a shorter period if your material or labour costs are changing quickly.