Free Good Faith Estimate Template

Good Faith Estimate, Quote, or Invoice?

Choose the document by what you know and what the client needs to do next. A good faith estimate explains expected costs, a quote presents a specific offer, and an invoice asks for payment.

Good Faith Estimate vs. Quote vs. Invoice

The names are not interchangeable. The client should be able to tell whether they are reviewing an expected cost, a specific offer, or a payment request.

Use a Good Faith Estimate When the Cost Is Expected

This estimate fits work where you can give the client a useful projection without pretending every detail is settled. Show how you reached the likely total and what information may still change it.

• Services planned before every quantity or choice is final
• Work that depends on inspection, access, timing, or outside costs
• A client who needs a cost breakdown before deciding
• A job where assumptions or allowances materially affect the likely price

Make the Expected Cost Specific Enough to Trust

“Good faith” should come from clear information, not vague wording. Show what you know, what you expect, and what could change.

How to Create a Good Faith Estimate

Base the estimate on the information you have now. Make the expected services and charges clear, then state the assumptions that could change the likely total.

1 2 3 4 5 6 7

1. Identify the Client and Service: Add the client, service or project, location, estimate number, and date.
2. List Expected Services: Describe the work or services you reasonably expect to provide.
3. Add Quantities and Charges: Enter the expected quantities, unit prices, allowances, and estimated amounts.
4. Include Adjustments: Show discounts, taxes, or other charges separately when they apply.
5. State the Assumptions: Explain the choices, conditions, outside costs, or unknowns behind the expected price.
6. Add Review Details: Include timing, terms, and a valid-until date or response deadline when useful.
7. Review and Send: Check the services, assumptions, and likely total, then email, print, or download the estimate.

A Simple Good Faith Estimate Example

This fictional design-planning example shows expected services and allowances before every project choice is final. The amounts are examples only.

The table shows how the expected cost is built. The assumptions below explain what the likely total is based on and what may still change.

This is a general business example. Some industries use “good faith estimate” as a defined term and may require additional information or notices. Check the rules that apply to your work.

Keep the Good Faith Estimate Clear, Not Vague

• Use plain names for the expected services and charges
• Separate known prices from allowances or other expected amounts
• Put the main assumptions close to the likely total
• Update the estimate when a meaningful change affects the expected cost
• Label the document clearly so it is not mistaken for an invoice

Related Estimate Templates and Guides

Use the main estimate template for everyday pricing, the quote comparison when the offer may be specific, and the invoice guide when billing is the next step.

• Free Estimate Template
• Quote or Estimate Guide
• Estimate Example Template
• Estimate to Invoice Guide

Good Faith Estimate Template FAQs

• What is a good faith estimate?

  A good faith estimate is an honest projection of expected services and costs based on the information available before the work begins. It should make the main assumptions and unknowns easy to see.

• Is a good faith estimate the final price?

  Not necessarily. It is still an estimate, so the final price may change when the work, quantities, conditions, choices, or outside costs change. State that clearly and explain the assumptions behind the likely total.

• How is a good faith estimate different from a quote?

  A good faith estimate shows expected services and a likely cost. A quote presents a more specific offer with a defined price, scope, validity period, and terms. Use the document that matches how certain the work and price are.

• What assumptions should I include?

  Include the facts that materially affect the likely price, such as expected quantities, client choices, access, timing, outside costs, allowances, or work that is not included.

• Should a good faith estimate have a valid-until date?

  Use one when rates, material costs, availability, or other price inputs should be reviewed after a certain date. The date tells the client when to ask for an updated estimate.

• Can a client accept a good faith estimate in Docelf?

  Yes. When you create it as an estimate in Docelf, the client can accept or decline it online. The status updates when they respond, and Docelf sends you an email notification.

• Can I create an invoice from the estimate?

  Yes. When the estimate is accepted and the work is ready to bill, create an invoice from it. Docelf copies the relevant client, item, price, and document details.

• Does one template meet every industry requirement?

  No general template can cover every regulated or industry-specific requirement. Some businesses use “good faith estimate” as a defined term, so check the information and notices required for your work before sending it.

Ready to Create a Good Faith Estimate?

Create the estimate in Docelf, explain the expected cost clearly, and keep the next invoice easy to start after acceptance.

• Show expected services and likely cost
• Keep assumptions close to the total
• Email or download a professional PDF

Create Free Estimate