diff --git a/app/Http/Controllers/Company/Invoice/InvoicesController.php b/app/Http/Controllers/Company/Invoice/InvoicesController.php
index 669b63f8..6ac7b6c0 100644
--- a/app/Http/Controllers/Company/Invoice/InvoicesController.php
+++ b/app/Http/Controllers/Company/Invoice/InvoicesController.php
@@ -6,8 +6,10 @@ use App\Http\Controllers\Controller;
 use App\Http\Requests;
 use App\Http\Requests\DeleteInvoiceRequest;
 use App\Http\Requests\SendInvoiceRequest;
+use App\Http\Resources\EstimateResource;
 use App\Http\Resources\InvoiceResource;
 use App\Jobs\GenerateInvoicePdfJob;
+use App\Models\Estimate;
 use App\Models\Invoice;
 use App\Services\InvoiceService;
 use Illuminate\Http\JsonResponse;
@@ -147,6 +149,15 @@ class InvoicesController extends Controller
         return new InvoiceResource($newInvoice);
     }
 
+    public function convertToEstimate(Request $request, Invoice $invoice)
+    {
+        $this->authorize('create', Estimate::class);
+
+        $estimate = $this->invoiceService->convertToEstimate($invoice);
+
+        return new EstimateResource($estimate);
+    }
+
     public function changeStatus(Request $request, Invoice $invoice)
     {
         $this->authorize('send invoice', $invoice);
diff --git a/app/Models/Invoice.php b/app/Models/Invoice.php
index 35f22c4b..6c9f9a89 100644
--- a/app/Models/Invoice.php
+++ b/app/Models/Invoice.php
@@ -3,6 +3,7 @@
 namespace App\Models;
 
 use App\Services\InvoiceService;
+use App\Services\Pdf\PdfTemplateUtils;
 use App\Support\PdfHtmlSanitizer;
 use App\Traits\GeneratesPdfTrait;
 use App\Traits\HasCustomFieldsTrait;
@@ -12,6 +13,7 @@ use Illuminate\Database\Eloquent\Model;
 use Illuminate\Database\Eloquent\Relations\BelongsTo;
 use Illuminate\Database\Eloquent\Relations\HasMany;
 use Illuminate\Database\Eloquent\Relations\MorphMany;
+use Illuminate\Support\Str;
 use Nwidart\Modules\Facades\Module;
 use Spatie\MediaLibrary\HasMedia;
 use Spatie\MediaLibrary\InteractsWithMedia;
@@ -295,6 +297,22 @@ class Invoice extends Model implements HasMedia
         $query->orWhere('id', $invoice_id);
     }
 
+    public function getEstimateTemplateName(): string
+    {
+        $templateName = Str::replace('invoice', 'estimate', $this->template_name);
+
+        $names = [];
+        foreach (PdfTemplateUtils::getFormattedTemplates('estimate') as $template) {
+            $names[] = $template['name'];
+        }
+
+        if (! in_array($templateName, $names)) {
+            $templateName = 'estimate1';
+        }
+
+        return $templateName;
+    }
+
     public function scopeWhereCompany($query)
     {
         $query->where('invoices.company_id', request()->header('company'));
diff --git a/app/Services/InvoiceService.php b/app/Services/InvoiceService.php
index fae21c4c..b4cdf864 100644
--- a/app/Services/InvoiceService.php
+++ b/app/Services/InvoiceService.php
@@ -9,6 +9,7 @@ use App\Mail\SendInvoiceMail;
 use App\Models\Company;
 use App\Models\CompanySetting;
 use App\Models\CustomField;
+use App\Models\Estimate;
 use App\Models\ExchangeRateLog;
 use App\Models\Invoice;
 use App\Services\Pdf\PdfTemplateUtils;
@@ -351,6 +352,74 @@ class InvoiceService
         return $newInvoice;
     }
 
+    public function convertToEstimate(Invoice $invoice): Estimate
+    {
+        $invoice->load(['items', 'items.taxes', 'customer', 'taxes']);
+
+        $serial = (new SerialNumberService)
+            ->setModel(new Estimate)
+            ->setCompany($invoice->company_id)
+            ->setCustomer($invoice->customer_id)
+            ->setNextNumbers();
+
+        $exchangeRate = $invoice->exchange_rate;
+
+        $estimate = Estimate::create([
+            'creator_id' => $invoice->creator_id,
+            'estimate_date' => Carbon::now()->format('Y-m-d'),
+            'expiry_date' => Carbon::now()->addDays(30)->format('Y-m-d'),
+            'estimate_number' => $serial->getNextNumber(),
+            'sequence_number' => $serial->nextSequenceNumber,
+            'customer_sequence_number' => $serial->nextCustomerSequenceNumber,
+            'reference_number' => $serial->getNextNumber(),
+            'customer_id' => $invoice->customer_id,
+            'company_id' => $invoice->company_id,
+            'template_name' => $invoice->getEstimateTemplateName(),
+            'status' => Estimate::STATUS_DRAFT,
+            'sub_total' => $invoice->sub_total,
+            'discount' => $invoice->discount,
+            'discount_type' => $invoice->discount_type,
+            'discount_val' => $invoice->discount_val,
+            'total' => $invoice->total,
+            'tax_per_item' => $invoice->tax_per_item,
+            'discount_per_item' => $invoice->discount_per_item,
+            'tax' => $invoice->tax,
+            'notes' => $invoice->notes,
+            'exchange_rate' => $exchangeRate,
+            'base_discount_val' => $invoice->discount_val * $exchangeRate,
+            'base_sub_total' => $invoice->sub_total * $exchangeRate,
+            'base_total' => $invoice->total * $exchangeRate,
+            'base_tax' => $invoice->tax * $exchangeRate,
+            'currency_id' => $invoice->currency_id,
+            'sales_tax_type' => $invoice->sales_tax_type,
+            'sales_tax_address_type' => $invoice->sales_tax_address_type,
+        ]);
+
+        $estimate->unique_hash = Hashids::connection(Estimate::class)->encode($estimate->id);
+        $estimate->save();
+
+        $this->documentItemService->createItems($estimate, $invoice->items->toArray());
+
+        if ($invoice->taxes) {
+            $this->documentItemService->createTaxes($estimate, $invoice->taxes->toArray());
+        }
+
+        if ($invoice->fields()->exists()) {
+            $customFields = [];
+
+            foreach ($invoice->fields as $data) {
+                $customFields[] = [
+                    'id' => $data->custom_field_id,
+                    'value' => $data->defaultAnswer,
+                ];
+            }
+
+            $estimate->addCustomFields($customFields);
+        }
+
+        return $estimate;
+    }
+
     public function changeStatus(Invoice $invoice, string $status): void
     {
         if ($status == Invoice::STATUS_SENT) {
diff --git a/lang/en.json b/lang/en.json
index ddd7cc46..58639961 100644
--- a/lang/en.json
+++ b/lang/en.json
@@ -467,6 +467,8 @@
     "cloned_successfully": "Invoice cloned successfully",
     "clone_invoice": "Clone Invoice",
     "confirm_clone": "This invoice will be cloned into a new Invoice",
+    "convert_to_estimate": "Convert to Estimate",
+    "confirm_convert_to_estimate": "This invoice will be converted into a new Estimate",
     "item": {
       "title": "Item Title",
       "description": "Description",
diff --git a/resources/scripts-v2/api/services/invoice.service.ts b/resources/scripts-v2/api/services/invoice.service.ts
index 2d86b169..a424e4ce 100644
--- a/resources/scripts-v2/api/services/invoice.service.ts
+++ b/resources/scripts-v2/api/services/invoice.service.ts
@@ -103,6 +103,11 @@ export const invoiceService = {
     return data
   },
 
+  async convertToEstimate(id: number): Promise<ApiResponse<Record<string, unknown>>> {
+    const { data } = await client.post(`${API.INVOICES}/${id}/convert-to-estimate`)
+    return data
+  },
+
   async changeStatus(payload: InvoiceStatusPayload): Promise<ApiResponse<Invoice>> {
     const { data } = await client.post(`${API.INVOICES}/${payload.id}/status`, payload)
     return data
diff --git a/routes/api.php b/routes/api.php
index 530394b5..402d4b26 100644
--- a/routes/api.php
+++ b/routes/api.php
@@ -267,6 +267,8 @@ Route::prefix('/v1')->group(function () {
 
             Route::post('/invoices/{invoice}/clone', [InvoicesController::class, 'clone']);
 
+            Route::post('/invoices/{invoice}/convert-to-estimate', [InvoicesController::class, 'convertToEstimate']);
+
             Route::post('/invoices/{invoice}/status', [InvoicesController::class, 'changeStatus']);
 
             Route::post('/invoices/delete', [InvoicesController::class, 'delete']);