“Close but no cigar” means that someone came very near to success but still failed to get the result. It is often used when an answer, guess, or effort is almost right, yet not right enough.
The phrase probably comes from old carnival and fairground games. In the past, cigars were common prizes. If a player nearly won but missed the target, they got nothing, so they were close, but there was no cigar to take home. That clear image helps explain why the expression still means almost, but not quite.
People now use it in everyday situations, not just games.
- We were close but no cigar on the final question.
- His estimate was close but no cigar, so the contract went to another company.
The tone is usually informal and a little playful. It can soften disappointment, especially when someone made a good effort. You would not usually use it in very formal writing, but it is common in conversation, journalism, and casual business talk.
A good simple paraphrase is: almost successful, but unsuccessful in the end.