Computing quantum state fidelity will be important to verify and characterize states prepared on a quantum computer. In our recent work, we propose novel lower and upper bounds for the fidelity based on the “truncated fidelity” which is projecting an input state onto its $m$-largest eigenvalues. Our bounds can be refined, i.e., they tighten monotonically with $m$. To compute our bounds, we introduce a hybrid quantum-classical algorithm, called Variational Quantum Fidelity Estimation, that involves three steps: (1) variationally diagonalize $\rho$, (2) compute matrix elements of $\sigma$ in the eigenbasis of $\rho$, and (3) combine these matrix elements to compute our bounds. Our algorithm is aimed at the case where $\sigma$ is arbitrary and $\rho$ is low rank, which we call low-rank fidelity estimation, and we prove that a classical algorithm cannot efficiently solve this problem. Finally, we demonstrate that our bounds can detect quantum phase transitions and are often tighter than previously known computable bounds for realistic situations.