[uml] What's is the difference between include and extend in use case diagram?

I like to think of "includes" as a necessary prerequisite/accompaniment of the base use case. This means that the base use case cannot be considered complete without the use case it includes. I'll give the example of an e-commerce website that sells items to customers. There's no way you can pay for an item without first selecting that item and putting it in the cart. This implies that the use case "Pay for Item" includes "select item".

There are varying uses of extends but I like to think of it as an alternative that may or may not be used. For example - still on the e-commerce site. When paying for an item, you may choose to pay on delivery, pay using paypal or pay by card. These are all alternatives to the "pay for item" use case. I may choose any of these options depending on my preference.

For more clarity and the rules surrounding use cases, read my article here:

http://businessanalystlearnings.com/ba-techniques/2013/2/20/use-case-diagram-the-basics