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Project Cost Estimate Calculator

Work out project cost estimate instantly with clear inputs, formula shown and shareable results.

About Project Cost Estimate Calculator

A project cost estimate is effort at a blended rate plus non-labour costs, with contingency applied to the whole. Reporting the labour share is a useful sanity check: software projects are typically 70-85% labour, and a much lower share suggests significant procurement risk.

Formulas

Base cost

Base = Effort hours x Blended rate + Non-labour costs

Total cost

Total = Base x (1 + Contingency %)

Worked example

With the default values below, Project Cost Estimate Calculator returns Total project cost of $14,214,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Total effort
4,800 hours
Blended hourly rate
2,200
Non-labour costs (licences, hardware, travel)
1,800,000
Contingency
15

Results

Total project cost
$14,214,000.00
Labour cost
$10,560,000.00
Contingency
$1,854,000.00
Labour share of base cost
85.44%

Step by step

  1. 1Values used
  2. 2Base cost
  3. 3Total cost
  4. 4Total project cost= 14,214,000.00
  5. 5Labour cost= 10,560,000.00
  6. 6Contingency= 1,854,000.00
  7. 7Labour share of base cost= 85.44

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Should contingency apply to non-labour costs?

Yes for anything not yet under contract. Firm-priced procurement can be excluded from the contingency base.

What contingency is appropriate?

10-15% for well-defined work with a known team, 25-40% for novel technology or unclear requirements.

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