Work out project cost estimate instantly with clear inputs, formula shown and shareable results.
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.
Base cost
Base = Effort hours x Blended rate + Non-labour costs
Total cost
Total = Base x (1 + Contingency %)
Yes for anything not yet under contract. Firm-priced procurement can be excluded from the contingency base.
10-15% for well-defined work with a known team, 25-40% for novel technology or unclear requirements.