Estimate development cost from effort, rates, overhead and contingency.
Fully loaded cost per developer month is typically 50 to 60 per cent above salary once overhead and contingency are included. Contingency is not padding but recognition that estimates are systematically optimistic. Comparing the fully loaded figure against a contractor rate is the only fair basis for build-versus-buy decisions.
Software Development Cost
Cost = developer months × rate, plus overhead, tooling and contingency
Cost = developer months × rate, plus overhead, tooling and contingency Fully loaded cost per developer month is typically 50 to 60 per cent above salary once overhead and contingency are included. Contingency is not padding but recognition that estimates are systematically optimistic.
Comparing the fully loaded figure against a contractor rate is the only fair basis for build-versus-buy decisions.
This calculator takes 6 inputs: Developers, Duration, Monthly cost per developer, Management and infrastructure overhead, Contingency, Tooling and licence cost. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.