Dev Cost Estimator
Calculate the true cost of your software project based on team size, hourly rates, and sprint velocity. Compare optimistic, likely, and pessimistic delivery scenarios in real time.
Cost per Story Point
$700
based on team velocity
Cost per Sprint
$30,000
10-day sprint
Single Story Cost
$5,600
8-point story
Project Scenarios
Based on 100 total backlog points at 30 pts/sprint velocity.
| Scenario | Velocity | Sprints | Timeline | Total Cost |
|---|---|---|---|---|
| Optimistic | 36 pts | 3 | 6 wks | $90,000 |
| Likely | 30 pts | 4 | 1.9 mo | $120,000 |
| Pessimistic | 24 pts | 5 | 2.3 mo | $150,000 |
Cost Comparison
Team Configuration
Productive coding time vs. meetings, reviews & admin.
Project Estimation
Typical team velocity based on past sprints. Scenarios use ±20% variation.
How to Estimate Software Development Costs
Accurate cost estimation starts with understanding the relationship between team capacity, velocity, and story points. The formula used here is: Cost per story point = (Team size × Hourly rate × Hours/day × Sprint days × Focus factor) ÷ Velocity. The focus factor (typically 60–80%) accounts for the reality that developers don't spend 100% of their time writing code — meetings, code reviews, and context-switching all reduce effective output. Multiplying cost per story point by your backlog size gives a reliable project cost estimate, while the three scenarios (optimistic at 120% velocity, likely at baseline, pessimistic at 80% velocity) provide a realistic cost range for planning and stakeholder communication.
What is the focus factor and how should I set it?
The focus factor represents the percentage of each working day spent on actual feature development versus overhead like meetings, code reviews, deployment tasks, and admin work. Most teams fall between 60% and 80%. A new team or one in an organisational change period might be as low as 50%. A senior, remote-first team with strong async culture might achieve 85–90%. Start with 70% and adjust based on your team's retrospective data.
Why do costs vary between the three scenarios?
Team velocity is rarely constant. Illness, holidays, onboarding, technical debt, and scope changes all affect how many story points a team delivers each sprint. The optimistic scenario assumes a 20% velocity boost (e.g. from a well-groomed backlog or experienced team), and the pessimistic scenario assumes a 20% velocity drop (e.g. from unforeseen complexity or team disruption). The gap between these scenarios is your cost risk buffer — useful for communicating project uncertainty to stakeholders.
How do I find my team's actual velocity?
Velocity is the average number of story points completed per sprint over the last 3–6 sprints. If your team is new and has no historical data, use a conservative estimate like 20–30 points per two-week sprint for a team of 4–6 developers. Check our Velocity Calculator to compute your average from past sprint data. Accurate story point sizing from structured planning poker sessions is the single biggest lever for improving forecast accuracy.
Accurate Cost Estimates Start with Accurate Story Points
Every number in this estimator is only as good as your story point estimates. Planning poker is the most reliable technique for calibrating your team's sizing — eliminating anchoring bias, surfacing hidden complexity, and reaching consensus quickly. Try it free, no account required.