What criteria do you use to calculate the cost of building software for a client? (As a freelancer)
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Top comments (4)
Estimated hours to complete * acceptable hour fee + estimation of support
So basically, it's mostly making up numbers you feel comfortable with.
I can recommend reading "Software Estimation" by Steve McConnell. Basically the trick behind estimated hours is to compare the work to be done to things you did before.
"Acceptable hour fee" is roughly the money you need per week multiplied with the risk of not having work the next week plus some extra, divided by 40 hours (which you spend on work per week).
Pro tip: when negotiating a contract, stick to estimated hours and hour fee, and give explicitly mentioned discount on hour fee. Never reduce the number of hours you estimated.
Wow this is a more detailed way of calculating the cost. Will check out the book you recommended too. Thanks man
Working hours?
Yeah. That's one way to look at it.