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Abdul Qadir Luqman
Abdul Qadir Luqman

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How do you calculate cost of software

What criteria do you use to calculate the cost of building software for a client? (As a freelancer)

Discussion (5)

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elmuerte profile image
Michiel Hendriks

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.

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luqman10 profile image
Abdul Qadir Luqman Author

Wow this is a more detailed way of calculating the cost. Will check out the book you recommended too. Thanks man

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Olga Galik

It comes down to the people-hour and the technology stack involved in building the software. you can check overview here: uptech.team/blog/software-developm...

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Marta Zagrajek

Working hours?

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luqman10 profile image
Abdul Qadir Luqman Author

Yeah. That's one way to look at it.