Use the mean of your historical or guesstimated velocity as your denominator

Divide your story points by your velocity to get the number of sprints you expect will be needed

Multiply the number of sprints by 40 hours per week per team member to get your labor cost

Add capital costs, equipment costs, maintenance costs, training costs, or other items that might be charged against the project.

Plan for something to go wrong

Report the final total as a range with formal or informal confidence intervals.

Summary

Use Specific Labor Categories

=> Annual loaded cost of each team member / number of theoretical iterations in a year = fixed burn rate per iteration for that team member

=> Sum (every team member’s specific fixed burn rate per iteration) = fixed iteration burn rate

Think and Add capital costs for project

Using the definition of “done” add pre- and post- project budgets

Is maintenance phase?

Think about risk factor to the overall estimate

an estimate is simply an approximate calculation of the effort and cost it might take to complete a project.

Why not COCOMO II & SLIM

require fairly detailed requirements and design specifications

require you to analyze your detailed specifications to count certain functional and technical aspects to plug into their complex estimation algorithms.

5 Project Budget & Cost Estimation Techniques

Top-down estimation

decide the total, then divide that total into the tasks or phases

Analogous estimation

use data from similar projects to decide a similar total

Parametric estimation

using data and variables to calculate the total

Three point estimation

get three different estimates and take an average to calculate the total

Bottom-up estimation

estimate all the individual parts and add them together to get the total