# Software Development Cost Calculator

> Cost a build including tools, overhead and a contingency reserve.

Page: https://freecalculator.tech/tools/software-development-cost-calculator
Last reviewed: 2026-09-16

## Formula

Labour = Effort × Loaded cost per person-month; Base = Labour × (1 + Overhead rate) + Tools + Infrastructure; Total = Base × (1 + Contingency rate)

- Labour = Effort × Loaded cost per person-month; Base = Labour × (1 + Overhead rate) + Tools + Infrastructure; Total = Base × (1 + Contingency rate).
- Inputs used: Currency, Estimated effort, Loaded cost of one person-month, Tools and licences (optional), Infrastructure and environments (optional), Overhead applied to labour (optional), Contingency reserve (optional).
- Edge handling: Estimated effort is required.; Estimated effort cannot be negative.; Estimated effort must be no more than 1000000000.; Loaded cost of one person-month is required.; Loaded cost of one person-month cannot be negative..

## Inputs

- Currency
- Estimated effort
- Loaded cost of one person-month
- Tools and licences (optional)
- Infrastructure and environments (optional)
- Overhead applied to labour (optional)
- Contingency reserve (optional)

## Worked example: 286 person-months with tools and a reserve

Optional components left at zero are excluded, not guessed.
1. Start with Currency: USD, Estimated effort: 286, Loaded cost of one person-month: 14000, Tools and licences (optional): 60000, Infrastructure and environments (optional): 40000, Overhead applied to labour (optional): 15.
2. Apply the method: Labour = Effort × Loaded cost per person-month; Base = Labour × (1 + Overhead rate) + Tools + Infrastructure; Total = Base × (1 + Contingency rate).
3. Optional components left at zero are excluded, not guessed.

## Common questions

### Where does this formula come from?

COCOMO II Model Definition Manual — post-architecture effort PM = A × Size^E × ΠEM with A = 2.94 and E = B + 0.01 × ΣSF (B = 0.91), and schedule TDEV = C × PM^(D + 0.2 × (E − B)) × SCED%/100 with C = 3.67 and D = 0.28. See the source link on this page.

### What kind of calculation is this?

Effort is costed at the organisation's own person-month cost, then optional components, overhead and contingency are added. Check the formula, example, and limitations on this page before using the result for a real professional & industry decision.

### What are its limits?

Gives a cost, not a price. Inherits the uncertainty of the effort estimate it is given.

### How do I use the Software Development Cost Calculator?

Enter the required values for Currency, Estimated effort, Loaded cost of one person-month, Tools and licences (optional), Infrastructure and environments (optional), and the other fields shown. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

### What formula does the Software Development Cost Calculator use?

Labour = Effort × Loaded cost per person-month; Base = Labour × (1 + Overhead rate) + Tools + Infrastructure; Total = Base × (1 + Contingency rate) The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone. Check the formula, example, and limitations on this page before using the result for a real professional & industry decision.

### Can the Software Development Cost Calculator be used for exact decisions?

Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.

## Limitations and assumptions

- Inputs outside the supported range are rejected rather than forced into a result.
- The result depends on the values you enter for this software development cost calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

## Sources

- University of Southern California, Center for Systems and Software Engineering — https://csse.usc.edu/tools/cocomo/

## Cite this page

- APA: Free Calculator. (2026, September 16). Software Development Cost Calculator. https://freecalculator.tech/tools/software-development-cost-calculator
- MLA: "Software Development Cost Calculator." Free Calculator, 16 Sept. 2026, https://freecalculator.tech/tools/software-development-cost-calculator.
- Link: Software Development Cost Calculator — Free Calculator, https://freecalculator.tech/tools/software-development-cost-calculator