How to estimate the cost of projects?

Submitted by: Administrator
1. Create the WBS of the project.
2. Assign TeamMember for each Task
3. Prepare the schedule of the Project.
4. Calculate the Effort based on the schedule & Number of
Team members

For example:

Project Shedule is 2 Month with 2 Team Member( Considering
8 Hrs per day)

That Means Effort is 4 Manmonths

Assume that Per Hour cost is 20$
One day cost per resource is 8 * 20 = 160$
One day Cost for two resources are 165*2 = 320$

Number of Working days in one Month is 22 days.
Number of Working days in 2 Months are 2* 22 = 44 days.

Add 4 Hours of Project Management that means Number of
days for project Management is 22 Days.

Total Number of days = 44+22 = 66 days

The Total Poroject Cost = 66 *320$ = 21120$

( Note: I have Assumed cost per hour is 20$ for Project Management Also. This cost may be diferent
I have Considered this Project executed @ offOsore
Onsite Cost will be more.
If the project is executed in ofshore/Onsite model , cost
will be diferent))
Submitted by: Administrator

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