Software Developer Estimate Template
A software developer estimate forecasts the price before work starts: 8 lines for two-week sprint building a CSV import service and a reporting API for a logistics company's internal shipment system, totalling $8,845.00, with labour the largest share (94%). It states its assumptions and stays valid for 30 days. Edit the lines and download the PDF.
Pre-filled for a software developer: two-week sprint building a csv import service and a reporting api for a logistics company's internal shipment system. Example prices: replace them with your own.
From
Fox Hollow Software Development
331 Market Street
Salem, MA 01970
billing@example.com
(512) 555-0131
Estimate
Prepared for
Avery Lindqvist
9 Willow Court
Franklin, TN 37064
client@example.com
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Sprint planning and backlog refinement | 4 hr | $120.00 | $480.00 |
| CSV import serviceParser, validation rules, per-row error report | 26 hr | $120.00 | $3,120.00 |
| Reporting API endpointsShipment volume, delay and cost summaries | 22 hr | $120.00 | $2,640.00 |
| Unit and integration testsMalformed files, duplicate rows, time zones | 10 hr | $120.00 | $1,200.00 |
| Code review and pairing with in-house team | 4 hr | $120.00 | $480.00 |
| Cloud compute for load testingBilled at cost from the provider invoice | 1 month | $85.00 | $85.00 |
| Deployment and handover notesRelease to the client's cloud, runbook for the ops team | 1 project | $480.00 | $480.00 |
| Out-of-hours production incidentSaturday call-out at 1.5x rate | 2 hr | $180.00 | $360.00 |
- Subtotal
- $8,845.00
- Estimate total
- $8,845.00
Notes
A software development estimate should break the work into features with low and high hour ranges, list what the client must provide (access, test data, decisions) and state that it is not a fixed price.
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Software Developer estimate at a glance
| Scope estimated | Two-week sprint building a CSV import service and a reporting API for a logistics company's internal shipment system |
|---|---|
| Estimate total | $8,845.00 before tax |
| Valid for | 30 days from the estimate date |
| Deposit | On ongoing engagements a monthly retainer is usually invoiced in advance, while sprint hours beyond it are billed in arrears. |
| Labour (6 lines) | $8,280.00, 94% |
| Services (1 line) | $480.00, 5% |
| Fees (1 line) | $85.00, 1% |
| Priced in | hr |
Estimate breakdown for two-week sprint building a CSV import service and a reporting API for a logistics company's internal shipment system
| Item | Type | Est. quantity | Est. amount |
|---|---|---|---|
| Sprint planning and backlog refinement | Labour | 4 hr | $480.00 |
| CSV import service | Labour | 26 hr | $3,120.00 |
| Reporting API endpoints | Labour | 22 hr | $2,640.00 |
| Unit and integration tests | Labour | 10 hr | $1,200.00 |
| Code review and pairing with in-house team | Labour | 4 hr | $480.00 |
| Cloud compute for load testing | Fees | 1 month | $85.00 |
| Deployment and handover notes | Services | 1 project | $480.00 |
| Out-of-hours production incident | Labour | 2 hr | $360.00 |
| Estimated total | $8,845.00 |
What to write on a software developer estimate
A software development estimate should break the work into features with low and high hour ranges, list what the client must provide (access, test data, decisions) and state that it is not a fixed price.
This estimate has no material lines: 94% of it is labour, so the hours are the number to explain.
Independent software developers mostly bill time and materials by the hour or day, with monthly retainers for maintenance and occasional fixed bids for well-specified modules.
Assumptions behind each line
Write these next to the 8 lines so the customer sees what the $8,845.00 depends on.
- Sprint planning and backlog refinement: 4 hr at $120.00 per hr ($480.00); extra hr at the same rate.
- CSV import service: 26 hr at $120.00 per hr ($3,120.00); extra hr at the same rate.
- Reporting API endpoints: 22 hr at $120.00 per hr ($2,640.00); extra hr at the same rate.
- Unit and integration tests: 10 hr at $120.00 per hr ($1,200.00); extra hr at the same rate.
- Code review and pairing with in-house team: 4 hr at $120.00 per hr ($480.00); extra hr at the same rate.
- Cloud compute for load testing: a flat $85.00.
- Deployment and handover notes: 1 project, $480.00.
- Out-of-hours production incident: 2 hr at $180.00 per hr ($360.00); extra hr at the same rate.
Changes, overruns and change orders
If the customer adds work, put it on a signed change order first. Here one more hr of "Sprint planning and backlog refinement" adds $120.00, or 1.4% of the estimate.
Tips from software development work billing
- Larger companies often pay only against a purchase order, so put the PO number and the sprint or milestone it covers in the header or accounts payable will send the invoice back.
- Bill out-of-hours incident work at its premium rate on a separate line with the date and incident reference, so routine sprint hours are not questioned when the premium appears.
- Attach a time-tracking export grouped by feature rather than by day; a reviewer approves 26 hours on an import service far more readily than 26 unlabelled hours.
- If the contract assigns intellectual property on payment, name that clause on the invoice, because the person approving payment is rarely the person who signed the contract.
Checking the labour rate
U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2024: median hourly wage of Software Developers $63.98 (employees, not contractor rates).
The sample's $120.00 per hour for "Sprint planning and backlog refinement" is 1.9 times that employee figure; a business rate also has to cover insurance, tools, travel, unbilled admin time and profit.
Turning the software developer estimate into an invoice
-
Get it approved
Ask Avery Lindqvist to sign or reply in writing to estimate EST-5476.
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Record the changes
Update quantities to what was actually used across the 8 lines.
-
Switch the document type
Change Estimate to Invoice in the tool; the lines and parties stay.
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Deduct what was paid
Enter any deposit as amount paid so the balance due is correct.
Frequently asked questions
How do I write a software developer estimate?
Describe the job (Two-week sprint building a CSV import service and a reporting API for a logistics company's internal shipment system), list each line with an estimated quantity and rate, total it ($8,845.00 in the sample), state how long it is valid and what it assumes, then send it as a PDF for approval.
Is a software developer estimate binding?
An estimate is a forecast, not a fixed price, so the final invoice can differ when the work or materials change. Rules vary by country and state; to stay safe, get written approval before billing noticeably more than the $8,845.00 you estimated.
How long should a software developer estimate be valid?
Thirty days is common and is what this template uses. With little material cost, a longer validity is usually safe.