Operations

Project Cost Estimator

Estimates total project cost by combining labor, materials, and overhead into a single budget. Includes a configurable contingency reserve and variance tracking against actuals as the project progresses.

Operations - Project Cost Estimator.xlsx

Excel (.xlsx) — No macros — Works in Excel, Google Sheets, LibreOffice

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What This Spreadsheet Solves

Projects exceeding budget because initial estimates omitted indirect costs
No standard methodology for estimating project costs consistently
Contingency reserves set arbitrarily rather than based on risk assessment
Inability to compare estimated vs. actual costs during execution
Stakeholders lacking confidence in cost projections

Who This Is For

Project managers preparing budgets for approval
Operations directors standardizing estimation processes
Finance teams reviewing project cost proposals
Program managers overseeing multi-project portfolios

Inputs

#Labor hours by role
$Hourly labor rate by role
$Materials and equipment cost
%Overhead rate
%Contingency percentage
#Project duration in weeks

Outputs

Total labor cost
Total materials cost
Overhead allocation
Contingency reserve amount
Total project budget
Cost per week

How Calculations Work

Labor cost is computed by multiplying hours by rate for each role. Materials are summed directly. Overhead is applied as a percentage of direct costs (labor plus materials). Contingency is calculated as a percentage of the total before contingency. The sum produces the total project budget. A phased breakdown distributes costs across the project timeline.

Example Use Case

Scenario: A software project requires 2 developers (400 hrs each at $85/hr), 1 designer (120 hrs at $75/hr), $3,000 in tools, 15% overhead, and 10% contingency over 16 weeks.

Result: Labor: $77,000. Materials: $3,000. Overhead: $12,000. Subtotal: $92,000. Contingency: $9,200. Total budget: $101,200. Cost per week: $6,325.

What You Get — 5 Sheets

READMEEstimation methodology, definitions of cost categories, and instructions for entering role-based labor estimates.

INPUTRole-based labor hours and rates, materials list, overhead rate, contingency percentage, and project timeline.

LOGICMultiplies hours by rates, applies overhead and contingency, phases costs across the project duration.

OUTPUTTotal budget summary, cost breakdown pie chart, weekly cost distribution, and estimate vs. actual variance tracker.

CONFIGDefault overhead rates, contingency guidelines by project type, and role rate card templates.

Technical Details

File Format:.xlsx (Open XML)

Macros:None — pure formulas

Compatibility:Excel 2016+, Google Sheets, LibreOffice

Input Cells:Clearly marked with blue background

Formulas:All outputs are live Excel formulas

Protection:LOGIC sheet formulas protected, INPUT cells editable

Frequently Asked Questions

How do I set the contingency percentage?

5-10% for well-defined projects with experienced teams. 15-25% for projects with unclear scope or new technology. Base it on historical variance data if available.

Should I include internal staff at full salary cost?

Use a fully loaded rate (salary plus benefits plus overhead) for the most accurate estimate. The CONFIG sheet has a formula for converting salary to hourly rate.

How do I handle costs I cannot estimate precisely?

Use three-point estimation: enter optimistic, likely, and pessimistic values. The LOGIC sheet computes a weighted average.

Can I track actuals against the estimate?

Yes. The OUTPUT sheet has columns for actual costs that update the variance tracker as you enter real data.

What overhead rate should I use?

Typical ranges: 25-40% for professional services, 15-25% for tech companies, 40-60% for manufacturing. Use your company's actual overhead rate if known.

Download Project Cost Estimator

Ready to use immediately. Enter your data in the INPUT sheet, see results in OUTPUT.

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