Software Development Project Timeline: Explained

Tuhin Bhatt

Co-founder of Intelivita

  Published on November 16, 2023

  9 min read

Accurate software development time estimation is highly crucial to your project’s success.


Because underestimating time can lead to rushed work, compromised quality, and missed deadlines.

Meanwhile, overestimating it can inflate costs and delay product launches.

The cost of software development for large IT projects tends to exceed their budget by nearly half and their scheduled timelines by 7 percent, often delivering 56 percent less value than initially projected.

This blog will provide a clear guide to estimating software development time accurately and adaptively to ensure your project remains on track and within budget.

Let’s uncover this!

What is Software Development Time Estimation?

Software development time estimation is the process of predicting how long it will take to complete a software project, considering:

  • the project’s scope
  • the software’s size and complexity
  • the development team’s capabilities
  • the resources available.

Thus, it’s a systematic approach to every aspect of your software development journey.

This estimation helps plan, set realistic deadlines, and allocate resources effectively.

The goal is to allocate your resources effectively while setting realistic expectations from clients and stakeholders.

Why Time Estimation in Software Development Matters

Software development time estimation is vital for several reasons, such as:

The Foundation for Project Planning

Project managers from your in-house or outsourced software development services provider can create a realistic schedule by:

  • estimating how long tasks will take
  • ensuring that each project phase meets client expectations and deadlines

Resource Allocation

Estimating software development time helps determine how many developers are needed and for how long.

Underestimating time can lead to overworked staff and increased costs due to overtime or hiring additional personnel in the middle of the project.

Overestimating, on the other hand, can result in idle resources and increased project costs.

Risk Management

A good project estimation involves anticipating and incorporating potential delays, helping teams manage risks better.

Therefore, your team can have extra time to handle unforeseen challenges without disrupting the entire project.

Software Quality

Time estimation affects the overall quality of the software.

Rushed projects due to poor time estimation can lead to errors and lower-quality outputs.

Conversely, realistic timeframes allow developers to thoroughly test and refine the software, leading to a better end product.

6 Ways to Estimate Software Development Time

There are 6 methods for software development estimation, which you can choose based on the practicality and relevance to your project scenario.

Analogous Estimation

Analogous or comparative estimation involves comparing the current project with similar past projects to estimate the time required.

This time estimation method is beneficial when there’s limited information about the current project, making it difficult to perform a detailed analysis.

In analogous estimation, the estimator looks for past projects with similar features, such as:

  • Technology
  • Project scope
  • Complexity
  • Team size

Then, use the time taken to complete previous similar projects as a baseline to estimate the time for the current project.

While analogous estimation can be quicker than other methods, it’s less precise.

It’s best used in the early stages of project planning or when detailed information is unavailable.

Bottom-up Estimation

In bottom-up estimation, the focus is on the specifics. To estimate software development time, you divide the project into smaller, more detailed components or tasks.

Then, list the project’s requirements and individually assess how long each of them will take time, considering factors like:

  • Complexity
  • The expertise of the team members
  • The resources available

Bottom-up estimation is suitable for complex projects where different tasks may vary significantly in effort and time required.

Using this method allows project managers to identify potential problem areas early in the process.

Function Point Analysis (FPA)

FPA is a structured approach that quantifies software functions in ‘function points’ derived from the software’s various elements, such as:

  • Inputs
  • Outputs
  • User interactions
  • Data files

Then, you assess each element’s complexity and assign a weight accordingly.

The total function points determine the project’s size, which you can use to estimate software development time.

FPA is effective for projects with well-defined requirements, as it relies on clearly understanding what the software should do.

Parametric Estimation

In parametric estimation, your team will rely on statistical modeling to estimate project time.

The key here is the relationship between the time taken for past projects and the parameters, such as the number of lines of code or user interfaces.

Parametric estimation is particularly effective when a wealth of historical data is available, as the data provides the foundation for the model.

Three-point Estimation

Three-point estimation considers the uncertainty and risk to estimate software development time.

It involves making three different time estimates for each task:

  • the best-case scenario (Optimistic)
  • the worst-case scenario (Pessimistic)
  • the most likely scenario

These three help calculate an average estimate that considers potential variances in the project timeline.

The benefit of three-point estimation lies in its realism. It acknowledges that projects rarely go exactly as planned.

Hence, project managers can develop a more balanced and realistic view of the project timeline by preparing for the best and worst-case scenarios.

Top-down Estimation

Top-down estimation begins with a macro view of the project in estimating total duration based on the overall scope and major deliverables.

Then, you break down into smaller, more manageable segments or phases.

In top-down estimation, you rely on the expertise and experience of senior project managers or team leaders who have worked on similar past projects.

They will make informed guesses about the new project’s timeline.

Compared to other estimation techniques, top-down estimation values insights from experience over the raw data.

While this approach can be less resource-intensive, top-down estimation also risks overlooking specific tasks that might not be apparent at the higher level.

Therefore, many development teams combine this method with other approaches to balance its broad perspective with detailed analysis.

5 Critical Steps for Better Time Estimation

Moving from the various estimation techniques, we now focus on critical steps that enhance the accuracy of software development time estimation.

Understand the Project’s Scope and Complexity

Thoroughly understanding the project’s scope involves identifying the requirements, objectives, and deliverables.

This step helps identify technical challenges, resource requirements, and potential risks associated with the project.

Eventually, you can have a more realistic estimation of the time required for each task on the project.

Next, consider the project complexity which can arise from various factors, such as:

  • Technology stack
  • Integration with other systems
  • Project originality
  • The level of customization required

Projects with higher complexity generally need more time due to the increased need for research, problem-solving, and testing.

Break Down the Task List

This process, often called Work Breakdown Structure (WBS), divides the project into smaller sections, each with its own tasks and subtasks.

The breakdown helps estimate each task’s time more accurately and spot potential bottlenecks in advance.

Breaking down the tasks can also assist your team in identifying dependencies between tasks, which is crucial for scheduling and resource allocation.

Therefore, project managers can assign tasks to the right team members based on their skills and availability.

Set Realistic Goals and Timelines

Setting achievable goals and realistic timelines is crucial for the success of any software development project.

Consider potential delays and setbacks while planning.

Some factors to think about include:

  • Team availability
  • Stakeholders’ expectations
  • Possible technical issues
  • Client feedback cycles

Realistic software development time estimation should be based on historical data from similar projects, if available, and should include buffer time for unpredictable challenges.

Regular review and timeline adjustments may be necessary as the project progresses, so your team can adapt to changes without compromising the project’s timeline.

Build a Solid Team

The success of a software development project heavily relies on the team working on it.

That’s why building a competent team with the right mix of skills is essential, including:

  • Technical skills
  • Project management
  • Communication
  • Problem-solving abilities

Each team member should clearly understand their role and responsibilities in the project.

Then, ensure the team can access the necessary tools and resources to perform their tasks efficiently.

You also need to encourage open communication, collaboration, and a supportive work environment to significantly enhance team performance.

Regular team meetings and updates align everyone with the project goals and the initial software development time estimation.

Consider Non-Development Activities

In software development, it’s not just the coding that counts.

Non-development activities play a significant role in estimating software development time as well.

From start to finish, non-development activities include:

  • Requirement gathering, identifying the project’s needs and goals.
  • Design, creating the architecture and user interface.
  • Testing, rigorously tested for bugs and usability issues, and the required revisions.
  • Launching the software, which can be straightforward or complex, based on the deployment environment.
  • Documentation, creating user manuals and technical guides.

Often, these activities can take up a substantial amount of time and resources, and failing to account for them can lead to inaccurate time estimations.

Monitor the Progress Through the Development

Monitoring the project’s progress is vital to estimate software development time and stay on track accurately.

This step involves:

  • Regular check-ins with the team
  • Reviewing completed tasks against the project timeline
  • Adjusting the schedule as needed

Effective monitoring includes using project management tools that provide real-time insights into the project’s status, such as Jira and ProofHub.

These tools can help identify bottlenecks, track individual contributions, and assess team performance.

Regular team meetings are crucial for discussing progress, addressing challenges, and adjusting the initial software development time estimation.

Monitoring also involves keeping stakeholders informed about the project’s progress. Regular updates help manage expectations and provide opportunities for feedback.


Throughout this article, we’ve informed you of various methods and strategies, from using historical data to embracing modern estimation techniques.

Understanding the nuances of each approach empowers teams to make informed decisions, set realistic goals, and efficiently allocate resources.

Accurate software development time estimation doesn’t only concern deadlines but also enhances the quality, value, and success of your software projects.

Got a project on the horizon? Let’s make sure your time estimate and success are spot on. Intelivita is here to help you transform your software ideas into reality.

With our expertise in software development, we turn complex projects into user-friendly solutions.

Don’t let estimation uncertainties hold you back.

Contact us, and let’s discuss how we can make your project successful with precise time and resource management!


Tuhin Bhatt is a co-founder of Intelivita, a leading Web and Mobile App Development Company. He helps passionate entrepreneurs build amazing tech products. Tuhin being a peoples man who has a passion to share his technical expertise with clients and other enthusiasts.

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