What is a ballpark estimate?
A ballpark estimate (also known as a “rough estimate” or “ROM estimate”) is a fast, high-level approximation of project cost and duration shared at the early stage of discussions. It usually has an accuracy range of ±25-50% and helps decide whether it makes sense to proceed with detailed scoping and estimation.
When to use a ballpark estimate?
- Initial inquiries - when a client first reaches out with an idea
- Budget validation - to check if the project fits within expected budget
- Early conversations - before a discovery workshop or full requirements phase
- Quick decisions - when clients need an early number to move forward
Key characteristics
- Speed: can be prepared in minutes or hours, not days
- Accuracy: typically ±25-50%
- Detail level: based only on high-level requirements
- Purpose: to guide decisions, not act as a formal proposal
Example
“Based on what you described a mobile app with authentication, payments, and chat, this project would likely cost $40,000-$60,000 and take 3-4 months to deliver.
To refine the estimate, we’d need to discuss requirements in a discovery session.”
Common mistakes
- Treating it as a final quote - always clarify that it’s a rough estimate
- Being overly precise - use ranges instead of single numbers
- Skipping assumptions - note what you’re basing the estimate on
- Ignoring disclaimers - explain that accuracy is limited
What happens after a ballpark estimate?
Once a ballpark estimate is shared, typical next steps include:
- scheduling a discovery session to define detailed scope
- preparing a detailed estimate or proposal
- outlining the scope of work with assumptions
- setting up a change request process for later adjustments
Ballpark estimate vs. detailed estimate
| Aspect | Ballpark estimate | Detailed estimate |
|---|---|---|
| Purpose | Early validation | Planning and commitment |
| Accuracy | ±25-50% | ±10-15% |
| Effort | Minutes to a few hours | Days or weeks |
| Based on | High-level idea | Detailed requirements |
| Use case | First conversations | Before contract or proposal |
Related concepts
- Rough order of magnitude (ROM) - another name for early-stage estimation
- Fixed price - a detailed, binding type of estimate
- Time and materials - pricing model based on actual work time
- Discovery phase - step after a ballpark estimate for precise scoping
FAQ
What is a ballpark estimate in software development?
It’s a quick, high-level estimate that gives a client an idea of project cost and duration before detailed scoping begins.
How accurate is a ballpark estimate?
Usually within ±25-50%. Its goal is to guide conversations, not provide a fixed quote.
When should you give a ballpark estimate?
At the very beginning of client discussions, when information is limited but a direction is needed.
What should follow after a ballpark estimate?
A discovery phase or detailed estimation session to confirm scope, assumptions, and pricing.