How Do You Calculate a Quote for an Outsourcing Project?

"How much would it cost to build this?"

This is the question I've been asked most over four years of freelance development. And honestly, it's still not an easy question to answer. After dozens of projects, I've developed my own standards, but every new project brings new challenges.

Why Estimating Is Hard

Development quotes are hard because even for the same feature, the effort can vary wildly depending on implementation. For example, let's say we're building a "login feature."

• Is email/password enough?
• Do we need social login (Google, Kakao, Naver)?
• Is password recovery and email verification needed?
• What level of security is required?
• Does it need to integrate with existing systems?

Even something as simple as "login" has this many variables. From the client's perspective, it's just "login," but for a developer, it could be a 2-day or 2-week job.

That's why clearly defining requirements is essential before giving a quote. This principle hasn't changed even after four years.

Early Mistakes

When I first started in 2021, I knew nothing about estimating. My first project paid less than minimum wage when calculated hourly. I rationalized it as "gaining experience," but honestly, I just didn't know better.

The second and third projects were the same. When clients asked "How much for this?" I gave rough guesses. Naturally, mid-project conversations about "Was this included in the quote?" followed.

The lesson I learned: Vague quotes make both sides unhappy.

My Current Estimating Method

After four years of trial and error, here's my settled approach.

First, I create a detailed feature list. During client meetings, I persistently ask "What exactly do you want?" It might seem tedious, but skipping this creates bigger problems later.

Once features are listed, I estimate work time for each. Then I multiply total hours by my daily rate and always add 30-50% buffer. Taking longer than expected is the nature of development. A tight estimate without buffer means 100% regret.

Finally, I clearly write what's included and what's not in the quote. Conditions like "up to X revision rounds" and "this feature costs extra." This prevents disputes later.

The Power of Transparent Quotes

As I gained experience, I realized transparent quotes actually build trust. Initially, I worried "Won't clients try to negotiate down if I'm this detailed?" But it was the opposite.

When the quote's basis is clear, clients understand "Oh, that's why it costs this much." If you just say "Total is X" without detail, you get "Why? Isn't that expensive?"

Of course, some clients see detailed quotes and say "Remove this feature please." But that's a good sign. It's the process of clarifying what the client really needs.

Why I Built an Estimate Calculator

Getting so many estimate questions, I decided to build a tool. It's a calculator that shows approximate development cost and timeline when you select main features.

Of course, this is just for reference. Actual quotes vary based on specific requirements. But it helps get a sense of "roughly how much this scale of project would cost."

If you're curious, try the Dante Company estimate calculator.

Experience Is the Answer

After dozens of projects over four years, I've developed my own standards. An intuition of "this scale roughly costs this much." It's hard to explain in writing—you can only learn by doing.

One thing is certain though: don't charge too little. When you charge low, clients treat you at that value, and you lose motivation, leading to lower quality. Proper pricing leads to mutually satisfying results.

I hope this helps others with similar concerns.