How to Calculate Technical Debt Cost
What is Technical Debt Cost?
Technical debt is the implied future cost of choosing quick solutions over better-designed approaches. Like financial debt, it accrues interest through slower development and increased bugs.
Formula
Step-by-Step Guide
- 1Tech debt cost = % of dev time on debt x team salary cost
- 2Common estimate: 20-40% of dev time in mature codebases is spent on debt interest
- 3Every week of added debt increases future payback cost by 10-15%
Worked Examples
Frequently Asked Questions
What is Tech Debt Cost?
Technical debt is the implied future cost of choosing quick solutions over better-designed approaches. Like financial debt, it accrues interest through slower development and increased bugs
How accurate is the Tech Debt Cost calculator?
The calculator uses the standard published formula for tech debt cost. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.
What units does the Tech Debt Cost calculator use?
This calculator works with inches, percentages. You can enter values in the units shown — the calculator handles all conversions internally.
What formula does the Tech Debt Cost calculator use?
The core formula is: Tech debt cost = % of dev time on debt x team salary cost. Each step in the calculation is shown so you can verify the result manually.
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