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Costs estimation is at the heart of software development process. It is important for every business to have the ability to have an estimate for each project they have. Estimation can be thrown randomly to advance quickly but that would not really make sense. There is a long process that leads to cost estimation. Besides costs, there is another important aspect that needs to be taken into account: how long would it take to deliver the product? When answering these questions, there are few things we need to understand: how to calculate software development cost? How does software development project estimation work? How to calculate man-hours for a software project?