What is analogous costing?

Analogous costing is a method of estimating the cost of a project or its part based on data from similar, previously completed projects or tasks.

It is used when there are no precise data for detailed calculation, but there is experience and information about similar projects. This approach allows for a quick approximate estimate using historical data.

For example, if you know that developing a similar software module in the past cost 100,000 rubles and took 2 months, you can use this information to estimate the budget and timelines for a new, similar module.