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Analogous Estimating

A method that estimates an activity's or a project's time or cost by drawing on data from comparable past work.

Key Points

  • Top-down approach used when limited detail is available.
  • Relies on historical results from similar projects and expert judgment.
  • Requires adjustments for differences in size, complexity, scope, or location.
  • Faster but typically less accurate than bottom-up or parametric estimating.

Example

A team delivered a data center upgrade last year in 8 months for USD 900,000. A new upgrade has a similar scope but slightly higher capacity. Using analogous estimating, the project manager uses last year's figures and applies a 10 percent uplift, forecasting about 8.8 months and USD 990,000 as a high-level estimate.

PMP Example Question

During project initiation, the sponsor requests a quick, high-level cost figure before detailed planning begins. Which estimating technique should the project manager use?

  1. Bottom-up estimating
  2. Analogous estimating
  3. Three-point estimating
  4. Parametric estimating

Correct Answer: B - Analogous estimating

Explanation: Analogous estimating provides a rapid, top-down estimate using data from similar past projects, making it suitable early in the project when detail is limited.

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