Department of Labor Logo United States Department of Labor
Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Summary

Please enable javascript to play this video.

Video transcript available at https://www.youtube.com/watch?v=H0AMfxRWb3U.
Quick Facts: Cost Estimators
2023 Median Pay $74,740 per year
$35.94 per hour
Typical Entry-Level Education Bachelor's degree
Work Experience in a Related Occupation None
On-the-job Training Moderate-term on-the-job training
Number of Jobs, 2023 227,900
Job Outlook, 2023-33 -4% (Decline)
Employment Change, 2023-33 -8,300

What Cost Estimators Do

Cost estimators collect and analyze data in order to assess the time, money, materials, and labor required to make a product or provide a service.

Work Environment

Cost estimators work mostly in office settings, and some estimators also visit construction sites and factory assembly lines. Most cost estimators work full time, and some work more than 40 hours per week.

How to Become a Cost Estimator

Cost estimators typically need a bachelor’s degree to enter the occupation, although workers with several years of experience in construction sometimes qualify in that industry without a degree.

Pay

The median annual wage for cost estimators was $74,740 in May 2023.

Job Outlook

Employment of cost estimators is projected to decline 4 percent from 2023 to 2033.

Despite declining employment, about 18,000 openings for cost estimators are projected each year, on average, over the decade. All of those openings are expected to result from the need to replace workers who transfer to other occupations or exit the labor force, such as to retire.

State & Area Data

Explore resources for employment and wages by state and area for cost estimators.

Similar Occupations

Compare the job duties, education, job growth, and pay of cost estimators with similar occupations.

More Information, Including Links to O*NET

Learn more about cost estimators by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.

What Cost Estimators Do About this section

Cost estimators
Cost estimators often collaborate with engineers.

Cost estimators collect and analyze data in order to assess the time, money, materials, and labor required to manufacture a product, construct a building, or provide a service. They generally specialize in a particular product or industry.

Duties

Cost estimators typically do the following:

  • Identify factors affecting costs, such as production time, materials, and labor
  • Read blueprints and technical documents in order to prepare estimates
  • Collaborate with engineers, architects, clients, and contractors
  • Calculate, analyze, and adjust estimates
  • Recommend ways to cut costs
  • Work with sales teams to prepare estimates and bids for clients
  • Maintain records of estimated and actual costs

Accurately estimating the costs of construction and manufacturing projects is vital to the survival of businesses. Cost estimators provide managers with the information they need in order to submit competitive contract bids or to price products appropriately.

Estimators analyze production processes to determine how much time, money, and labor a project needs. Their estimates account for many things, including allowances for wasted material, bad weather, shipping delays, and other variables that can increase costs and lower profits.

In building construction, cost estimators use software to simulate the construction process and evaluate the price of design choices. They often check databases and their own records to compare the costs of similar projects.

The following are examples of types of cost estimators:

Construction cost estimators prepare estimates for building, road, and other construction projects. They may calculate the total cost of constructing a bridge or commercial shopping center, or they may calculate the cost of just one part, such as the foundation. They identify costs of elements such as raw materials and labor, and they may set a timeline for how long they expect the project to take. Although many work directly for construction firms, some work for contractors and engineering firms.

Manufacturing cost estimators calculate the expense of developing, producing, or redesigning a company’s goods or services. For example, an estimator working for a home appliance manufacturer may determine a new dishwasher’s production costs, aiding managers in making decisions about its assembly.

Other workers, such as operations research analysts and construction managers, also may estimate costs in the course of their usual duties.

Work Environment About this section

Cost estimators
Cost estimators may visit construction sites to gather information.

Cost estimators held about 227,900 jobs in 2023. The largest employers of cost estimators were as follows:

Specialty trade contractors 34%
Construction of buildings 15
Manufacturing 12
Automotive repair and maintenance 9
Heavy and civil engineering construction 5

Cost estimators work mostly in office settings, and some estimators visit construction sites and factory assembly lines during the course of their work.

Work Schedules

Most cost estimators work full time, and some work more than 40 hours per week.

How to Become a Cost Estimator About this section

Cost estimators
Cost estimators learn to use specialized cost estimating software.

Cost estimators typically need a bachelor’s degree to enter the occupation, although workers with several years of experience in construction sometimes qualify in that industry without a degree.

Education

Employers generally prefer to hire candidates who have a bachelor’s degree.

Construction cost estimators typically need a bachelor's degree in a related field, such as construction or engineering. Manufacturing cost estimators typically need a degree in business or finance.

Training

Most cost estimators receive on-the-job training, which may include instruction in cost estimation techniques and software and in building information modeling (BIM), computer-aided design (CAD), or other industry-specific software.

Work Experience in a Related Occupation

Some employers prefer that construction cost estimators, particularly those without a bachelor’s degree, have work experience in the construction industry. Some construction cost estimators become qualified solely through extensive work experience.

Important Qualities

Analytical skills. Cost estimators must review and evaluate different construction and manufacturing methods to find cost-effective options.

Detail oriented. Cost estimators must be precise, because minor changes may greatly affect the overall expense of a project or product.

Math skills. Cost estimators need excellent math skills to calculate labor, material, and equipment estimates for construction projects.

Time-management skills. Cost estimators must plan in advance and work efficiently to meet their deadlines.

Writing skills. Cost estimators must have excellent writing skills to prepare comprehensive reports, which often help managers make production decisions.

Pay About this section

Cost Estimators

Median annual wages, May 2023

Business operations specialists

$78,500

Cost estimators

$74,740

Total, all occupations

$48,060

 

The median annual wage for cost estimators was $74,740 in May 2023. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $44,820, and the highest 10 percent earned more than $124,520.

In May 2023, the median annual wages for cost estimators in the top industries in which they worked were as follows:

Heavy and civil engineering construction $91,170
Construction of buildings 77,910
Specialty trade contractors 76,340
Manufacturing 69,720
Automotive repair and maintenance 63,230

Most cost estimators work full time, and some work more than 40 hours per week.

Job Outlook About this section

Cost Estimators

Percent change in employment, projected 2023-33

Business operations specialists

7%

Total, all occupations

4%

Cost estimators

-4%

 

Employment of cost estimators is projected to decline 4 percent from 2023 to 2033.

Despite declining employment, about 18,000 openings for cost estimators are projected each year, on average, over the decade. All of those openings are expected to result from the need to replace workers who transfer to other occupations or exit the labor force, such as to retire.

Employment

Cost estimation software is improving the productivity of these workers, requiring fewer estimators to do the same amount of work. This will limit employment growth of cost estimators.

However, there will continue to be some demand for these workers because companies need accurate cost projections to ensure that their products and services are profitable.

Employment projections data for cost estimators, 2023-33
Occupational Title SOC Code Employment, 2023 Projected Employment, 2033 Change, 2023-33 Employment by Industry
Percent Numeric

SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program

Cost estimators

13-1051 227,900 219,600 -4 -8,300 Get data

State & Area Data About this section

Occupational Employment and Wage Statistics (OEWS)

The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OEWS data maps for employment and wages by state and area.

Projections Central

Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.org. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved.

CareerOneStop

CareerOneStop includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.

Similar Occupations About this section

This table shows a list of occupations with job duties that are similar to those of cost estimators.

Occupation Job Duties ENTRY-LEVEL EDUCATION Help on Entry-Level Education 2023 MEDIAN PAY Help on Median Pay
Accountants and auditors Accountants and Auditors

Accountants and auditors prepare and examine financial records.

Bachelor's degree $79,880
Budget analysts Budget Analysts

Budget analysts help public and private organizations plan their finances.

Bachelor's degree $84,940
Claims adjusters, appraisers, examiners, and investigators Claims Adjusters, Appraisers, Examiners, and Investigators

Claims adjusters, appraisers, examiners, and investigators evaluate insurance claims.

See How to Become One $75,020
Construction managers Construction Managers

Construction managers plan, coordinate, budget, and supervise construction projects from start to finish.

Bachelor's degree $104,900
Financial analysts Financial Analysts

Financial analysts guide businesses and individuals in decisions about expending money to attain profit.

Bachelor's degree $99,890
Financial managers Financial Managers

Financial managers create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.

Bachelor's degree $156,100
Industrial production managers Industrial Production Managers

Industrial production managers oversee the operations of manufacturing and related plants.

Bachelor's degree $116,970
Logisticians Logisticians

Logisticians analyze and coordinate an organization’s supply chain.

Bachelor's degree $79,400
Operations research analysts Operations Research Analysts

Operations research analysts use mathematics and logic to help solve complex issues.

Bachelor's degree $83,640
project management specialists Project Management Specialists

Project management specialists coordinate the budget, schedule, staffing, and other details of a project.

Bachelor's degree $98,580
Suggested citation:

Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Cost Estimators,
at https://www.bls.gov/ooh/business-and-financial/cost-estimators.htm (visited October 02, 2024).

Last Modified Date: Thursday, August 29, 2024

What They Do

The What They Do tab describes the typical duties and responsibilities of workers in the occupation, including what tools and equipment they use and how closely they are supervised. This tab also covers different types of occupational specialties.

Work Environment

The Work Environment tab includes the number of jobs held in the occupation and describes the workplace, the level of physical activity expected, and typical hours worked. It may also discuss the major industries that employed the occupation. This tab may also describe opportunities for part-time work, the amount and type of travel required, any safety equipment that is used, and the risk of injury that workers may face.

How to Become One

The How to Become One tab describes how to prepare for a job in the occupation. This tab can include information on education, training, work experience, licensing and certification, and important qualities that are required or helpful for entering or working in the occupation.

Pay

The Pay tab describes typical earnings and how workers in the occupation are compensated—annual salaries, hourly wages, commissions, tips, or bonuses. Within every occupation, earnings vary by experience, responsibility, performance, tenure, and geographic area. For most profiles, this tab has a table with wages in the major industries employing the occupation. It does not include pay for self-employed workers, agriculture workers, or workers in private households because these data are not collected by the Occupational Employment and Wage Statistics (OEWS) survey, the source of BLS wage data in the OOH.

State & Area Data

The State and Area Data tab provides links to state and area occupational data from the Occupational Employment and Wage Statistics (OEWS) program, state projections data from Projections Central, and occupational information from the Department of Labor's CareerOneStop.

Job Outlook

The Job Outlook tab describes the factors that affect employment growth or decline in the occupation, and in some instances, describes the relationship between the number of job seekers and the number of job openings.

Similar Occupations

The Similar Occupations tab describes occupations that share similar duties, skills, interests, education, or training with the occupation covered in the profile.

Contacts for More Information

The More Information tab provides the Internet addresses of associations, government agencies, unions, and other organizations that can provide additional information on the occupation. This tab also includes links to relevant occupational information from the Occupational Information Network (O*NET).

2023 Median Pay

The wage at which half of the workers in the occupation earned more than that amount and half earned less. Median wage data are from the BLS Occupational Employment and Wage Statistics survey. In May 2023, the median annual wage for all workers was $48,060.

On-the-job Training

Additional training needed (postemployment) to attain competency in the skills needed in this occupation.

Entry-level Education

Typical level of education that most workers need to enter this occupation.

Work experience in a related occupation

Work experience that is commonly considered necessary by employers, or is a commonly accepted substitute for more formal types of training or education.

Number of Jobs, 2023

The employment, or size, of this occupation in 2023, which is the base year of the 2023-33 employment projections.

Job Outlook, 2023-33

The projected percent change in employment from 2023 to 2033. The average growth rate for all occupations is 4 percent.

Employment Change, 2023-33

The projected numeric change in employment from 2023 to 2033.

Entry-level Education

Typical level of education that most workers need to enter this occupation.

On-the-job Training

Additional training needed (postemployment) to attain competency in the skills needed in this occupation.

Employment Change, projected 2023-33

The projected numeric change in employment from 2023 to 2033.

Growth Rate (Projected)

The percent change of employment for each occupation from 2023 to 2033.

Projected Number of New Jobs

The projected numeric change in employment from 2023 to 2033.

Projected Growth Rate

The projected percent change in employment from 2023 to 2033.

2023 Median Pay

The wage at which half of the workers in the occupation earned more than that amount and half earned less. Median wage data are from the BLS Occupational Employment and Wage Statistics survey. In May 2023, the median annual wage for all workers was $48,060.