How to Setup a Spreadsheet to Calculate Project Cost – Step by Step

To plan how to setup a spreadsheet to Calculate Project Cost, it is best to get some help from the experts. In this blog post, I’ll walk you through a step-by-step tutorial on how to set up a spreadsheet for calculating project costs in a variety of ways. The process of planning the project cost can be tricky, especially if you are working on a long-term project with many milestones. There are so many ways to do project costing that it can be overwhelming. In this article, I’ll show you how to calculate the project cost using excel. This method of project costing allows you to use your favorite spreadsheet software or any Google doc you might be using. And no, it doesn’t have to be just for your projects – this method can be used by clients who are asking you how much things cost too.

How to Setup a Sheet for Calculating Project Cost?

how-to-setup-a-spreadsheet-to-calculate-project-cost

Setting up a spreadsheet for calculating project costs can be tricky and time-consuming. You might be working on a long-term project with many milestones. There are so many ways to do project costing that it can be overwhelming. But here we will discuss a simple way through which you can make and set up a spreadsheet. So let’s review the following easy steps.

  • Set up a blank Excel sheet for calculating project costs.
  • Add the necessary data from the spreadsheet below and populate the required fields with data from the corresponding source.
  • Make sure you fill in the correct values, otherwise, the calculation will not work.
  • When done calculating your costs, click Calculate and then select the cell you would like to display your costs. 
  • Save the file with the file name

How to Create a Formula?

Let’s say your project is a one-month-long event that will involve 10 volunteers. You need to know your project cost so that you can estimate how much to raise through sponsorships, fundraisers, and other means. Here is the formula for calculating the project cost.

  • First, find the total time the project will take. This will include preparation, execution, and cleanup. The total project time can be found on your project plan. For example, in our case, it was 90 days.
  • Add the number of hours per day. In our case, we have a team of 10. So, 10 people will be working for 90 days or 5,040 hours. That equals about 940 hours per week.
  • Divide the total hours per day by 52 to calculate the average number of hours each person works per week. In this case, that’s 55 hours per week. We’ll use this figure as our daily average.
  • Multiply the number of hours per week by your hourly rate. In our case, the hourly rate is $15/hour, so we’ll get a gross figure of $9.30 per hour.
  • Divide the hourly figure by 1440 to find out how much the project cost per day. In our case, that’s $11.62 per day.
  • Multiply the daily figure by your total days to find out how much the project costs in one month.
  • Divide the monthly figure by 12 to find out how much the project costs in a year.
  • This is a ballpark figure. It should be treated as a guide and not a final answer. However, if your hourly rate is higher, then you will need to adjust this calculation.

How to Update the Project Cost Sheet?

Now that you know the basics, it’s time to learn how to update this sheet. To update the project cost sheet, you need to follow these steps:

  • In the Google Docs sheet, go to File > Make a Copy. You will now have two identical sheets open.
  • On one of those sheets, change the data in the cells that correspond to the numbers you want to update.
  • Paste the updated data into the second spreadsheet. This will overwrite the data on the first sheet. Now you have one spreadsheet with the data you want and one spreadsheet with the old data.
  • Switch back to the first spreadsheet. Delete any cell with data that corresponds to a cell in the second spreadsheet.
  • Save the first spreadsheet. You now have a copy of the second spreadsheet with the changes you made.

How to Summarize Project Costs?

In this step, you will find out how to summarize your project costs. To do this, follow these steps:

  • In the Google Docs sheet, go to File > Make a Copy. You will now have two identical cost sheets open.
  • On one of those sheets, change the data in the cells that correspond to the numbers you want to update.
  • Paste the updated data into the second spreadsheet. This will overwrite the data on the first sheet. Now you have one spreadsheet with the data you want and one spreadsheet with the old data.
  • Switch back to the first spreadsheet. Delete any cell with data that corresponds to a cell in the second spreadsheet.
  • Save the first spreadsheet.

You now have a copy of the second spreadsheet with the changes you made.

  • Go to File > Save As. In the Save As dialog box, choose a file name.
  • Go to File > Save. You are now done.
  • The formula you used in step 3 is:
  • =SUM(B2:B11)
  • In this formula, B2:B11 refers to the range of cells where you have your data.

In this case, it is B2:B11, which means cells B2 through B11. This is the data you want to summarize.

Wrapping It All Up:

In conclusion, making a spreadsheet to calculate the cost of your projects is a great way to get started. And while it’s pretty straightforward, you’re not going to get an accurate estimate without some research.

So, if you want a real-world view of how much things cost, I recommend checking out a spreadsheet template. You can get one for free from websites like TemplateMonster.

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