Software cost estimation is the process of forecasting the costs associated with efforts in software development. Many software developers and their users have voiced concern regarding their inability to predict costs related to software development with precision. According to surveys, two-thirds of all significant projects substantially exceed their original projections, and approximately one-third of projects blow their budgets and are delivered late. For project managers, system analysts, developers, and other stakeholders, it is essential to accurately predict software development costs to make sound management decisions and estimate the amount of time and effort needed for a project. Today's software projects have limited resources, including time, money, and programmers. The overall method of producing a cost estimate for the software is identical to estimating any other cost factor. However, there are some characteristics of the process that are unique to software estimation. The nature of software as a product drives some of the distinctive elements of software estimating.