Primarily employed in the construction or manufacturing industries, cost estimators help business owners and managers put together competitive bids for contracts, projects and products by forecasting the costs, scope and timeline involved. They also support profitability goals by analyzing projects for potential profit. Enrolling in the online Master of Business Administration (MBA) in Finance program from Florida Institute of Technology can help you begin a cost estimator career and quickly advance to higher-level positions.
Cost Estimator Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), the employment of cost estimators will decline somewhat from 2023 to 2033. However, BLS still projects roughly 18,000 job openings each year for qualified professionals.
Projected cost estimator job openings will stem from turnover in the field. This turnover is due largely to workers changing occupations or leaving the labor force, creating replacement jobs for new cost estimators.
What Does a Cost Estimator Do?
To determine a project’s cost, scope and duration, a cost estimator typically collects and analyzes available data on applicable factors. For instance, a cost estimator in the construction industry would analyze costs associated with materials, machinery requirements, labor and location. They may visit a construction site to study access, availability of utilities, topography, drainage and other relevant cost elements. Typically, cost estimator responsibilities include the following:
- determine the materials and labor needed for a project, based on size and design specifications
- prepare complete bids, including equipment, labor, materials, taxes, insurance, subcontractors and markup
- determine possible weather, material delays and other unknown factors that could affect costs
- manage and control a project’s costs
- track actual costs as the project proceeds
- use specialized software to run complex mathematical calculations and prepare reports
- advise management on appropriate actions in the construction or manufacturing process in accordance with organizational goals
Where Else Do Cost Estimators Work?
In addition to the construction industry, many cost estimators work in manufacturing and production of various types, often in the engineering or pricing department. They analyze the costs associated with developing, redesigning and producing products. Working with blueprints or conceptual drawings of new projects, the cost estimator first considers the machining operations, tools and materials required, prepares a parts list, and determines the most efficient method of producing the product.
Cost estimators gather pricing from parts manufacturers and decide whether purchasing or manufacturing parts is more profitable. Finally, they calculate the time needed for design, fabrication, manufacturing parts and correcting possible problems.
In some firms, cost estimators specialize in certain areas of manufacturing or construction, such as electrical, excavation, or heating and air conditioning. They may take a lead role in questioning changes in pricing and negotiating claims.
Cost estimators usually work in office environments, and 40 hours per week is typical. Cost estimators may sometimes need to work overtime, especially when bids are due. Some industries require travel to visit job sites, manufacturing facilities and subcontractor locations.
What Is a Typical Cost Estimator Salary?
According to BLS, the median annual salary for cost estimators was $74,740 in May 2023. Cost estimators in the heavy and civil engineering construction industries had the highest median earnings at $91,170. BLS reports that salaries for the top-earning 10% of cost estimators exceeded $124,520 in 2023.
With substantial experience and education, cost estimators may receive promotions to senior positions. According to ZipRecruiter data, senior cost estimators made an average annual salary of $129,703 as of March 2025. Top earners made between $179,500 and $186,500 per year.
Further, cost estimator job duties provide the experience professionals need to advance into higher-level finance roles. With substantial time on the job and additional education, cost estimators may pursue lucrative careers at the top of their industry, such as VP of corporate finance or chief financial officer (CFO).
How Do You Become a Cost Estimator?
Required education and training for cost estimator positions vary according to the industry. BLS reports that cost estimator jobs typically require a bachelor’s degree. According to O*NET OnLine, a government career website sponsored by the U.S. Department of Labor, 82% of cost estimators report a bachelor’s degree is the minimum level of education for new hires.
Employers often prefer manufacturing cost estimators with a degree in finance or business. An advanced degree such as an MBA in finance can give cost estimators a distinct edge in the job market, a crucial qualification for promotion opportunities, and the skills and knowledge needed to pursue and excel in leadership roles.
Is Pursuing a Career as a Cost Estimator the Right Path for You?
Do you have strong mathematical, analytical and problem-solving skills and excellent written and verbal communication skills? Do you enjoy finding the best way to approach a project or solve a puzzle? If so, you may be a good candidate for a cost estimator career.
Earning an MBA in finance can help you further develop these attributes and skills, providing you with sound decision-making abilities, general business acumen, financial expertise and leadership competencies. Florida Tech’s online MBA in Finance program prepares you to pursue career opportunities in a variety of fields, including breaking into manufacturing or construction as a cost estimator.
Learn more about Florida Tech’s online MBA in Finance program.
