How to Estimate ROM Pricing for Your IT Projects: A Practical Guide

When you’re in the early stages of planning an IT project — before you have all the technical details nailed down — you still need to answer a critical question: 

How Much is My IT Going to Cost?

Great question! Enter the Rough Order of Magnitude (ROM) estimate. 

ROM budgeting gives business leaders a ballpark number early in the planning process, so you can make smarter, faster decisions about whether — and how — to proceed. 

In this guide, we’ll break down what ROM pricing is, why it matters, and how you can estimate it practically for your IT initiatives. 

What Is ROM Pricing? 

A Rough Order of Magnitude (ROM) estimate is an early-stage cost projection designed to provide a high-level guess of what a project might cost. 

ROM estimates are typically: 

• Created before full project scoping and technical design 
• Based on experience, historical data, and reasonable assumptions 
• Expressed with a wide accuracy range (typically ±25% to ±50%) 

Think of ROM as your "first-pass" budget — enough information to: 

• Justify (or reject) further planning 
• Compare options 
• Set expectations with stakeholders 
• Begin preliminary budgeting conversations 

It’s not final. It’s not detailed. 

But it’s essential for good decision-making. 

Why ROM Estimates Are Crucial for IT Projects 

Technology projects are infamous for budget surprises, and a lot of it stems from skipping early-stage financial planning. 

A ROM estimate helps you: 

• Avoid "sticker shock" later 
• Secure executive buy-in earlier 
• Prioritize projects based on available resources 
• Allocate rough budget reserves ahead of detailed design 
• Quickly eliminate ideas that are financially impractical 

In short, ROM pricing brings financial reality into your innovation process. 

How to Create a Practical ROM Estimate 

Here’s a simple 5-step process to develop a realistic ROM for your IT project: 

1) Define the High-Level Scope

Start by outlining what you want to achieve, even if the "how" isn't fully designed yet. 

Examples: 

• "Migrate all on-prem servers to Microsoft Azure." 
• "Implement a new CRM for 50 users." 
• "Upgrade cybersecurity defenses to meet insurance requirements." 

Clear goals — even without detailed specs — help anchor the cost estimate. 

2) Identify Major Cost Components

Break the project into broad categories: 

• Hardware purchases 
• Software licenses 
• Cloud services 
• Implementation labor 
• Project management 
• Training and adoption support 
• Ongoing maintenance costs 

You don’t need final vendor quotes yet — just recognize the major building blocks. 

3) Apply Benchmark Costs

Use available resources like: 

• Historical data from similar past projects 
• Vendor pricing calculators (many cloud providers offer these) 
• Industry benchmarks 
• Input from IT partners or consultants

Estimate each component with a range, not a single number (e.g., $50,000–$75,000 for cloud migration labor). 

4) Factor in Contingency

Because ROM estimates are inherently uncertain, add a contingency buffer — usually 25%–50% depending on complexity and unknowns. 

This protects your budget and acknowledges that early-stage assumptions often shift during detailed design. 

5) Communicate the Estimate and Its Limitations

When you present the ROM estimate: 

• Be clear it's a rough, planning-level number 
• Explain the assumptions behind it 
• Share the estimated accuracy range 
• Emphasize that final pricing will come after detailed scoping 

Setting the right expectations now avoids confusion (and disappointment) later. 

ROM Example: Cloud Migration Project 

Total ROM Range: $107,900–$153,400 

This gives leadership enough information to decide whether to greenlight detailed planning — without waiting months for a final project plan. 

Pro Tip: ROM Isn't One-and-Done 

As your project moves forward: 

• Replace ROM estimates with more accurate scoping estimates 
• Update cost projections at each stage gate 
• Narrow the range as details become clearer 

A great IT roadmap process (hint: you should have one!) incorporates regular budget revalidation. 

Rough Order of Magnitude Pricing isn’t About Perfection

 It’s about giving yourself — and your stakeholders — a clearer, faster path to informed decision-making. 

Whether you're evaluating a cloud migration, a cybersecurity overhaul, or a new business application, taking the time to create a ROM estimate can save you time, money, and credibility down the road. 

At Sourcepass, we help businesses scope, estimate, and execute IT projects with predictability and confidence — from first conversation to final delivery.