Accurate sprint estimates are crucial to any software development project’s success. But should you use story points or hours in your sprint planning? If you don’t know the answer, you’re not alone.

Many prefer story points, but both methods can produce accurate estimates. One may be more effective for specific use cases — or you can combine the two!

Let’s explore the differences between story points and hours, and how to decide which one to use.

Story points in a nutshell

Story points are a relative estimation technique. Agile teams assign story points based on the work required, complexity, and risk. Different methods (e.g., planning poker, t-shirt sizing) help teams assign points.

Many teams use the Fibonacci sequence, which allows room for approximation when estimating.

Agile user story estimation techniques: planning poker, T-shirt size, dot voting, bucket system, and affinity mapping.

The pros and cons of using story points in sprint planning

Story points offer flexibility. Estimates are team-based, not tied to one developer, making it easier to assign tasks. They also help monitor team velocity and plan sprints based on collective capabilities.

However, story points may be less accurate for new features or unfamiliar projects. They can also be less useful for estimating costs or accounting for non-development tasks.

Using hours for estimation

Hours estimate how long a task will take to complete. This method works well when the scope is clear, and it’s familiar to most stakeholders. It also makes it easier to manage budgets.

But hour estimates depend on individual developers and may change with staffing shifts. Estimating large projects in hours can be more challenging, and adjusting timelines mid-project is harder.

Story points vs. hours – is one better than the other?

There’s no one-size-fits-all answer. But here are some guidelines.

Go with story points if:

Estimating what features you can launch by which date is more important than sticking to a budget.
You have a long project with many product backlog items.
You need to account for many dependencies and monitor velocity throughout the project.

Choose hours if:

Staying within a budget is more important than hitting a specific launch date.
You have a short-term project and identified specific resources for the tasks.
You want to shorten the sprint planning process.

Comparison between story points and hours: story points for longer projects, hours for budgeting, and fixed-price models.

Why not combine the two and get the best of both worlds?

With 7pace Timetracker for Azure DevOps, you don’t have to choose. Our proprietary metric called Pace connects story points with hours, giving teams valuable insights along the way.

To calculate pace, divide tracked time by estimated story points of a work item. Each team has its own pace, which tends to gravitate toward a consistent number over time as you analyze more data from different projects.

Pace formula in Agile: tracked time divided by estimation of effort or story points.

When you have a good grasp of your team’s pace, you can use the number to estimate how long it takes to complete a task with a certain number of story points.

Time required formula in Agile: pace multiplied by estimated story points for better project planning.

You can also use real-time data collected during a sprint to verify that your team’s pace is consistent with the number you used in the estimation.

If the metric's off, you can raise a red flag early and adjust your project plan. You can also use the insights during retrospectives to help improve your scrum team’s velocity and inform how you plan the next sprint.

Increase the accuracy of your data with 7pace Timetracker for Azure DevOps

Whether you use story points or hours, accurate historical data is key. 7pace Timetracker helps collect granular data and improve reporting in Azure DevOps. Developers can log time in multiple ways, and managers can approve timesheets and track team data in one place.

You can also create custom widgets to track story points and other metrics not natively available in Azure DevOps.

Try 7pace Timetracker free for 28 days and see the difference for yourself!

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Story points vs. hours in sprint planning: Which one’s best?

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