Story Points and Velocity: Estimate Relatively, Forecast by Velocity
Points are relative to the team, so do not compare its velocity to others.
- Small points — A simple, clear story
- Medium points — A larger or less certain story
- Large points — A complex story that may need splitting
Agile estimation sizes work relatively, not in hours. A story point is a relative unit expressing effort, complexity, and uncertainty together, comparing stories to one another. Velocity is the sum of story points completed in a single iteration, used to forecast what can be done later. Relative estimation is faster and more stable than absolute hour estimates. Do not compare one team velocity to another, since its units are relative to it.
Comparing velocity across different teams. Points are relative to each team, so compare only with the same team.
Estimate in relative points, forecast by velocity, and do not compare teams.
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Agile estimation gives up false hour precision for a relative estimate that is faster and more stable. A story point is an abstract unit comparing one story size to another, considering effort, complexity, and uncertainty together, not time alone. The team estimates its points with collaborative techniques that reduce individual bias. As several iterations accumulate, velocity emerges as a rate of what the team completes per iteration, becoming a realistic tool to forecast when a given scope will finish. Points and velocity are internal team measures for tuning and improving its planning, not for comparing it to other teams or for accountability, since the point reference differs from team to team.
Frequently asked questions
What is a story point?
A relative unit expressing effort, complexity, and uncertainty, comparing stories not hours.
What is velocity?
The sum of story points completed in a single iteration, used to forecast.
Why relative estimation instead of hours?
Because it is faster, more stable, and less prone to false precision.
Do I compare two teams velocity?
No; points are relative to each team, so compare velocity only within the same team.
How do I forecast when scope finishes?
By dividing remaining total points by the team velocity.