What Does Guesstimate Mean?

It’s easy to get lost when you’re first entering the job market and hearing all sorts of unfamiliar jargon and terms. One of the terms you may come across is “guesstimate,” which can be confusing. Guesstimate is a combination of the words “guess” and “estimate” that refers to an educated guess or approximate calculation.

In the professional world, the term guesstimate is typically used to refer to rough numbers that are based on rough estimates. Generally speaking, most guesstimates are based on educated guesses that are formed from previous experiences and expert opinions. For example, when setting a budget, you may guesstimate the total cost of a project based on the number of hours it will take to complete the tasks.

Guesstimations can also be a handy tool in the decision making process. In any situation, where there is uncertainty, a guesstimate can provide a quick and usually fairly accurate estimate of the expected outcome. This can be used to evaluate any potential consequences of a decision.

It’s important to remember that guesstimations should generally not be taken too seriously, as they are not definitive numbers and leading decisions solely based on them may not be wise. They can, however, provide a good starting point for decision making transitions like budgeting and planning.