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Technical Debt11 min read

The Real Cost of Technical Debt: A CFO's Guide

Technical debt isn't a developer complaint — it's a capital allocation problem. Here's how to quantify it.

By Richard Ewing·

Why CFOs Should Care

The average mid-market company loses $2.4M/year to technical debt. It's a capital allocation problem that belongs on your dashboard next to CAC, LTV, and burn rate.

The Dollar Translation

Innovation Tax: 10 engineers × 40 hrs × 60% maintenance × $125/hr = $30K/week = $1.56M/year in maintenance costs.

Cost of Delay: Average feature impact: $50K/month. Average delay: 3 months. Cost: $150K per feature.

Attrition Cost: Engineers leave high-debt environments 2.3x faster. Each departure: $200-400K total cost.

The Board Slide

"Our engineering debt exposure is $4.2M, accruing interest at 18% annually. Current remediation reduces exposure by $1.8M over 6 months with 340% ROI."


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Published Work

This article expands on ideas from my published work in CIO.com, Built In, Mind the Product, and HackerNoon. View published articles →

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Richard Ewing

The Product Economist — Quantifying engineering economics for technology leaders, PE firms, and boards.