fermi-estimation

Installation
SKILL.md

Fermi Estimation

Core principle: Almost any quantity can be estimated to within an order of magnitude by decomposing it into estimable factors and multiplying. Goal is the right number of zeros, not precision. A 10× error is informative; a 1000× error changes the decision.


The Core Process

Step 1: Define the Target Quantity Precisely

Specify what, over what period, for what scope, in what units.

"How many tokens does this use?""Total token count of one Constellation pipeline run, medium-complexity feature, across all agent turns?"

Step 2: Decompose into Estimable Factors

Target = Factor_1 × Factor_2 × Factor_3 × ...

Each factor independently estimable; units cancel correctly; no factor is the original unknown in disguise.

Patterns: Rate × Time · Count × Average · Population × Fraction · Flow × Duration

Step 3: Estimate Each Factor

Explicit reasoning per factor. Round numbers — order of magnitude, not false precision.

Step 4: Compute and Sanity-Check

Multiply through. Does it pass common sense? Match reference points? Which factor, if wrong, most changes the result?

Step 5: Bound the Estimate

Low (each factor at low) / Central (best guess) / High (each at high). High/low within ~3× each side = well-bounded. Orders of magnitude apart = one factor too uncertain (validate it).


Output Format

Target Quantity

  • Estimating: [Precisely defined quantity]
  • Units: [What we're counting in]

Decomposition

Factor Estimate Reasoning
[Factor 1] [Value] [Why]
[Factor 2] [Value] [Why]
Product = [Result]

Range

Scenario Estimate Key driver
Low [Value] [Factor at low]
Central [Value] Best guess
High [Value] [Factor at high]

Key Driver

  • Which factor contributes most?
  • If you could validate one, which?
  • A 2× error in [key factor] produces a 2× error in result — worth checking.

Sanity Checks

  • Reference point: [comparable known value]
  • Common sense pass? [If no, which factor is suspect?]
  • Order-of-magnitude conclusion: [zeros that matter]

Reference Points

Time

  • Person-hour engineering: ~1–4 hrs focused
  • Working hours/week: ~40 (effective ~25–30)
  • Working days/month: ~22

Compute / LLM

  • Token density: ~750 words / 1,000 tokens
  • GPT-4-class input: ~$2–10 / M tokens
  • LLM response time: 1–10s
  • Code file: 50–500 lines; ~100–2,000 tokens

Scale

  • Small SaaS: 1k–10k MAU
  • Mid-size: 100k–1M MAU
  • Large platform: 10M+ MAU

Money

  • Fully-loaded engineer (EU/US): €80k–€200k/yr
  • Per-hour: €40–€100
  • AWS small instance: ~$10–50/month

Anti-Patterns

  • False precision: Reporting "42,381 tokens" for an order-of-magnitude estimate. Use round numbers.
  • Single-path decomposition: Cross-check with an independent decomposition.
  • Forgetting units: If they don't cancel, the decomposition is wrong.
  • Treating estimate as answer: Starting point and sanity check, not a substitute for measurement when measurement is warranted.
  • Refusing to estimate: "I don't have enough data" is rarely right when a decision needs to be made. Decompose what you can; flag what you can't.

Thinking Triggers

  • "What does this equal as a product of things I can estimate?"
  • "What's the right number of zeros?"
  • "Which single factor, if wrong by 10×, changes my conclusion?"
  • "What reference point can I sanity-check against?"
  • "If off by 2×, does the decision change? By 10×?"

Example: Token Budget for an Agent Pipeline

Question: How many tokens does one Constellation run consume?

Factor Estimate Reasoning
Agent turns 8 6 agents + orchestrator + review
Avg input tokens/turn 4,000 System ~1k + context ~2k + task ~1k
Avg output tokens/turn 1,000 Structured response
Total per run = 8 × 5,000 = 40,000

Range: 20k (simple, short context) to 120k (complex, full history).

Key driver: Input context size dominates. Compressing context is highest-leverage.

Sanity check: 40k @ $5/M = $0.20/run. 100 runs/day = $20/day = ~$600/month. Plausible for a dev tool.

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