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Research Deep Dive

The True Cost of Technical Debt: What the Research Actually Says

9 min read

📊 Research Summary

20% higher revenue growth for debt-aware companies
McKinsey, 2020
42% of developer time goes to maintenance
Stripe, 2018
75% → 25% debt reduction possible with systematic approach
McKinsey, 2023
$1.52T annual U.S. cost of technical debt
CISQ, 2022
61B workdays effort required to clear recorded debt
CAST, 2025
25-36% productivity loss documented
Besker et al., 2019

Technical debt has evolved from a useful metaphor into a measurable crisis. The latest research reveals a problem so vast it defies comprehension: $1.52 trillion in annual costs across the U.S. economy,61 billion workdays of accumulated remediation globally, and development teams losing25-42% of their capacity to debt-related issues.

Yet most organizations still treat technical debt as an abstract concern rather than a quantifiable business risk. This disconnect between the magnitude of the problem and the tools we use to measure it represents one of the greatest inefficiencies in modern software development.

The Evolution of Technical Debt Research

The term “technical debt” was coined by Ward Cunningham in 1992 as a metaphor to explain the long-term costs of shortcuts in code. Three decades later, what started as a communication tool has become the subject of rigorous academic study and industry analysis.

A tertiary study by Rios et al. (2018) analyzed 13 secondary studies covering 362 primary research papers on technical debt. Their synthesis revealed that debt consumes anywhere from 15% to 60% of development effort, depending on the domain and system age. This massive range tells its own story: technical debt’s impact varies wildly, yet it is universally present.

Alves et al. (2016) conducted a systematic mapping of 100 primary studies, identifying eight distinct types of technical debt and ten management strategies. Their key finding? While strategies abound, few have been empirically validated in industrial settings. The gap between academic theory and practical application remains vast.

The Real Numbers: Industry Studies Paint a Sobering Picture

The most frequently cited research on developer time allocation comes from Stripe’s 2018 Developer Coefficient study. Surveying over 1,000 developers across five countries, they found that engineers spend17.3 hours per week on maintenance out of a typical 41.1-hour work week—that is roughly 42% of their time.

The Stripe Developer Coefficient

Survey of 1,000 developers across five countries uncovered how much time maintenance absorbs.

17.3 hrs/weekSpent on maintenance work
13.5 hrs/weekDedicated to addressing technical debt
3.8 hrs/weekLost to debugging and refactoringWithin the debt bucket
42%Share of developer capacity consumed

Source: Stripe – The Developer Coefficient (2018)

This is not a temporary problem—it is the steady state of modern software development.

McKinsey’s research brings an executive lens to the problem. Their 2020 survey of 50 enterprise CIOs revealed a set of sobering signals:

McKinsey CIO Survey

Executives quantified the budgetary drag technical debt creates across large enterprises.

20–40%Of technology estate consumed by technical debt
30% of CIOsDivert over a fifth of their budget to debt
20% higherRevenue growth for firms actively managing debt
75% → 25%Time on debt after interventions2023 follow-up case study

Source: McKinsey – Tech debt: Reclaiming tech equity (2020/2023)

McKinsey’s 2023 follow-up showed even more dramatic results. One organization reduced engineer time spent on technical debt from 75% to 25%, effectively tripling its development capacity without hiring a single developer.

The Consortium for Information & Software Quality (CISQ) produces the most comprehensive analysis of software quality costs. Their 2022 report calculated:

CISQ Cost of Poor Software Quality

Industry consortium tallied the macroeconomic impact of software defects and rework in the U.S.

$2.41TTotal cost of poor software quality
$1.52TDirectly attributable to technical debt
6% of GDPEquivalent share of the U.S. economy

Source: CISQ – Cost of Poor Software Quality (2022)

These are not hypothetical losses—they are real economic drag from slower feature delivery, increased maintenance costs, and missed market opportunities.

Academic Frameworks Meet Industrial Reality

The SQALE Method

Jean-Louis Letouzey’s Software Quality Assessment based on Lifecycle Expectations (SQALE) method, published in 2012, provides one of the most practical frameworks for measuring technical debt. The core insight is simple:

Technical Debt = Remediation Cost − Business Value of Remediation

SQALE calculates remediation cost as:
Remediation Cost = Σ(violation_count × remediation_time) × hourly_rate

The SQALE Debt Model

Lifecycle-based scoring that translates static-analysis violations into remediation effort and business impact.

Debt = Cost − ValueCore SQALE definition
Σ(violations × time)Estimates remediation workload
× Hourly rateExpresses debt in financial terms
SonarQubeOperationalized in mainstream toolingIndustry adoption

Source: Letouzey – SQALE Method (2012)

The method underpins tools like SonarQube, making it one of the few academic approaches with widespread industrial adoption.

Besker’s Productivity Studies

Research by Terese Besker and colleagues (2018-2019) provided empirical evidence of technical debt’s impact on productivity. Surveying multiple software organizations, they found:

Besker’s Productivity Findings

Empirical surveys across multiple product teams quantified how unmanaged debt erodes developer throughput.

25%Average development effort lost to debt
36%Worst-case productivity drag observed
↗ SatisfactionDebt reduction correlates with happier engineers
25% recoveredCapacity gained with structured remediation

Source: Besker et al. – The Impact of Technical Debt (2019)

Perhaps most importantly, they documented that systematic debt management can recover up to 25% of lost engineering time.

The Global Scale: CAST’s Worldwide Analysis

CAST Software maintains one of the largest databases of application analysis, covering over 2,500 applications and billions of lines of code. Their findings show:

CAST Worldwide Analysis

Source-code scans of 2,500+ enterprise applications quantify how fragile code drives hidden remediation costs.

45%Applications classified as fragile
61B workdaysEffort required to clear recorded debt
$3.61 / LOCAverage technical debt density
1M LOC = $3.61MIllustrative debt loadMedium-size product

Source: CAST Research Labs – Software Intelligence Report (2025)

For context, a modest one-million-line codebase carries $3.61 million in technical debt. Most enterprise applications are orders of magnitude larger.

Beyond the Numbers: The Hidden Costs

The Compound Effect

Technical debt does not just consume current resources—it compounds. Every shortcut taken today increases tomorrow’s maintenance burden. While specific multipliers vary by organization and codebase, research consistently shows that high-debt modules require significantly more effort to modify, have higher defect rates, and slow down new developer onboarding.

Besker et al.’s studies documented organizations losing up to 36% of development time to debt issues. CAST’s analysis of 2,500+ applications reinforces that debt-heavy code takes substantially longer to modify and maintain, though the exact multipliers depend on the specific characteristics of the debt.

The Innovation Tax

Perhaps the most insidious cost is the innovation tax. Teams mired in technical debt spend their time fighting fires instead of building features. McKinsey found that companies in the 80th percentile for technical debt management achieve not just cost savings but 20% higher revenue growth than those in the bottom 20th percentile.

This is not just about efficiency—it is about competitive advantage. While your team spends 42% of its time on maintenance, competitors with lower debt are shipping value faster.

The Measurement Challenge

Despite overwhelming evidence of technical debt’s impact, most organizations struggle to quantify it. The research highlights four core reasons:

Lack of standardized metrics

Every organization measures technical debt differently, making apples-to-apples comparisons impossible.

Translation gap

Teams struggle to convert engineering indicators into the business language executives need for decisions.

Tool fragmentation

No single platform covers the entire debt surface area, so signals stay scattered across teams.

Baseline absence

Without an initial measurement, it is impossible to prove progress or defend investment in remediation.

This measurement gap explains why, despite losing trillions annually, many organizations still treat technical debt as a secondary concern.

From Research to Reality: What Actually Works

Make it visible

Track debt metrics like any other KPI. Visibility alone nudges teams to address the backlog before it explodes.

Speak business language

Frame debt in terms of dollars, delayed features, and customer impact to unlock executive sponsorship for the work.

Allocate consistent time

Set aside recurring engineering capacity for remediation. Smaller, rhythmic investments compound faster than rare big pushes.

Prioritize high-impact areas

Use data to surface the hotspots causing the most drag so teams fix the 20% of debt creating 80% of the friction.

The Path Forward

The research consensus is clear: technical debt is one of the largest hidden costs in software development. The $1.52 trillion annual price tag represents not just maintenance costs but lost opportunities, delayed innovations, and competitive disadvantages.

Yet the same research shows that debt is manageable. Organizations that measure, prioritize, and systematically address their debt see dramatic improvements—not over years, but within months. The first step is always the same: quantify the problem. You cannot manage what you do not measure.

Start Measuring Your Technical Debt Today

We built a free calculator based on this research to help teams quantify their maintenance burden. Using the Stripe Developer Coefficient 2018 benchmarks and the SQALE methodology, it provides an instant snapshot of where your team is investing its engineering hours.

In under two minutes you can:

Quantify maintenance load

Benchmark your team’s monthly maintenance costs using the 42% industry signal from Stripe’s survey.

Compare against leaders

See how your allocation stacks up to top-performing teams and spot the gap you need to close.

Model remediation effort

Apply SQALE-derived assumptions to estimate the investment required to pay debt down intentionally.

Ready to measure your technical debt?

Get data-driven insights in under 2 minutes

Try the ScopeCone Technical Debt Calculator →

Sources and Further Reading