Strategy Management

How to Measure Technical Debt: Key Metrics, Tools & Best Practices

Technical debt is often called the “hidden cost” of software development, but the truth is, it’s not invisible if you know where to look. The longer it goes unaddressed, the more expensive it becomes to resolve.
Failure to manage it properly results in rising maintenance costs, reduced developer efficiency, and lost business opportunities. As debt accumulates, companies must either allocate more resources to maintenance or risk delays in feature delivery, both of which increase operational costs.
You can’t fix what you can’t measure. Measuring technical debt is less about blame and more about visibility. Using the correct metrics, tools, and developer feedback, turn vague frustrations into concrete insights.

TL;DR

  • Measuring technical debt: making the “hidden cost” visible.
  • Metrics to track: Technical Debt Ratio (TDR), code churn, cycle time, defect density, code duplication, maintainability index, and failed CI/CD builds.
  • Tools: Static code analysis (SonarQube, CodeClimate), automated testing, application portfolio rationalization (TIME analysis).
  • Feedback loops: developer input, peer code reviews, continuous monitoring.
  • Best practice: combine quantitative metrics + business impact to prioritize what to fix first.

How to Start Measuring Technical Debt

  • Metrics: technical debt ratio (TDR), code churn, cycle time, defect density, CI/CD failures.
  • Management strategies: automated testing, code reviews, refactoring, CI/CD pipelines, backlogs, and documentation.
  • Best practices: acknowledge debt, set quality standards, refactor incrementally, and replace legacy systems when necessary.

Learning how to measure technical debt is the first step in effective management. Measuring this debt requires you to assess different aspects of the development process and codebase to identify areas for improvement.

If you can’t measure it, you can’t change it.

Peter Drucker

For actionable insights, consider the following best practices:

  • Combine organizational impact and code-level metrics for a more comprehensive overview
  • Monitor metrics over a period to recognize trends
  • Use automated and advanced tools for consistent results
  • Contextualize metrics depending on project particulars

To get an accurate picture, you can use metrics such as:

  • Technical debt ratio (TDR)
    Addressing any problems in the software incurs extra costs. The technical debt ratio compares the software repair costs against the overall development cost. A lower ratio indicates higher quality code since the probability of technical debt is low.
    TDR=(Cost to Fix Technical Debt/Total Development Cost)×100%

    Cost to Fix Technical Debt: Cost required to fix all known issues, often measured in person-days or person-hours.
    Total Development Cost: Total effort spent on developing the code, including designing, coding, testing, and deploying the software

  • Code Churn
    Code churn measures the percentage of code that changes over a given time period. It’s calculated as:
    Code Churn = (Lines Added + Lines Deleted) / Total Lines of Code × 100%

    High code churn can indicate instability, unclear requirements, or poor initial design. However, some churn is normal during active development and refactoring. Monitor trends over time rather than focusing on absolute values. If the churn is still high after bug fixes and launch, every other iteration will likely bring additional errors and issues.

  • Cycle Time
    Cycle time refers to the time it takes developers from the first commit to code deployment. Shorter cycle time indicates lower technical debt, as it means the code or process is highly optimized.
    Cycle time measures development velocity, not code quality. Shorter cycle times don’t automatically mean lower technical debt. Fast deployment means cutting corners, while longer cycle times indicate thorough quality processes. Track cycle time trends alongside quality metrics for meaningful insights.
    Other metrics that may apply include:
    • Time to market
    • Change failure rate
    • Technical debt index
    • Defect ratio or density
    • Number of failed CI/CD builds
    • Lead time
    • Code coverage

The metrics you choose depend on your organizational goals and project needs. Regularly tracking and evaluating these metrics allows proactive technical debt management.

In addition to metrics, you can evaluate technical debt through methods like:

Technical Debt Quadrant
Mapping out technical debt based on whether it’s long- or short-term, inadvertent or deliberate, can help you prioritize what to address first.
Automated Tools
Automated tools periodically scan the codebase to identify any issues arising from technical debt. Such tools generate easy-to-interpret visualizations and detailed reports on problem areas.
Developer Feedback
It’s crucial to regularly engage your developers and seek feedback on areas where technical debt is affecting team productivity. This information and qualitative data will give you a better understanding of the quantitative metrics.
Code Reviews
Frequent code reviews help to identify areas that contribute to technical debt. Ensure you work with team leads and senior developers who can offer recommendations and insights that drive improvement.
With the knowledge from these methods and metrics, it will be easier to create an effective action plan with targeted corrective actions to manage technical debt.

What is the KPI for Technical Debt?

A KPI (Key Performance Indicator) for technical debt is simply a metric you decide to track consistently as a measure of code health or risk. Unlike raw metrics, KPIs connect the numbers to your business goals.
For example, some teams make Technical Debt Ratio (TDR) their KPI, keeping it below 5% to maintain healthy code quality. Others may choose test coverage percentage, code duplication %, or mean time to resolve (MTTR) as their KPI.
The key is to pick KPIs that reflect your priorities: stability, scalability, security, or speed of delivery. In other words, any metric can be a KPI if it represents the health outcome your business values most.

Track what matters, cut what doesn’t

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How Do You Track Technical Debt? 5 Simple Steps

1. Keep a Debt List: Make a simple list of technical debt items, just like you do for bugs or new features. Review it every few weeks to see what’s getting worse and what you can tackle next.
2. Mark Problem Areas in Your Code: When you spot messy code, leave a comment like “// FIXME: This needs cleanup” or “// TODO: Refactor this mess.” It’s like leaving breadcrumbs for your future self (or teammates) to find problem spots.
3. Use Code Scanning Tools: Tools like SonarQube automatically check your code and point out issues like duplicate code or overly complicated functions. Think of them as spell-check for code quality.
4. Talk About Debt During Code Reviews: When reviewing each other’s code, don’t just look for bugs, also point out areas that might cause problems later. Make it a normal part of your team discussions.
5. Put Debt Metrics on Your Dashboard: Track basic numbers like how often code changes, test coverage, and build failures. Display these somewhere your team can see them regularly, so debt doesn’t sneak up on you.

Conclusion

Measuring technical debt isn’t just a developer exercise; it’s a leadership habit. Metrics like TDR, code churn, and defect density give you the numbers. Tools like SonarQube, TIME analysis, and CI/CD scans give you visibility. But the real insight comes from combining those numbers with developer feedback and business impact.

When you measure debt, you can explain it in terms the business cares about: costs avoided, risks reduced, and productivity unlocked. That’s how you shift the conversation from “we’re drowning in bugs” to “here’s why fixing this now saves us millions later.

Measure debt, make it visible, and manage it deliberately. That’s how you earn the right to innovate without the hidden drag of yesterday’s shortcuts.

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FAQs

Q1. What metrics measure technical debt?

The big ones are technical debt ratio (TDR), code churn, cycle time, defect density, code duplication, and maintainability index. Each gives a different lens on system health.

Q2. How do you keep track of technical debt?

Document it in a backlog, tag it directly in code with annotations, use automated scanning tools, and make it a regular part of sprint planning.

Q3. Why is measuring technical debt important?

Because what you don’t measure, you can’t manage. Tracking debt shows leaders where investment is needed, helps balance feature delivery vs. maintenance, and prevents surprises like outages or slowdowns.

Q4. What KPIs matter most in technical debt management?

That depends on your priorities, but common KPIs include technical debt ratio (TDR), code duplication %, test coverage, mean time to resolve (MTTR), and defect density.

Q5. How do I explain technical debt metrics to executives?

Tie it to business outcomes. Instead of “code complexity is high,” frame it as “our risk of downtime and support cost is increasing.” Use ROI language to justify debt reduction investments.

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