What is the purpose of using story points in Agile estimation?

Using story points in Agile estimation serves the primary purpose of helping teams plan their work based on relative complexity. Story points allow teams to assess the level of effort, risk, or complexity involved in completing a user story, rather than focusing solely on time or cost. This relative assessment enables teams to compare different tasks or user stories within the same context, facilitating better planning during the sprint or iteration.

By assigning story points, teams can create a baseline for understanding how complex various tasks are compared to each other, which ultimately aids in estimating how much work can realistically be accomplished in a given sprint. This methodology supports Agile's flexibility, allowing adjustments based on the team's velocity and helping them to efficiently navigate through their workload.

In Agile, the focus is not on precise durations or monetary valuations; instead, it prioritizes collaboration and adaptability. This approach allows teams to deliver value incrementally, and by estimating complexity instead of time, they can maintain a more accurate and dynamic understanding of their capabilities and workload.