Agile software development has been gaining popularity and replacing the traditional methods of developing software. However, estimating the size and effort in Agile software development still remains a challenge. Measurement practices in agile methods are more important than traditional methods, because lack of appropriate an effective measurement practices will increase the risk of project. This paper discuss about traditional and agile effort estimation model, and analysis done on how the metrics are used in estimation process. The paper also suggeststo use object point and use case point to improve accuracy of effort in agile software development.