Are you ready to transform your software development idea into reality? Whether it’s for your inventory management to automate your routine tasks or fleet management software to track real-time vehicles, you can’t weigh its potential; it’s beyond your expectations.
| By 2027, the software development market will likely hit $1.03 trillion. |
Knowing this, as you have decided to build software, you are thinking about how much it costs to develop software. Before you move ahead, knowing the cost of building software is essential so you don’t go out of budget later in the development phase.
The software development cost ranges between $10,000-$3,00,000 and can oscillate depending on key factors (talk about this later in this post)
This blog post will let you dig deeper into an estimated cost to build software according to the complexity, type, development team size, development stages, and more. Also, don’t miss to unveil the hidden cost of software development and hacks to reduce the expenses that can help save you money.
Let’s usher in your hunt for software development costs!
Questions to Ask Yourself Before You Know Your Software Development Cost
Before you start to learn your software development cost estimation, you should ask below questions to yourself:
- What is your industry?
- What type of company do you run? Internal or commercial use.
- What is the desired number of software users?
- What software type do you want to develop? ERP, CRM, etc.
- What capabilities should your software hold? Sales pipeline automation, etc.
- Which software version do you require? MVP or fully-featured solution
- Would you need any integrations?
- Which software type do you need? Web, mobile, or desktop
- Do you need to migrate data from legacy software?
- Are there any compliance standards for your planned software? Check all that needs to apply, such as HIPAA, for healthcare software development.
- Do you have tech stack preferences?
By getting answers to these questions, you can be clear about your software development and can move ahead to know the average cost of custom software development.
Average Cost Of Software Development
How much does it cost to develop software?
The size and complexity of the software impact the average cost of custom software development, which starts at $10,000 and goes up to $300,000.
Let’s break down the cost per the software complexity:
| Software Types (based on complexity) | Estimated Cost Range (USD) |
|---|---|
| Basic | $10,000 – $50,000 |
| Medium | $50,000 – $150,000 |
| High | $150,000 – $300,000+ |
The cost we mentioned in this table is an estimated one, as it is based on the project’s requirements. So, remember to scan the software development needs before you start your project.
Software Development Cost Calculator
When you encounter difficulties estimating software development costs, the software development cost calculator/formula below can help you quickly determine the cost.
| Cost = (Hourly Rate) * (Estimated Development Time) + (Additional Costs) |
Here:
- Hourly Rate: The per-hour development cost.
- Estimated Development Time: The total hours needed to complete the project.
- Additional Costs: Any other expenses, like third-party services, software licenses, or hardware.
Calculate Hourly Rate: Sum the hourly rates of all team members (including developers, designers, testers, etc.)
Calculate Estimated Development Time: The total time needed for every development step, such as requirement analysis, design, development, testing, deployment, and project management.
Calculate Additional Costs: Sum of software license costs, external services or API costs (if any), and hardware costs (if needed).
Let’s say:
Developer Hourly Rate = $50/hour
Estimated Development Time = 500 hours
Additional Costs = $2000
Let’s put these figures in the formula –
Cost = ($50/hour x 500 hours) + $2000 = $27000
Thus, you will get the estimated cost of custom software development. You can add more details (specific to your project) to get the exact cost.
Factors Affecting Software Development Cost
In this section, we will discuss the factors affecting custom software development costs, giving you software development cost estimation separately for every factor.
1. Type of Software
The type of software you want to build decides the development cost. We have curated a table highlighting different software types with descriptions and estimated costs. You can scan to know the development cost of the software you want to build.
| Type of Software | Description | Estimated Cost Range (USD) |
|---|---|---|
| Web Development | Creating and maintaining websites and web applications that run online on a web browser. | $10,000 – $100,000+ |
| Mobile App Development | Building apps for smartphones and tablets (iOS, Android) that use Internet connectivity to work with remote computing resources. | $20,000 – $200,000+ |
| Desktop Development (App) | Creating software applications locally for computer devices (operating systems like Windows and macOS) that run specifically on desktops and laptops. | $30,000 – $150,000+ |
| Embedded Systems Development | Programming for devices with specific functionalities (e.g., smartwatches, medical equipment) that perform specific jobs within a larger product or system. | $50,000 – $300,000+ |
| Game Development | Creating video games for varied platforms (PC, consoles, mobile). | $100,000 – $300,000+ |
| Data Science & AI Development | Developing software powered by machine learning and artificial intelligence. | $50,000 – $300,000+ |
| Cloud Development | Software designed to run on cloud platforms (e.g., AWS, Azure). Writing code in the cloud or on the local machine linked to the cloud. | $25,000 – $100,000+ |
| Blockchain Development | Creating an unchangeable, shared, and distributed ledger technology (DLT) network that records transactions and tracks assets securely. | $75,000 – $250,000+ |
| AR/VR Development | Creating software for Augmented Reality (AR) or Virtual Reality (VR) experiences. Crafting virtual experiences that fuse immersive storytelling, 3D art, and futuristic technology. | $100,000 – $300,000+ |
| Enterprise Software Development | Creating large-scale software apps to meet the requirements of the whole organization, often with extensive features and user management capabilities. | $100,000 – $300,000+ |
2. Complexity of the Software
With the increasing complexity of your software, the development costs also elevate. The table below will help you understand the estimated price range based on complexity.
| Complexity | Description | Cost Impact |
|---|---|---|
| Low Complexity | Simple software with basic/limited features and functionality. Content is often static with basic interactions. | Lower Cost |
| Medium Complexity | Software with a moderate range of features and functionalities. It may include databases, user accounts, or dynamic content. | Moderate Cost |
| High Complexity | Feature-rich software with complex functionalities, potential scalability, and integration needs. It may involve advanced data processing, real-time features, or custom development. | Higher Cost |
3. Size Of Development Team
A larger team size with more professionals can help you easily handle complex projects, but their cost would be higher.
Smaller teams may take longer to develop software, but will be cost-effective.
4. Timeframe For Development
The stages of software development decide the timeline, which impacts custom software development costs. Larger projects that take longer to complete may lead to higher costs, while smaller ones that take fewer hours will cost less.
5. Experience Level And Expertise Of Development Team
Although highly skilled and experienced developers may demand high salaries, this will result in fewer bugs, cleaner code, and comparatively faster development, diminishing overall costs.
On the other hand, less experience may cost you less, but you will need more supervision and extended software development time.
6. Geographic Location Of The Development Team
The development team is hired at different pricing from distinctive regions. We have curated a table with estimated per-hour costs of the development team from varied regions. Regions with lower living costs may be more budget-friendly for you.
| Region | Estimated Hourly Rate (USD) | Impact on Cost |
|---|---|---|
| North America (US, Canada) | $100 – $250+ | Highest Cost |
| Western Europe (UK, Germany, France) | $75 – $200 | High Cost |
| Eastern Europe (Poland, Ukraine, Romania) | $30 – $80 | Moderate Cost |
| Asia (India, China, Southeast Asia) | $20 – $60 | Lower Cost |
7. Tools And Technologies Used In Development
Pre-built libraries and ready-made development tools can be cost-effective for custom software development. Custom development leveraging specific technologies may require extra investment, but it will meet your project’s varied, tailored needs.
Also read: How To Manage A Remote Software Development Team?
Breakdown of Total Software Development Cost According To Stages/Phases
We will discuss the cost of every software development stage sequentially to emerge with total custom software development cost.
| Stage/Phase | Description | Estimated Cost % |
|---|---|---|
| Planning & Requirements Gathering | Defining project vision, features, functionalities, and user stories. | 5-10% |
| UI/UX Design | Designing user interfaces and user experience for increased usability. | 10-20% |
| Development | Creating the software’s core functionalities and features. | 40-60% |
| Testing & QA | Rigorously testing the software for performance, functionality, and bugs. | 10-20% |
| Deployment & Launch | Releasing the software to end users and app stores (if applicable). | 5-10% |
| Maintenance & Support | Ongoing updates, bug fixes, and improvements after launch. | 10-15% |
We split the estimated cost development stage-wise to help you quickly estimate software development costs and finalize your budget accordingly.
Hidden Cost Of Software Development
You learned about various types of factors affecting custom software development costs. Did you know there are varied hidden parameters you should uncover to understand the hidden cost of software development?
Let’s check them out:
1. Server & Hosting Expenses
Using servers or a cloud service is essential to store and run your software, which needs an upgrade with the increasing user base. This charges an amount that businesses usually need to remember to include in their budget.
2. Staff Maintenance & Training
Your job is endless even after your software launch, and for that, you need a staff to manage post-launch tasks, like updating features, fixing bugs, and training new joinings. The ongoing cost should be considered while you go deeper into software development cost estimation.
3. Security
When building software, you should prioritize security, which includes costs for penetration testing, security audits, and staying updated with the latest security threats.
4. Unpredictable Changes
Sometimes, new market regulations, conditions, or competitors may demand adjustments to your software, and this leads to surged software development costs.
5. Maintenance & Bug Fixes
Software always needs improvement, as it may need bug fixes and updates, which add to the expenses of building it.
6. Legacy Integration
If your software requires integration with the older systems, this can be expensive and complicated and again charges an amount.
Understanding these hidden costs can help businesses craft a more realistic budget for their software development projects.
How To Reduce The Software Development Cost?
A stitch in time saves nine. You need to make strategies in the initial stage only to let things go seamlessly and in your favor.
You can reduce the software development costs by:
1. Clearly Defining Requirement
You should invest some time accumulating user needs and functionalities. With clear requirements, you can proceed with no confusion and rework later, saving money and time.
2. Prioritize Features
Aim to develop core functionalities while building MVP and collect feedback before incorporating advanced features. This diminishes development time and helps validate the concept.
3. Agile Development
Include agile methodologies, such as Scrum, that focus on iterative development and continuous improvement.
4. The Appropriate Tech Stack
Choosing the right technologies to suit your project needs and developer proficiency can be cost-effective. Opt for open-source libraries; don’t follow the latest trends.
5. Hire a Software Development Company
Outsourcing specific tasks to a comprehensive development process can save you money, especially when you don’t have an in-house team.
6. Automate Tasks
Opt to automate repetitive jobs, such as deployment and testing, where possible. This frees your developer’s time and allows them to solve more creative problems.
7. Code Reuse and Modularity
Break your code into reusable components for rapid development and simpler maintenance. This saves time and diminishes errors.
8. Effective Project Management
Implement robust project management practices to manage resources, track progress, and address potential blockages.
9. Continuous Integration and Delivery (CI/CD)
Automate the development, testing, and deployment process to facilitate development and identify bugs faster, leading to reduced expensive fixes.
10. Cloud-Based Solutions
Cloud platforms like Amazon Web Services (AWS) provide cost-effective and scalable data storage and server infrastructure solutions. You pay for only what you use.
11. Infrastructure Optimization
Consistently monitor and optimize your server resources to keep unnecessary costs away. Choose pay-as-you-go models for cloud services.
By implementing a couple of these strategies, you can reduce software development costs without compromising innovation and quality.
Why Consider EmizenTech To Develop Your Software In Budget?
Choosing EmizenTech for software development services can help you plan, design, build, integrate, test, manage, and launch software solutions.
By aiming for quality and adhering to best software development practices, EmizenTech offers software development services for software companies, startups, and enterprises across diverse industry verticals.
Key Highlights to Choose EmizenTech for Software Development
- Dedicated teams of software developers
- Competitive development cost
- Post-launch services
- Risk management
- Change management
- Smooth collaboration and communication
- Better resource allocation
You can streamline software designing, creation, testing, management, integration, and migration by choosing a leading software development company.
Conclusion
To know the cost of custom software development, you should connect with a trusted software development company possessing years of experience and a team of skilled developers; you can save time and effort and emerge with the required software development.
Hire a team of software developers who can give you cost estimation using a software development cost calculator.
Frequently Asked Questions (FAQs)
The cost of software development might hinder due to different factors such as:-
1) Maintenance of staff
2) Hosting expenses
3) App maintenance
4) Training
5) Strategic costs
Outsourcing software development services to markets like India can help you tremendously to save costs.
Budget is one of the measurements for the project’s success. If the project outcome is not satisfying the budget or financial resources it consumed, it can not be considered a successful project.
The time totally depends on the type of software however, you can consider an average of 16-20 weeks for a basic software solution development.
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