How much does Custom Software Development Cost?

Every custom software development has a different scope of work, integrations, and technological requirements with varying software complexities. This means that the Custom Software Development Cost will vary as per the specific requirements. To put it in simpler words, every business will have different requirements for their goals, ideas, and offerings, and accordingly, custom software development cost differs. 

Some organizations would want to build software that maximizes their efficiency and streamlines their internal process. Whereas some simply would want to provide a breakthrough in the digital product. 

All of these businesses would require custom software development for which they will need to determine the cost to build custom software. The custom software development rates will vary as per the project. It is, however, quite challenging for anyone to estimate the precise cost of software development due to the varied requirements.

If you are wondering how much custom software development costs, then you have come to the right place. This blog will help you understand the cost of building custom software and what factors determine the custom software development cost. 

It will not only give you a quick way to calculate custom software development cost, but it will also explain the variables that might have an impact. A quick description of the typical price of developing custom software based on the software’s size and various types is also available. So let’s get going.

The cost to build custom software can range anywhere from $100,000 – $180,000.

To cater to the unique requirements of their consumers, some businesses decide to create a customized CMS. A content management system (CMS) is a tool for creating and updating material, such as blogs, press releases, and even movies. 

Even though you can just use a ready-made solution like WordPress or Magento, using a customized tool may be advantageous especially if your software requires a lot of integrations of different software. 

Even if modern CMS platforms can be customized, a specially designed software solution is far more extensible and even potentially profitable. Custom software development would be quite beneficial for companies that offer novel and distinctive goods or services because they may sell them later on to outside customers and make extra money.


The size or complexity of the app isn’t the only factor in software development costs. Even if you are trying to build a simple app with different screens, the cost may compete with those of the more complicated apps.

Cost Defined by Software Complexity

The cost is defined by the complexity of the software with the set of entities, user roles, functions, size of the software, and how the software interacts with the system. The functionality of the platform determines how sophisticated the software development will be. 

The cost is also determined by the complexity of UX/UI design. 

After using an app for a while, users frequently stop using it. Poor UI or navigation is typically to blame. After the app is out, a good retention rate is crucial for user pleasure. So it’s not unexpected that companies concentrate on unique UX/UI design for the app.

Every interface’s UX/UI design includes visual components including buttons, fonts, icons, and colors. It also has to do with how simple it is for users to complete particular tasks on the app. The developers must put in a lot of work to make sure the app is visually appealing and provides a positive user experience.

Making the MVP (read how to acquire customers for your MVP) of a SaaS eWallet platform that employs machine learning to provide optimum solutions will be more difficult than doing this. As a result, the price of developing a corporate website is less than the average cost of developing a SaaS wallet.

This is a result of the SaaS platform’s numerous user roles, more functionalities, larger software sizes, and higher entities. It is therefore more expensive than custom web development.

It all later boils down to hours of custom software development and the technology stack involved in building the custom software. If it takes x hours to develop a simple app and if you are trying to build a multi-platform app with a server-side application, then the figure will more likely escalate. 

Also read, how much fitness app development costs.

What Factors Impact the Cost of Custom Software Development?

There are several factors that determine custom software development cost and most of these factors are constant regardless of the team’s location and size. Here are the factors that impact the cost of building custom software: 

The complexity of custom software varies with the:

  • The type of technology that will be required in product development
  • Number of teams required to develop the solution

Factor 1. The Level of Complexity of the Software to be Created.

As previously said, complexity includes the number of roles, integration, design creation, and software functioning. The intricacy of the answer increases with the number of letters.

Furthermore, more feature-rich solutions are more complex than ones with fewer features. Only situations with complex features like blockchain, machine learning, or AI qualify for an exception.

  • To determine how sophisticated software is, first determine which of the following:
  • The level of expertise required from developers to produce the solution,
  • The knowledge necessary for creation and upkeep,
  • The variety of object kinds that must be managed by a cloud server
  • the technology stack required to create the remedy,
  • Licenses and certifications are necessary.

Basic Software Complexity

By fundamental complexity, there is specialized software built for the purpose of giving consumers broad knowledge. It occasionally receives user data, although they are often quite a few.

Blogger is a prime example of simple complexity in software. These platforms are the majority of CRM-based ones.

Advanced Level of Software Complexity

These software programs offer both simple and sophisticated functionalities. Although they can be created by junior developers, they nevertheless need senior developers’ approval on a lot of intricate aspects. The majority of startups and scale-ups use this type of software.

BigOven is an illustration of this type of software. Due to the fact that its primary purpose is to give customers cooking instructions, the smartphone app has a minimal level of complexity.

Challenging Complexity

Many complicated functionalities, APIs, entities, and user roles are present in this kind of custom software development. Senior engineers with top-notch experience and a lot of development time are needed to create this kind of software.

QGIS, a geographic information system, is the perfect illustration of highly sophisticated custom software. This software aids in the analysis and forecasting of geographic factors including wind and sea levels.

The type of team you are partnering with is a crucial cost-determining factor to take into account.

Factor 2. The Team You Work with

In many different ways, the cost of recruiting expert developers is impacted by your preferred team. The following factors affect software development costs:

  • The level of experience and seniority of the developers engaged,
  • The development team’s location, and the vendor’s primary commercial objectives.
  • The seniority of the participating developers

The custom software development cost is dependent on the seniority of the developers engaged.

The seniority of developers and what each entails are displayed in the table below.

The location of the development team is another team-related factor that impacts project costs.

Factor 3. API and Third-Party Integrations

The system integrations you need are the next crucial factor that affects the custom software development cost. There aren’t many software products that can operate on their own. The bulk of software solutions needs to be integrated, whether it’s with legacy enterprise programs already in use, third-party apps, APIs, or both.

If you wish to link your custom software with an outdated legacy application, it could be more expensive to do so than it would be to integrate with prominent third-party apps or APIs. Additionally, creating new APIs for some products may be necessary in order to easily integrate them. This would affect the overall custom software development cost.

Factor 4. Migrations of databases

When developing custom software, the teams must efficiently migrate the old data to the new database of their choice from an existing backup.

Your database migration team must handle all parts, including validation, data conversion, cleanup, analyzing, securing, profiling, and quality assurance, depending on the size of your database, its security requirements, and any existing risks. All of this typically raises the price of bespoke development overall.

Factor 5. Platform Selection

The platform you plan to develop for is the second most significant element that affects the custom software development costs. You can design your program for a variety of systems. It can be for mobile users on Android or iOS devices.

The Vendors’ Size and Business Focus

Other factors to consider alongside the team size, the location of the development team, development hours, vendor size, and business focus are just as important to determine custom software development cost.

Software development companies end up charging different fees that vary as per the sizes, project requirements, and tech stack. This mostly depends on the availability of experienced developers in the field of the domain the project of custom software development takes. 

The custom software development cost also spends on the size of the outsourcing agency which affects the custom software development cost for all kinds of development projects.  


How much does Custom Software Development Cost?– Hidden Costs

You must also consider the hidden costs of the development process that can make your product successful. The hidden costs should always be factored in before the commerce of custom software development. Here are the costs:

  • Marketing
  • Maintenance

Hidden Cost 1. Marketing Cost

The marketing cost is a hidden cost that keeps piling on as it is the amount expended on making your product known to its target users. The cost of marketing will also depend on the following factors:

  • Email Marketing
  • Website – On-site, SEO, and off-site
  • Information Architecture
  • Social media marketing
  • PR
  • Product launches

This budget will also be spent on the overhead cost of the marketing team which could remain a hidden amount when it comes to the cost to build custom software. Therefore, it is important to have the hidden costs mentioned upfront. Read how you can reduce marketing costs.

Hidden Cost 2. Maintenance Cost

The ideal maintenance cost is anticipated to be X2 of the web & mobile app development cost every year which will eventually total up to the cost to build custom software.

If you’re developing a highly complex solution that needs government legal compliance, your maintenance cost may vary from this. The appropriate maintenance expense will cover – 

  • Email services,
  • A domain name, SSL certificate
  • Services for hosting the iOS and Android app stores
  • Technical assistance.

This expense ensures that your program is operational and offers a speedy resolution in the event of an issue or system outage. Costs for maintenance are ongoing throughout the life of the solution.

Custom Software Development Cost – Over to You!

A competent software development firm can take your concepts and produce a design while keeping the intended price in mind. Once the first design and cost estimate are finished, you can add or delete specific elements to reach your goal. 

When you begin a project, it is definitely important to assign a sensible number to your desired budget. The next step is to determine the exact custom software development costs. Custom software development involves a variety of prices.

We can make your custom software idea a reality thanks to a vast tech stack made up of amazing online, mobile, software, and next-gen technologies! We are an award-winning custom software development company that specializes in developing software from scratch or taking up on existing product development. 

Contact us now to get an estimate on the cost to build custom software development!