How Much Does Custom Software Development Cost? An Overview

The cost range for a custom software development project is vast, and can span from $20,000 to $500,000. While a number of factors affect the cost of any given project, knowing the direct and indirect costs is essential for budgeting for the project.

Below we outline some of the main factors that can affect the cost of a custom software development project.

Software requirements

Initial meetings with a software development vendor should include a rundown of project requirements, client budget, and cost estimation. A simple app with low-level requirements could range from $20,000 to $80,000, depending on specific tech needs. Expect 600-700 hours of development time at the very least.

High-end apps that work on multiple platforms with heavy server-side demands could even reach six figures, as high as $500,000.

Company Size

Businesses of different sizes have different software needs.

A startup will have a lower budget and more pressure to get a product to market, and typically will not be able to commission a minimum viable product (MVP) above $45,000.

Small and medium enterprises can afford more expensive products of up to $100,000, and are more likely to be able to invest the time needed for a quality custom solution that stands out from the competition.

Large enterprises with thousands of employees need to pay particular attention to security and compliance and require more expensive solutions that can go as high as $500,000.

Product Type

Each type of software has different requirements that should be factored into costs, for example, a simple mobile app that displays text with simple colors would be cheaper than a virtual reality game with immersive graphics, or a blockchain-based Web3 platform. Certain product types, such as healthcare apps, will require more specialists on the team, whose skills command a higher premium.

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