Custom Software Development Cost: 7 Factors That Determine the Price

Are you planning to build a new product and wondering what the cost will be? It won’t come as a surprise to learn that it depends. The cost can vary greatly, and there is no one simple answer. Fortunately, you can check the factors that affect the cost and roughly estimate it.

In this article, you will discover seven key factors that determine custom software development cost to help you make wise business decisions. Read on to get the details!

How Much Does Custom Software Development Cost?

This is one of the most common questions from our clients. The final price is affected by many factors, including both your specific requirements and external market factors. Custom software is a broad term, but to make it simple we will focus on factors that determine the custom application costs. At the very beginning, it is worth asking yourself what you want to accomplish and what kind of partner you are looking for. Rates vary depending on the partner you choose. For example, the type of partner, their location, and other factors all affect the cost.

The cost of most of our solutions starts from 15.000–20.000 €. Although accurately estimating is very difficult, it is worth partnering with a company that will analyze your needs and presents an estimate based on the number of hours needed to complete the project. If you want to get a personalized estimate, fill out our short form, and we will analyze your situation to deliver important information. In case you want to boost your knowledge about IT project estimates, check out this article.

To fully understand where these amounts come from and what actually affects the cost of the software, continue reading.

Custom Software Development Cost: 7 Key Factors

We chose seven factors that, in our opinion, have the greatest impact on the final price of a product. Of course, you can probably point out some additional ones, but let’s focus first on those that matter most. We’ll cover the following points:

• Project type and app complexity
• Team
• Design and UX
• Technologies
• Testing
• Target group size
• Maintenance

1. Project Type and App Complexity

These factors are some of the most obvious ones that directly affect the final cost of the application. The first is straightforward — the type of app you want to build affects the cost a lot. Additionally, the more complex and feature-rich the software is, the more time-consuming the development process becomes, directly leading to higher costs.

The decision about app complexity is crucial from both the business and technical perspectives. We are talking about the different types of features you actually need, such as user engagement features, payments, geolocation, the number of buttons and screens, and so on. The cost also depends on how many platforms you want the app to work on. For example, choosing three platforms (Android, iOS, and web) will be more expensive than choosing just one.

It is worth considering the fact that even though some features look relatively easy to implement, proper implementation takes some time. If you are wondering how to cut costs, you can create a list of the top-priority features for your app. Also, think about creating an MVP that contains the minimum range of features. Then, you will learn what features are important for your users.

2. Team

This factor undoubtedly affects the final cost of custom software development. Depending on the type of partnership and the size of the team, the price will be different. Nowadays, outsourcing IT services is becoming extremely popular. In most cases, it is a very smart move that leads to cost-savings and convenient cooperation. Outsourcing also gives you the opportunity to work with companies from all over the world, so you get a very wide choice of partners. Today’s technology supports remote collaboration, making it effective and pleasant. Experienced companies use a variety of tools to maintain transparency and communicate easily on a daily basis.

The rates vary depending on the country the company is from. The lowest prices are usually offered by developers in India, and the most expensive developers come from the USA. Poland is very competitive compared to the rest of the world, and these developers are considered to be some of the best in the field.

The size of the team that will work on your product is also very important when it comes to cost. The team should consist of developers and experienced project managers who will advise on both the technological and business levels.

3. Design and UX

As you probably already know, providing the best user experience possible is essential these days. Although a unique design and style are extremely important, you do not always have to choose a dedicated solution (although, of course, you can).

To decide what option is best for you, let’s go back to the beginning. Consider the target audience for your product and the app’s complexity. Let’s look at a simple example: If you are planning to implement software dedicated to improving internal processes, the design probably won’t be the most important element of your project. In that case, you don’t have to invest in unique, dedicated solutions. Just use ready-made options.

However, if you intend to target the application to a very wide audience and offer a mass product targeted at various markets, then the appropriate design may be one of the most important factors influencing its success. Although it will require additional work hours, the investment may pay off and result in attracting a large number of users. As you may have noticed, the design will influence the cost of your application.

4. Technologies

Custom software development cost is also influenced by the language and technologies used to create it. Obviously, it all depends on your needs and project requirements. To learn more about how to choose a specific technology for a project, we recommend reading this article.

Programming in PHP is much cheaper than other options because this technology has been on the market for years and has become very popular. It attracts users with a variety of ready-made functions that can be easily applied in the code. JavaScript programming applications are more expensive. However, Java is usually used in large corporations to build heavy and complex applications (it is especially suitable for banking solutions).

5. Testing

The application’s key elements should be well-tested — our goal is to eliminate any errors and ensure the product operates correctly. Tests are an integral part of creating dedicated software. Unit or automatic tests are not always written at the beginning, so you often have to come back to test the entire system later. Of course, such tests affect the cost of the application but ensure its stability and convenience.

6. Target Group Size

Although it is a result of the previous points, this factor worth highlighting anyway. Think about your target group and their expectations. You have to adjust the product to suit the target group in terms of functionality, design, and other technological elements.

For example, if you want to create an internal tool, the application’s security will be important, but not as important as it is for a product used by millions of people. Such software must be well prepared and then maintained, affecting the price. This leads us to the next factor.

7. Maintenance

This cost will appear over time, but it should be kept in mind when planning the application budget. Ongoing maintenance is very important because it allows you to constantly improve the application, adapt it to the current market requirements, eliminate possible errors, and make needed updates. Maintenance is an essential part of the app development process.

Over time, products may also require changes or new functionalities. Although we are talking about possible future steps, you should keep them in mind so that you’re prepared for such an investment to constantly improve the system.

Software Development Cost: Summary

As you can see, the cost of your product depends on many different factors. We have highlighted some key points, but the topic is huge.

The key to success is partnering with a company that understands your business needs and can provide an appropriate estimate. As mentioned earlier, it is impossible to provide the exact price for the project, but the more information we get from the client, the more personalized an estimate we can prepare. The estimate helps you see the price of different functionalities, and it makes it easier to decide on the final shape of the application and its elements.

If you want to explore custom software development costs — contact us — we will explain everything in detail and estimate your project.