Software Development Cost: What You Need to Know

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Creating software can help your business grow, save time, and make more money. However, it’s crucial to know how much it might cost before you start. It costs a lot of money to develop software, and this cost will vary based on a number of factors. Knowing what these factors are will help you make better choices and avoid surprises.

One sentence sums it up: It can cost anywhere from $5,000 to more than $300,000 to develop software. That’s a wide range, isn’t it? So, what makes one project cost a lot more than another? This article will break it down in a simple way.

What Affects Software Development Cost?

No two software projects are the same, but there are several factors that affect the price of all of them. Let’s look at the most important ones.

The Size of the Project

Think of the size as how many screens or pages the software has. A screen could be a login page, a dashboard, or a settings menu. A small app might have between 10 and 20 screens, while a large one might have 40 or more. The more screens there are, the more work developers need to do.

• A small app (10–25 screens) costs about $75,000.
• A large app (more than 40 screens) costs $250,000 or more.

You can visit https://medium.com/ to learn about the basic types of screens for mobile UI design.

Features and Functions

Different features take different amounts of time to develop. It’s quicker to build a simple login form than real-time video calls.

For $25 an hour, here are some common features:

• Search: $300–$500
• Push notifications: $625–$875
• Login: $750–$1,125
• Payments: $1,500–$1,875
• Video calls: $6,500 to $9,250

The more features you add, the more it will cost. Therefore, you have to focus on the most important ones first.

Design Quality

Design is important; a well-designed app is simple and fun to use. It also gives your software a more professional look. But bear in mind that design usually costs more, especially if you want custom buttons, icons, and images.

• A simple design means lower cost.
• Custom images and layout mean higher cost.

You should expect the design phase to change many times before it is completed.

Choosing Your Team

The team that builds your software is just as crucial as what they build. Your team can be from your own country, from another country, or from your own company.

In-House or Outsourced?

If you already have a full-time tech team, you may spend less upfront. However, this can cost more over time since you’ll have to pay them a salary year-round. If your staff doesn’t have the required expertise, it might be cheaper to hire outside help.

A lot of businesses these days hire software development companies like Imenso Software’s development team to do this job. A software development outsourcing company has a ready-made team with the skills to work on different types of software. Outsourcing may seem expensive at first, but it often leads to better results and less time wasted.

Location of Developers

Where your developers live is also important. In the U.S. and Western Europe, developers charge more than those in Asia and Eastern Europe.

• U.S./Canada: $100–$200/hour
• Eastern Europe: $25–$50/hour
• India or Southeast Asia: $20–$40/hour

When choosing a developer, don’t just go after the lowest price. Sometimes, what looks cheap at first can cost more in the long run if the work is poor.

The Role of Technology

The cost of the tools and languages developers use differs. Some tools are free to use, like many open-source options, while others require paid licenses. More complex systems also require more time to build. For instance, an app that uses both a front end (user side) and a back end (server side) will cost more than a simple static app.

• Open-source tools are free, but they may require extra setup.
• Licensed tools are easier to use, but they can be expensive.

You might need to spend more money up front to use new technologies like AI or cloud-based solutions, but they will save you money in the long run.

Platform Choices

You need to choose where your app will operate. Some apps are made just for phones, some for computers, and others work on all platforms.

• One platform: Less expensive
• Android, iOS, and the Web: More expensive

In most cases, a cross-platform app is the best option, but that has its own challenges. Therefore, you need to consider who your users are when making your choice.

Payment Models

There are two main ways to pay for software development:

• Fixed price: You pay a set amount for the whole project.

• Works well for small, uncomplicated projects.

• Not so great if you want to make a lot of modifications.

• Time and material: You pay for the time and effort the developer put in.

• Better for larger or changing projects.

• Changes are easier to make during the process.

Other Costs to Plan For

Even after the app is built, the costs don’t stop there. You will need to:

• Fix bugs. You can read this article to learn different techniques developers use to fix bugs.
• Add new features.
• Keep it working on new devices.

This aspect of the project is called maintenance, and a lot of experts recommend that you set aside 15% to 20% of your original budget each year just for this. For example, if it costs $100,000 to build your app, you should plan to invest $15,000 to $20,000 a year to maintain it.

Real-World Cost Examples

Here are some rough estimates based on the type of app you need:

Type of App	Estimated Cost
Basic MVP	$5,000 – $20,000
Simple mobile app	$10,000 – $60,000
Average business app	$60,000 – $150,000
Complex app (e.g., Uber)	$150,000 and up

These numbers depend on the number of people who work on the app, how long it takes, and the technology used.

Tips to Keep Costs Down

If you’re working with a small budget, here are a few tips to keep costs down:

• Start with an MVP (Minimum Viable Product).
• Choose the most important features first.
• Use open-source tools.
• Reuse existing code if possible.
• Make sure your development team understands what you want.

Conclusion

Software development can cost a lot of money, but it doesn’t have to break the bank. The most important thing is to know what affects the price and make smart choices early. You also need to understand your goals, choose the right features, and find a team that fits your budget and vision.