How Much Does It Cost to Develop a Software ?

Discover the cost of software development. Get insights into factors influencing pricing. Find out how to budget for your custom software project.

Jul 17, 2023 - 15:08
Jul 17, 2023 - 18:30
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It is essential to estimate the cost of a cost development before planning to develop software. After all, companies should turn a profit, and the cost of developing software or an application must be affordable. 

Read this article and find out how much you'll have to spend on software development.

Average Cost of Software Development 

When asking IT companies how much software development costs, the standard response is often, "it depends." A general response is not beneficial for new business owners when organizing their budget, but providing a precise number with in-depth talks is challenging.

The price of developing a piece of software depends on various things. Before producing a cost estimate, a custom software development company in NYC  must review the project requirements with the customer. 

Simple software with less user interaction or backend processing will be less expensive to develop. The cost of developing complicated software that handles financial transactions requires a lot of interaction and is linked to other systems will be much higher.

The size or complexity of the app is one of many factors in software development costs. The cost may be comparable to those of more complex applications if you create a straightforward app with several distinct displays. 

Ultimately, it boils down to the number of labor hours and the technological stack used to create the program. Our experience has shown that the typical software development range costs $30,000 - $100,000. A simple program that takes less than 700 hours to produce suits the reduced price tag. The cost will be in the six figures if you're developing a server-side, multi-platform program.

As it turns out, there is a huge range of variations in the average cost of software development. The technological aspects and features of the app influence the cost of creation. Additionally, understanding the software development cost breakdown can provide valuable insights into the allocation of resources. Factors such as project scope, complexity, development team size, and timeframes all contribute to the overall cost. Other non-technical issues, however, could have an impact on your budget.

Here are some of the factors that affect software development cost

Are you attempting to create a similar app like Uber? Or a basic app that doesn't need backend processing? Your decision might greatly impact how much the full development will cost. A basic app may be created with little difficulty and with little effort. Meanwhile, a tech stack, backend processing, and complicated algorithms are needed to create an Uber-like app.

Naturally, developing an app similar to Uber will be more expensive than developing a straightforward app that displays your company's most recent inventory. As a general guideline, the app should be more expansive when user engagement is required. Different user categories with varying access to profile editing privileges are supported by an app similar to Uber. 

Complexity also indicates that greater customization is required. Developers must create new scripts throughout the laborious customization process to provide the functionality needed for the app. Additionally, it necessitates thorough testing of the customized modules, which raises the price.


Your target consumers use many platforms. Therefore you should design distinct web, Android, and iOS app versions. Paying extra for the development charge implies creating an app for many platforms. To work on the various versions of the app, you'll need to recruit several development teams.

Cross-platform software development might help you save on development costs. A cross-platform program with the same codebase may be released for iOS and Android. While developing financial software with graphs and dashboards, streaming, etc., cross-platform applications may not save time if a skilled team works on it.

This leaves you with the more costly option of developing native apps for each device. A native iOS app cannot be utilized for an Android app, and vice versa. Some companies have decided to concentrate on a single platform and only work on other platforms after they have seen some success. An outstanding illustration is the software Clubhouse, which was once an Apple-only release. 

Design Complicatency For UX/UI

After using an app for a time, users often stop using it. Poor UI or navigation is often 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 concerns how simple it is for users to do certain activities on the app. The developers must put in a lot of work to ensure the app is aesthetically appealing and provides a positive user experience.

For startup entrepreneurs, such efforts come at a price. To ensure the app is created with the finest UX features, you'll be responsible for paying for all of the unique artwork, animations, testing, and redesign.  

Infrastructure on the back end and linked APIs

Any software that significantly benefits consumers seldom runs alone. These programs often interact with external systems and need intensive backend processing. Uber is a prime illustration of how intricate backend operations are concealed from the user-friendly client interface.

Users are drawn to the ride-hailing platform by features including geolocation, mapping, and various payment methods. Additionally, developers take great care to safeguard user data on the backend. These features add to the development cost because they need implementation time or money. 

Building the appropriate modules will cost more if the program requires extensive data processing on the server side. Additionally, the server-side program may need to communicate with other systems. Utilizing pre-made APIs might save development expenses, but a fee will have to be paid if a new data-exchange API is required. 

Geographical Location

Employing software engineers might be pricey, depending on your region. This is especially true if you live in the US or a country in Western Europe where developers make, on average, $100 per hour. You will be responsible for a greater software cost due to the high hourly rate. 

However, there are several places where you can have software developed for a lot less money without sacrificing quality. With numerous seasoned engineers, Eastern Europe is a preferred location for IT outsourcing. Particularly in Ukraine, the hourly wage is reasonable at $45. 

Even lower rates are available in places like China and India, but you must consider the local time zone and cultural nuances. Working with developers that speak the same language is simpler, and having real-time communication is relatively easy. 

Making the right choice may help you construct the app for less money. 

Hiring Model

Did you know that the development cost may be impacted by selecting the appropriate cooperation model? After choosing a developer, you are often given the choice of employing them on a fixed-rate, hourly, or dedicated team basis. 

A fixed-rate loan implies you'll be paying a set amount for conditions that are described in detail. There is little flexibility for modifications throughout the development, even though you know exactly how much you'll be paying the developers.

In contrast, the hourly rate model provides greater latitude for adjusting to changing needs. You are charged for the labor hours and materials devoted to development. However, you need to have complete control over the development team, and the final cost could be better. This approach is effective for new businesses. 

The third alternative, the specialized team, has been discovered by established companies to be an appealing style of cooperation. The company will get developers from the IT agency, and the startup will be responsible for paying the developers' wages while working there. The developers provide you with exclusivity, which might lead to faster development. 

Cost Estimation

We understand that each app is unique since no two companies are alike. To make budgeting easier, entrepreneurs and company owners must understand how much it costs to construct the software. 

We have a systematic procedure for giving our customers a pricing estimate. Our staff will contact you to further explore your concept and provide a software development cost breakdown after your interest in working with us. On your app concept, we'll be asking precise questions. 

We'll also consider your company's needs, objectives, and size. The required resources are then calculated using the information. Then, within 5-7 days, we'll provide you with an estimate and the architectural diagram. 


It takes much discussion between the developer and the customer to determine the exact cost of software development. In addition, non-technical aspects may influence how much it costs to develop an app or software. It's crucial to choose the appropriate developer and have a clear notion of the app in mind. 

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