The Cost of Custom Software Development in the US Today

July 31, 2022

As a startup founder, you know software development is one of the most expensive parts of creating your company. If you haven’t found that out yet, then there’s all the more reason to read this article. We’re going to run through what affects the cost of custom software development so you can start to build a picture of what the final bill will look like and begin to shape your budget.

Cost of Custom Software Development

The cost of custom software development is the amount of money a company or individual must spend to create software specifically for their needs.

This can include the cost of hiring developers, purchasing any necessary licenses, and any other associated expenses.

The total cost will vary depending on the software complexity and size, but it is typically a significant investment.

We understand that you’re probably concerned about your marketing budget if you’re reading this article.

First, you will need to better estimate your software project’s expenses. Having an accurate estimate is important for several reasons.

These include things like:

  • Budget planning: Knowing how much you should pay for custom software is important for several reasons. Firstly, it allows you to budget for the project and understand what proportion of your overall budget will be spent on the software product development process.
  • Cost-saving: It can help you to save money in the long run by avoiding any nasty surprises further down the line.
  • Selecting a strong software development team: It ensures you have enough money to choose a strong project team who can deliver a high-quality software solution.

These are all very important things to keep in mind as you begin the development process of any software development, whether you’re starting a company from scratch or if you’re simply looking to move into a new project.

So, let’s break down what goes into the overall cost of a custom software project. That way, you can get an idea of how much your final invoice will be.

How Much It Will Cost You

When you ask software development companies how much they charge for software, you usually get the answer of ‘it depends on.

For startups, having a rough idea of how much a marketing project will cost is better than nothing, but a more detailed discussion is needed.

Building custom software is a complicated process. A development company must speak with the client before giving a quote.

A simple app that doesn’t require much interaction or back-end work will be less expensive to build.

Developing an application that performs complicated tasks, such as processing payments, is more difficult than developing a simple (non-complicated) app. This is because there is a lot more code and logic involved.

The cost of developing software is about more than just the size or complexity of an app. Even a simple app with dozens of different screens can be just as expensive to develop as a more complicated one.

The software development cost depends on several factors, including the hours needed and the tech stacks used. However, our experience working with clients tells us that most software projects cost between $50,000 and $250,000.

A basic app, which doesn’t take more than 700 hours of development, costs between $50,000 and $250,000. However, if you’re building an app with a server component, the cost is more likely to be in the six figures.

Building an app for one social media platform can cost $50,000, but developing the same app for all 3 major operating systems (iOS, Android, and web) will cost $137,000.

To build an app like UberEats, you should expect to spend around $150,000 for 3,000 hours of development work. This cost can vary depending on the features and complexity of the app.

It’s tough to nail down an exact figure for how much it will cost to build out software like this, but based on our experience with previous projects, we can tell you that it typically falls between $50,000 and $250,000.

The software development costs need to be carefully calculated before development begins. After all, businesses must make money, and these expenses should be manageable.

Custom App and Software Product Development Pricing Factors

Pricing a custom app or software product is determined by many factors. These include its core purpose, as well as specific user functionality. Pricing for custom apps and software is affected by the following:

  • Your product requirements

  • Design complexity

  • Complexity and number of features

  • Security and encryption requirements

  • Depth automation

  • Choose the platform you want to build your website or mobile app

  • Functionality to work with multiple devices

  • Speed to Market

How to Keep Your App & Software Development Costs within Reach

You have full control over how much you spend on your customized app or software solution. You can manage this cost by creating an MVP (minimum viable product or prototype) and sticking with it.Also, communicating and keeping the budget in line will help keep your project on track. A viable plan is essential to avoid scope creep, nitpicking, perfectionist tendencies, and other undesirable behaviors.

There’s nothing worse than not completing projects. Your lack of progress may be due to lack of clarity, the project complexity, or a desire for perfection. Custom software applications often have to go through several versions before they’re perfect.


Now that we have understood how to determine the cost of custom software development, we can make informed decisions when looking to hire a software firm.

Custom software solutions can cost anywhere from $50,000 to $250,000, but it depends on how long it takes to complete, how many people you need to work on it, and the complexity of the program.

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