How much does software development cost?
How much does software development cost?
$10,000 – $50,000 average cost for simple app
$50,000 – $300,000+ average cost for medium to complex app
Software development costs
Software development costs range from $10,000 to $500,000+, depending on the app complexity and features. Simple apps start at $10,000 to $50,000, while enterprise solutions can exceed $500,000. Factors like the design requirements, platform support, ongoing maintenance, and the team's location also significantly impact the final price.
| Software type | Average cost | Description |
|---|---|---|
| Simple app | $10,000 – $50,000 | Basic functionality; limited screens; standard UI components; minimal integrations |
| Medium complexity app | $50,000 – $150,000 | Custom features; API integrations; user authentication; database backend; responsive design |
| Complex app | $150,000 – $300,000 | Advanced features; real-time functionality; complex workflows; multiple integrations; high security |
| Enterprise app | $300,000 – $500,000+ | Mission-critical systems; extensive integrations; compliance requirements; scalability; advanced analytics |
What affects the cost of software development?
Several factors influence software development costs, from the type of application you're building to the expertise of your development team and more.
Software type
The type of software you need dramatically affects development costs. A simple mobile app with basic features costs significantly less than a complex enterprise platform with advanced functionality.
Different software categories come with varying complexity levels:
Mobile apps typically cost less than web platforms due to focused functionality.
E-commerce platforms require payment processing, inventory management, and security features.
SaaS applications need subscription management, multi-tenancy, and scalable infrastructure.
Enterprise software demands robust security, complex workflows, and extensive integration capabilities.
Features and complexity
The complexity and features in the app also have a major impact on the cost. Each additional feature requires design, development, testing, and maintenance. Complex features like real-time chat, video streaming, or AI integration can double or triple your development costs.
Common features and their impact on the cost include:
User authentication and profile management: $3,000 to $8,000
Payment processing integration: $5,000 to $15,000
Real-time chat or messaging: $10,000 to $25,000
Advanced search and filtering: $5,000 to $12,000
Push notifications: $3,000 to $7,000
Admin dashboard and analytics: $8,000 to $20,000
AI and machine learning features: $25,000 to $100,000+
UI / UX Design
Quality design significantly impacts both development costs and user satisfaction. Professional user interface (UI) and user experience (UX) design ensures your software is intuitive, accessible, and visually appealing. Design costs typically range from 10% to 20% or more of total development costs.
Keep these design complexity levels and prices in mind:
Template-based design: $2,000 to $5,000 (using pre-made UI kits and standard components)
Custom design: $10,000 to $30,000 (unique branding; custom components; user research)
Premium design: $30;000 to $75;000+ (extensive user testing; animations; accessibility compliance)
Investing in quality design up front reduces development time, improves user retention, and minimizes costly redesigns later. Good UI/UX design can increase the success of your app, while poor design will almost always doom an app.
Platforms supported
Supporting multiple platforms increases development costs proportionally. Each platform requires separate development efforts, testing, and ongoing maintenance. You'll need to decide between native development for better performance or cross-platform solutions for cost efficiency.
Platform development costs include:
Single platform (iOS or Android): $30,000 to $100,000
Both iOS and Android (native): $60,000 to $200,000
Cross-platform (React Native, Flutter): $40,000 to $120,000
Web application: $35,000 to $150,000
Web + mobile platforms: $75,000 to $300,000+
Integrations
Third-party integrations connect your software to external services and tools. While integrations add functionality quickly, they require careful implementation, ongoing maintenance, and can introduce security considerations.
Common integrations include:
Payment gateways (Stripe, PayPal)
Social media login (OAuth)
Email services (SendGrid, Mailchimp)
Analytics platforms (Google Analytics, Mixpanel)
CRM systems (Salesforce, HubSpot)
Custom API integrations
Development team
The structure of your development team directly impacts the project costs and timeline. You can choose between individual freelancers, development agencies, or in-house teams. Each option offers different advantages in terms of cost, quality, and project management.
A typical development team includes frontend developers, backend developers, UI/UX designers, QA testers, and a project manager.
Team location
Geographic location significantly affects hourly rates and overall project costs. Developers in different regions have varying cost structures based on local economies, but quality and communication should be primary considerations.
Average hourly rates by region:
North America (US; Canada): $100 to $200 per hour
Western Europe (UK; Germany; France): $80 to $150 per hour
Eastern Europe (Poland; Ukraine; Romania): $40 to $80 per hour
Latin America (Argentina; Brazil; Mexico): $35 to $70 per hour
Asia (India; Philippines; Vietnam): $25 to $60 per hour
Consider time zone differences, language barriers, and cultural compatibility when choosing an offshore team.
Additional software development costs
Beyond the initial development, several upfront and ongoing costs ensure your software remains secure, functional, and competitive. Budget for these expenses from the start to avoid surprises.
Maintenance and updates: Annual maintenance typically costs 15% to 20% of the initial development cost. This covers bug fixes, security patches, OS updates, and minor feature improvements.
Cloud hosting: Hosting costs vary based on user traffic and data storage needs. Small apps might cost $50 to $200 per month, while high-traffic applications can reach $500 to $5,000+ per month. Popular platforms include AWS, Google Cloud, and Microsoft Azure.
Data migration: Migrating data from existing systems, apps, databases, or legacy platforms requires careful planning and execution. Costs range from $5,000 for simple migrations to $50,000+ for complex enterprise data transfers with multiple data sources.
Compliance and security costs: Regulatory compliance and security measures protect your users and your business from legal liability. GDPR, HIPAA, PCI-DSS, and other regulations may apply, depending on your industry and user base.
Legal costs: Professional legal services ensure your software meets regulatory requirements and protect your business interests. Common legal costs include terms of service and privacy policy drafting, trademark registration, and a comprehensive review of vendor contracts.
Marketing: Even the best software needs users to succeed. Budget for launch marketing and ongoing user acquisition costs.
Software development pricing models
Choosing the right pricing model for your software development project affects both your budget and flexibility. Each model suits different project types, timelines, and risk tolerances.
Fixed rate
Fixed-rate pricing means you agree on a total project cost up front based on detailed specifications. The development team delivers the agreed-upon features for the set price, regardless of actual time spent.
Best for:
Well-defined projects with clear requirements and minimal expected changes
Fixed budgets where cost predictability is essential
Short-term projects (3 to 6 months) with specific deliverables
Advantages include budget certainty and reduced financial risk. However, changes to the project scope typically require additional fees, and thorough planning is essential to avoid scope creep.
Hourly rate
With hourly rate pricing, you pay a set rate for actual development time spent on your project. Developers track their hours and bill accordingly, usually on a weekly or monthly basis. Rates vary based on developer experience and location.
Best for:
Projects with evolving requirements or uncertain scope
Long-term development where flexibility is needed
Exploratory or innovative projects where requirements emerge during development
This model offers maximum flexibility for changes and iterations. You only pay for work completed, making it easier to pause or pivot. However, final costs are less predictable, and diligent time tracking is crucial.
Dedicated team
A dedicated software development team is a full-time team that works exclusively on your project. You pay a monthly fee for the team's services, similar to having in-house employees but without the overhead.
Best for:
Long-term projects (6+ months) requiring ongoing development
Companies scaling their product and needing consistent development resources
Projects requiring deep product knowledge and team continuity
This model ensures dedicated focus on your project and faster development cycles. The team becomes intimately familiar with your product, reducing onboarding time for new features. Monthly costs depend on the team size and location.
Milestone-based payment schedule
Most software projects use a milestone-based payment schedule regardless of the pricing model. This protects both you and the development team by tying payments to tangible deliverables.
A typical payment structure includes:
20% to 30% up front to begin work
30% to 40% upon design completion and development kickoff
20% to 30% when core features are delivered for testing
10 % to 20% upon final launch and handover
This approach ensures steady progress while minimizing financial risk. Request detailed milestone definitions in your contract, including specific deliverables, acceptance criteria, and timeline expectations for each payment phase.
Getting quotes from software developers
Follow these tips to help you find software developers with the right skills and experience to handle your project:
Define your project requirements clearly before reaching out, including features, platforms, and timeline.
Request detailed proposals that break down costs by feature and development phase.
Compare quotes from at least 3 to 5 different developers or agencies to understand market rates.
Review portfolios and case studies to verify relevant experience in your industry.
Check references and read reviews from previous clients on platforms like Talo.
Assess communication skills during initial conversations as they're crucial for project success.
Discuss post-launch support and maintenance options before signing any agreement.
Verify technical expertise by asking about their technology stack and development process.
Request a project timeline with clear milestones and deliverables.
Understand their quality assurance process and how they handle bug fixes.
Questions to ask software developers
When evaluating software developers, ask these questions to ensure you hire the best team for the job:
What similar projects have you completed, and can you share relevant case studies?
How do you handle project management and communication with clients?
What is your development process from initial concept to launch?
Who will be on my development team, and what are their specific roles?
How do you ensure code quality and what testing processes do you use?
What happens if the project timeline extends beyond the initial estimate?
Do you provide post-launch support, and what does that include?
How do you handle intellectual property rights and code ownership?
What is your policy on change requests and additional features during development?
What technologies and frameworks will you use, and why are they appropriate for my project?
How do you handle security and data privacy concerns?
Do you offer scalability planning for future growth and user increases?
Can you provide references from clients who worked on similar projects?
What is your availability and typical response time for questions and concerns?
What do your maintenance and support packages include, and what are the costs?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.