Before you start developing software for your individual or business usage, it is always crucial to consider the cost incurred to create it. Businesses are meant to earn profits and you cannot spend any amount unreasonably whether it is about developing software or an app or any other investment that is related to operations.

That is why, this blog post is created keeping in mind all about the software development cost and provides valuable insights to help businesses and individuals understand what resources and money would be needed to develop a custom app. It also covers factors contributing to the cost of development and information about the estimation of investment needed to build the custom app.

Whether you are a startup company looking to launch an MVP or an established firm, learning about different ways of costing software solutions helps in many ways. The price ranges differ from basic, average to advanced complexity. But before that let me introduce you to the diverse aspects of software development so that you can interpret whether the cost incurred to build a certain software is worth investing in or not.

An Overview of Software Development

Software is a general term that is used to describe the programs that run on smartphones, web, TV, PCS, laptops, and other virtually connected devices. The development process of a software involves designing, programming and testing of the program that is created and maintained by the company. Software development is either about developing a new tech product or upgrading an existing product with going online.

Here, all efforts are made to transform the concept or idea into a usable and functional software product. Project management systems, business automation apps, and team communication platforms are some of the smartly developed applications developed for the employees as well as for the company itself. Marketplaces, fitness apps, and financial apps are some of the applications that are created to interact with customers.

Different Types of Software Developed in the Industry

Front-end development is mostly available to the users containing visible graphical elements of a website, application, or system, and involves building user interfaces and managing client-side behavior. In front-end development, developers use JavaScript, CSS, and HTML technologies, whereas back-end development is done at the backstage of the software application or system. It comprises server-side behavior that correlates to databases, servers, and application programming interfaces. Backend development drives the process of software development as a whole and Ruby, Python, and Java languages are noticeably used as popular back-end development technologies.

Full-stack development is another stream of software development that defines the perfect combination of client-side and server-side development of a software system. Application development is another form of developing crucial software applications that performs tasks towards obtaining business objectives. It covers rapid app development, low-code, mobile, web, or any other type of software development. Mobile applications are run on the mobile devices such as smartphones, and tablets.

API development or application programming interfaces serves as a bridge between different software programs, where API integrations provide a platform to the software to interact with other software. While Data Science is studies as an intersection of programming and data analysis. Desktop development covers creating applications that exclusively run on desktop operating systems like Windows, Mac, and Linux distribution. However, desktop applications are highly restricted due to the emergence of cloud technology.

Software tools development involves developing a computer program that creates, debugs, and maintains codes facilitating an Integrated Development Environment (IDE) to write, run, and test codes. Security software development plays an important role in the software development arena by developing the software that tests the security of a program.

Cloud computing software encompasses delivering on-demand solutions without hampering the physical infrastructures or complicated internal systems. On the other hand, video game development companies create interactive software for computers, consoles, and mobile devices, where visual feedback is critically acclaimed by the user experience. Embedded systems are developed as computer systems that exist within a larger mechanical device.

Custom Software Development Cost

The cost of developing a custom software mainly depends upon the type of software being made, such as mobile applications, eCommerce software, SaaS, web applications, content management systems, and CRM software. The development cost comes with a variety of elements involved in the projects and the price charged by the developers for their service. The below given table much clearly depicts how the costing procedure goes further to develop a diverse range of software products.

The range ofSoftware Development Company in Texas, USA is much suitable to develop basic or standard style and type of software products. The pricing may go higher if more custom development models are involved to advance the software usage.

Cost Break Down at the Development Stage

Fundamentally, the cost of software development depends on multiple factors. Every component added to the software has its weight added to the project development price. The major strands affecting the software development costs can be the size of the project, the technologies used, the complexity of features, the team involved, and so on. Let’s have a detailed look at every aspect influencing the software development budget.

  • Software Bracket

The saying “More sweet with more honey” becomes meaningful when we talk about custom software development costs by type. The costs of creating basic custom software can be very low but can climb to the peak with the addition of innovative features. In other words, when you want to integrate the latest technologies into your software like AI, cloud computing, etc. the costs can go higher.

  • Project size

The size of the project plays a big role in counting the software development costs. The project sizes are generally divided into 3 categories.

Small-size project: The small-size basic project that is ideal for startups or solopreneurs can range from $10000 to $60000.

Medium-size project: A medium-sized software that requires complex features compared to basic projects can cost up to $100000.

Large-size project: The large-sized software approaching all the complex integrations, maintaining super security standards, and being scalable as per requirement can range around $100000 to $150000.

  • Difficulty levels

The complexity of software plays a crucial role in determining the development costs. As you add the layers of features to your project, it comes with an increase in the time, expertise, and complexity of the project. Significantly, higher complexity leads to increased costs.

  • Technology usage

The selection of technology to develop the software also impacts the development budget. For instance, including advanced technologies like AI and ML in your software can charge you a bomb.

  • Choice of team

Creating a team for software development also plays a part in deciding the budget of the project. The veterans are undoubtedly going to cost you more than the newbies. Both parties have their sides of advantages to tell. You have to choose a team wisely to manage your budget as well as create a successful project.

Also, The models for hiring this team affect the costs of software development. Hiring models means the mode of the team you select for your software development. The 3 primary hiring models that are used everywhere are.

1. Freelancers

Hiring freelancers can be cost-efficient as compared to full-time employees. Here you have to only pay for the services provided by them. However, managing a team of freelancers is quite difficult. For instance, when working on software development, you need different people with different expertise, and managing everyone together to bring them on the same page requires professional management skills.

2. In-house

Hiring an in-house team allows you to have a whole team at your place, working dedicatedly on your project. You get complete accessibility to be involved in the software development process. But convenience definitely comes with a massive budget.

3. Outsource

Outsourcing software development is hiring a whole team or agency to develop your software that is generally located at some other place or in another country. An attentive outsourcing process will give you access to a vast pool of talent all over the world at a reasonable cost.

Be careful while selecting an outsourcing software development company for your custom project. Choose a company with a proven record of successful IT development. Be specific about your requirements and choice of team. American companies offer a wide range of developers for outsourcing. For instance, choose a software development company in Texas to avail services from software experts on a limited budget.

  • The type of service

Software development services come in a wide variety. It can range from simple CMS software to complex SAAS software. There are multiple budgets allotted to different types of software development services ranging from $10000 to $200000. The cost of your software development completely depends on the type of product you require.

Additional Hidden Costs in Software Development

While calculating the budget for developing software, one should always consider a 5% extra for the additional hidden costs that did not show up at the initial stages. It can be for maintaining the developed software, performing marketing strategies, or offering post-deployment support to the users.

Different companies follow different policies to cover hidden software development costs. For instance, sometimes you have to pay a specific amount annually to maintain and upgrade your software regularly. Sometimes you even have to set a new budget to run.

Read this Blog: How to Avoid New Product Failure With an MVP?

Factors Affecting the Cost of Software Development

With the constantly changing development industry and the trends and technologies emerging and affecting the world of information technology, the price of developing different technical products, software and programs fluctuate. Of course, the nature of the application and technicalities involved play a significant role in determining its cost of development along with some other non-technical factors that really make a difference. Let’s review them for further information.

1. Type and Complexity of the App

Whether you want to build an Uber-type app or just a simple app that lacks backend processing, the choice can greatly affect the cost of developing the software. A simple app can be made easily and it doesn’t take much effort. Whereas, an Uber-type app is built with complex algorithms, intense backend processing, and tech-stack. Displaying the catalogue of your business, it is quite easy to develop a simple than a complex app and the reason behind this is the need of more user interaction and different user categories associated with the apps and customization needed. The new code needed to provide the required functionality of the app makes it a rigorous process of development and testing that further enhances the cost of the app.

2. Development Platforms

You may need to catch the attention of your target audience from different platforms and it means you have to build different versions of your standard application based on iOS, Android, Windows platforms, and cross-platform solutions. Hence, it costs a higher fee to make your app compatible to different platforms where different team of app developers is needed to be hired to create different versions of the app.

Though, building cross-platform app can help you save some software development cost as these types of apps are deployable on iOS and Android both type of operating systems due to similar codebase, but this case may not be suitable for financial apps here graphs, dashboards, and streaming kind of things are used. Thus, you get no option available than building an expensive native app.

3. Complexity of UX/UI Design

Generally, it happens that users forget being engaged with an app after using it for sometime and the reason behind this could definitely be the bad design and navigation facilitated while building the app. Point to remember is, user experience is always the key to get maximum user satisfaction and generate the high retention rate after the app launch. The startups as well as the established organizations highly focus on managing custom UX/UI design and implementing the software development services in the app to provide higher user experience.

Concentrating on the graphic elements like buttons, fonts, colors, and icons on all types of interfaces makes it easy for the users to perform specific tasks on the app. Developers need to make sure that the software development services they provide seems pleasing to the users and provides a satisfactory experience of using the app. The cost included in development here includes paying for all the animations, testing, redesigning, and custom works that assure that the app is built using best of all UX features.

4. Back-End Infrastructure and API Connectivity

Some of the most valuable apps for the users are operated and used by them in isolation. They are more often connected to external systems with requiring heavy backend processing. When the complicated background processes remain hidden from the easy-to-use client interfaces, the process of management covers higher costs. Advanced features like geolocation, mapping, and payment options and user data protection on the backend require immense time and money to implement and therefore, contribute to the cost of developing the software products and applications.

If heavy data-crunching is needed on the server area, building the respective module become more expensive. Also, the interaction of the server-side application is required with the external systems. However, utilizing an off-the-shelf API could lessen down the development cost, but it would be higher if you have to build a custom data-exchange API and you won’t have any choice than to pay.

5. Geographical location of the team

The geographical location of the team also matters when it comes to the budget of the project. For instance, if you are selecting a team from Asian countries like India, Bangladesh, etc. you may get a pool of talent at minimal rates but if you are selecting a team from European countries like Hungary, Poland, Serbia, etc. the price may get higher.

However, hiring a software development company from an American countries like Texas is a win-win for both sides as you get talented developers in a suitable time zone at a competitive rate.

6. Hiring Model

Software development cost also gets affected by the hiring or collaboration model. Every service provider presents three models to its customers to collaborate with the project such as fixed-rate, hourly rate, or dedicated team. Fixed rate covers the liability to pay a fixed sum for all the project requirements. When you know what you have to pay for the developers, there hardly remains any room for the changes in the development process.

On the other hand, the hourly rate model offers more flexibility when the clients have to accommodate evolving requirements. The payment is made for the people-hour and resources used in the process of development. However, the total cost differs and the clients hardly have full control on the team. For fledging startups, this model seems perfect.

The third option of hiring a dedicated team seems perfect for the established startups where the developers are assigned by the IT agency and their salary will be paid by the latter for the services provided. The exclusive services provided by the team of developers result in the desired outcome in a shorter span of time.

Practical Tips to Reduce Software Development Costs

At ManekSoft, the company’s aim remains with developing products that can impact the process to make it more accessible as well as transparent. The company has successfully accomplished hundreds of projects for its clients considering a systematic approach to software development. However, there are always the opportunity to lessen down the final cost of software development following the below stated points:

1. Use open-source tools

Make use of open-source and reusable software components wherever possible. It can be open-source libraries, frameworks, reusable code, etc. All these tools will apparently lower the cost and time of software development.

2. Focus on agile development methods

Agile development strategies allow you to focus on priorities first. It reduces the risk of bugs and errors with continuous supervision and changes wherever required. Agile methodologies like Kanban are known to provide the best results in terms of quality and budget.

3. Outsource

Leverage the facility of outsourcing your software development to companies from different regions. Check out multiple options from different regions, know their expertise, and select your software development company wisely.

Outsourcing your project to a Software company like Maneksoft will provide you with top-quality software at a commendable budget.

4. Prioritize MVP

Prioritize MVP (minimum viable product) before jumping into actual software development. An MVP will allow you to understand the core value of your product, its requirements in the market, and much more before actual software development takes place.

5. Efficient team management

Efficient team management plays an important role in managing the budget of software development. Optimize your team with all types of talent in it. Veterans can tackle complex issues swiftly with their years of experience and young freshers blow up new ideas and perform regular tasks.

Create a productive team environment to increase productivity rates and decrease time and cost of software development.


A high amount of collaboration and deliberation is needed between the developer and the client to get the precise software development cost. Other than this, there are several non-technical factors that significantly affect the cost of developing an app or a software. The important thing is to have a clear idea of the app in mind and find the best developer that could realize your idea. Team Maneksoft always remains ready to explore your app idea and provide you the best deal at a favorable cost.

Share via :