How much software development costs? If startups, SMBs, and enterprise-level companies are new to this concept, this is one of the most frequently asked questions. So, to understand how much it costs to develop software, we have to go through the concept from the beginning, so let’s discuss some points such as:
- What is software development?
- How much does it cost to develop software for your business?
- What are the things affecting the cost of development?
- And more!
- What is Software Development?
- Software Development Costs by Different Types
- Software Development Costs by Business Size
- Factors Affecting the Software Development Costs
- Hidden Cost Involved in the Software Development
- Why Hire Octal IT Solution to Optimize Software Development Costs?
- Key Takeaways
- Frequently Asked Questions
So, how much does it really cost to develop software for your business? The minimum software development cost can start at $20,000, but it can easily go higher depending on your project’s requirements. But that’s just the beginning. There are many more details to consider. Let’s delve into this comprehensive blog to get a clearer picture of the exact cost of developing software.
What is Software Development?
Software development is the process of designing, testing, creating, and maintaining different software applications. It comprises multiple steps that involve professionals from various fields, not just software developers but individuals such as testers, designers, and more. The software development services depends on the requirements of the business and what they are focusing on mainly. There are many successful software products present in the market.
In the next sections, we have covered different factors that affect the cost of software development.
Software Development Costs by Different Types
Software development has multiple different types. In this section, let’s examine each one and how costs can differ.
Custom Software Development
So, the software development required by industry can be of two types: first, custom, and second, they can provide the referral of the already existing software. Mostly, the client prefers to go for custom development as they want to get everything as per their requirement for the project. For the development of the software, one of the most important things that is required is finding one of the best software development companies that can ensure the development as per the requirement.
Custom software development can cost more than making similar software. It can cost around $50,000- $200,000 and can also go higher as the requirements increase.
A typical team for custom software development can be:
- Business Analysts
- UI/UX designers
- Expert Developers
- Project Managers
- Quality Assurance and Testing team
So, if you are confused about whether to go for custom or traditional software development, consult a good software development company that can assist you with the issue and provide you with better insights.
From Scratch vs. Modification
So often, software development can be of two types: it can be from scratch when the business does not have its own software before and wants to work on it now, as the technological growth in the market is encouraging them to do so to compete with their competitors.
The second category is the business that already has product software available in the market but is not doing well, so it has to include the latest technologies and trends in it. These types of modifications also come in the development of the software and can cost pretty well for the specific requirement.
Most businesses are advised to go for MVP software development if they are not sure about the project, want to see progress, or it is their first time. So, it may cost a little less than full software development as it contains only the necessary features. The cost might start from $50,000 and then increase as per demand.
On the other hand, the cost of modifying the software totally depends on the features and functionality they want to integrate.
Software Development Costs by Business Size
Every business requires software to grow in a competitive market and stay ahead of the trends. Thus, we are going to discuss the cost of developing software according to different business sizes.
Startups Software Development
Startups are small companies that are just starting their journey in the market, so they do not have limited budgets. They also focus on the unique projects that they can offer in the market to make a presence.
So, startups go for MVP development for the project so that they can put all the necessary details in the software, covering the pain point they are focusing on the target audience.
The MVP can take 45- 60 days to finish and can cost less as well. After the startup launches, the software can eventually be upgraded with more features as required.
Also Read: 25+ Mobile App Ideas for Startups to Launch in 2024
SMBs (Small to Medium Sized)
According to the Forbes market research, there are approximately 33.3 million small businesses in the US itself. Yes, that is a huge number, and with this, all the businesses are looking to enter into the latest trends, so why not SMBs? They are also dedicated and focused on working on the automation of their business processes, data management, in-build communication, and integrating multiple features in their companies. That leads to the requirement for software that can handle everything in the same place.
An estimated cost for developing such software that can manage the growth process of businesses can be from $70,000 to $100,000. It is important to note that these are the approximate figures and are not confirmed. As per the research, an average overview of the price is provided here. It can go higher or can also lower as per the need of the project.
Enterprise Level Software Development
Coming towards the well-settled companies present in the market. They are already well-known brands and have a lot of work to do internally and externally. For example, we can talk about any healthcare firm whose chain is present all over the globe. Already, they might have a number of audiences using healthcare software development, or if they are using any software for managing the work within the organization, then they are required to update that, which is the scenario here.
Inclusion of features or upgrading of this organization’s software can cost them around $90,000 to $200,000. Due to multiple reasons, security and data management are huge in their cases, and multiple other things need to be kept in mind while working on their project.
Related Post: Understanding Healthcare Software Development: Detailed Guide from the Experts
Factors Affecting the Software Development Costs
So, in the previous section, we have mentioned software development costs according to the different types of business sizes. Now, moving forward, we will cover the multiple factors that are affecting the cost of software development.
Software Type and Complexity
The factors that most affect the software development cost are the type and complexity. The given table provides a descriptive view. This average cost depends on the complexity of the project and the more time taken, and the cost will also increase accordingly.
| Complexity | Average Cost | Time Taken |
| Basic | $10,000- $40,000 | 45-60 day |
| Mid- Level | $40,000-$100,000 | 4-6 months |
| Advanced | $100,00-$200,000 | 6 months to a year |
UI/UX of Project
The UI/UX of the software is a very important part of the development process. 50% of the budget is covered in the project’s design. There are multiple steps in this process, such as working on making the wireframe of the project and then implementing it in the actual project. Make sure to make the most interactive user interface and easy to use so that everyone can get access very easily.
Technology Used
Multiple technologies are used in single software development. Apart from this, multiple platforms and other things also come under this process. Let’s look at the table for further knowledge. The technologies can differ depending on the requirement. Now, talking about the software development cost, the cost differs according to the experience of the developers and the complexity of the language. Other than this, the cost can be present in some integrations and platforms that can be conveyed by the company prior to or informed at the time the client wants something extra from the project requirement. All this can be discussed when you avail the software consulting services.
| Category | Technology |
| Programming Languages | Java, Python, JavaScript, C#, C++, Ruby, Swift, Kotlin |
| Version Control | Git, SVN, Mercurial |
| Integrated Development Environments (IDEs) | Visual Studio Code, IntelliJ IDEA, Eclipse, Xcode |
| Web Development | HTML, CSS, JavaScript, React.js, Angular, Vue.js |
| Backend Frameworks | Node.js, Django, Flask, Spring Boot, Express.js |
| Database | MySQL, PostgreSQL, MongoDB, SQLite, Oracle |
| Cloud Platforms | Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP) |
| DevOps | Docker, Kubernetes, Jenkins, Travis CI |
| Testing Frameworks | JUnit, Selenium, Pytest, Jasmine |
| Mobile Development | Android (Java/Kotlin), iOS (Swift/Objective-C), React Native, Flutter |
| API Development | REST, GraphQL, SOAP |
Geographical Location of the Development Team
The location of the software development company is also an important factor to consider when estimating the cost. The custom software development cost can also vary according to the team location. For example, a developer from the USA is much more expensive than the one residing in India. Here is the table distinguishing the average cost of hiring software development team from different geographical regions.
| Region | Cost of Hiring |
| USA | $90-$100/ hr |
| UK | $80-$85/ hr |
| Europe | $79-$80/ hr |
| Australia | $60-$70 / hr |
| India | $40-$50/ hr |
Hidden Cost Involved in the Software Development
Apart from these costs, there are multiple hidden costs that are available in the software development process. We have listed down below for reference so that you do not get a shock if it is your first time in development.
Software Maintenance Cost
The work does not end after the software is developed. It needs to be maintained in a time to time along with the update to improve its functioning and avoid errors.
Software testing services and maintenance is a must-have process that most businesses carry out. The cost of software maintenance should be 2x the development cost.
The maintenance should be done very carefully, taking care of everything at the time and should be done properly, thus requiring an adequate amount of money. Hence the businesses should make sure of these things in advance.
Software Marketing Cost
Marketing plays an important role at the time of the development of the software and after the project completion as well to reach most of the audience the businesses are focusing on. This can be a cost that one should keep in mind when starting the project. They should decide the work accordingly and make sure that the marketing costs are put apart from the development costs at the start.
If your software development costs $100,000, then the marketing budget should range between $200,000 and $300,000.
Read More- LIMS Software Development (Lab Information Management Software Development)
Cost of Add On Tools
When you want to develop software that can perform everything for the business benefit and should contain every feature possible. It can become complex for the development phase as well as the time of the development will also increase turning into multiple years. So better, you can leverage external services where you can get the functionality you need in less time. These are some of them that can be included.
- Chatbot
- E-mails
- Image Recognition
- Voice to Text
- APIs
- and many others,
Why Hire Octal IT Solution to Optimize Software Development Costs?
So, are you deciding to develop custom software for your new or existing business? If so, you can choose Octal IT Solution as your software development company.
Why? Well, you can make software with expert assistance. At Octal, we have a team of skilled developers who are well-versed with the latest technology and trends. With these years of experience, we ensure you work on every detail perfectly, also meeting cost-effective results to match the demand for every business requirement. From the past few experiences, the average software development cost can start at $20,000 to more as per the requirement.
Key Highlights
- Awarded by Clutch, GoodFirms, Business of Apps etc.
- Round-the-clock Assistance
- Smooth Communication
- Ongoing Maintenance and Support
- Data Privacy and Security, etc.
Still, have some queries, schedule a call today and get free assistance for every detail.
Key Takeaways
The software development costs can vary significantly depending on various factors such as functionality, complexity, tech stack, expertise of the developers and location of the team. Thus if you are also looking for a cost- effective development you can always go for the top software development company.
Frequently Asked Questions
The average software development cost starts from $20,000 and can go higher as per the complexity of the project and the requirement of the business.
Yes, at Octal we know the value of post- development services and maintenance, so we make sure that every client gets the best even after the project completion.
The major factors affecting the cost of software is-
1. Type and Complexity
2. Design of the Software
3. Geographical Location of Team
4. Technologies Used
There are several hidden costs available in the software development that are informed prior or recommended at the time of the necessity. These can be integration of some third party features, APIs or other. Secondly marketing cost and maintenance. Maintenance can also cost high sometime so confirm all the requirements prior beginning of the project with the software development company.
