How Much Does Software Development Cost, Exactly?

Development means dedicating time and energy to creating something new. Usually, the bigger or more complex the project, the more resources it demands. When we talk about software development, we’re talking about a complex, multi-step process that includes everything from design to testing and, finally, ongoing maintenance.

So, when you’re considering building software, expect costs to go along with it. As the saying goes, “You don’t get something for nothing.” The more complex or feature-packed your software needs to be, the more investment it will require.

Now, the big question: How much does it actually cost? Let’s break down these expenses so you can get a clear idea of what to expect.

How expensive is software development?

The cost of software development depends largely on the complexity of the project. If you’re looking to create something simple – like a basic mobile app or website – you can expect to pay anywhere from $30,000 to $80,000 USD. These types of projects usually have fewer features and simpler designs, so they don’t take as long to develop – hence the lower price.

However, as the complexity increases, so does the price. When you’re aiming for enterprise-level software or an app with advanced features like AI integration or real-time data processing – which often require custom software development and consulting – the costs can rise significantly. For these kinds of projects, you could be looking at anywhere from $100,000 to over $300,000 USD. Why the jump? These projects require larger teams, more specialized skills, and much more time to build and customize to your specific needs. It’s as simple as that.

The costs at different stages of software development

At this point, you might be wondering, “Where does all the cost come from?” Let’s walk through the steps of creating software and break down the costs involved in each one.

• Planning stage: This is where the team sits down to define the project goals and requirements. Business analysts jump in to clarify exactly what the software needs to do, while project managers set up the timelines. Although it usually consumes just 5-10% of the budget, getting this part right is crucial to avoiding costly misunderstandings further down the road.
• Design Stage: Here, the focus shifts to the software’s architecture and user interface. UX designers create wireframes and prototypes to visualize the user experience. This stage typically accounts for 10-15% of the budget, but it’s crucial for making sure the software is user-friendly.
• Development stage: This is where the real coding happens. A dedicated development team works hard to bring the project to life by building and integrating all the components. This stage is the most costly, often taking up 40-50% of the budget, since it requires a lot of technical expertise to ensure everything runs smoothly.
• Testing stage: After development, the software goes through various checks to catch any bugs and confirm it meets the requirements. Quality assurance typically takes around 15-20% of the budget, but it’s essential for delivering a reliable product.
• Deployment stage: The software is launched into the production environment, which includes setting up servers and monitoring tools. This phase usually takes about 5-10% of the budget, and a smooth deployment is key to ensuring users have a great experience right from the get-go.

What factors affect the cost of software development?

As mentioned earlier, the cost of software development mostly depends on how complex the project is – how many features you want, how many systems it needs to integrate with, which platforms it’s built for, etc.

The size of the development team and their level of expertise also matter, since highly skilled professionals and bigger teams tend to drive up costs. On top of that, tight deadlines or the need for ongoing support and updates can add to the budget, especially if you require fast delivery.

Another factor that affects cost is whether you go for custom-built software or tweak an off-the-shelf solution. Custom software is made just for you, which means it can handle exactly what you need, but it typically comes with a higher price tag. Tweaking existing software can save you money at the start, but you might end up spending more later if you need to integrate it with other systems to get everything working the way you want.

How much does it cost to develop software for different platforms (desktop, mobile, web)?

The platform you’re developing for has a major impact on the cost. And so, desktop apps usually run between $35,000 and $150,000 USD, especially if they need to support both Windows and macOS.

Mobile apps tend to be more expensive, ranging from $45,000 to $300,000 USD, with native iOS and Android versions costing more than cross-platform options.

Web apps are generally more affordable, around $20,000 to $80,000 USD, depending on how complex they are. And, of course, things like team size, custom features, and ongoing maintenance can all influence the final price tag.

Are there any ongoing costs after software development is completed?

Yes, they are called “maintenance costs.” After software goes live, you’ll need ongoing technical support to handle things like bug fixes and feature updates. It usually takes about 15-20% of your annual budget, but it’s important to keep the software running smoothly and avoid any major issues down the line.

How do software development costs differ based on the location of the development team?

Location can affect how much you’ll spend on software development. Teams in North America or Western Europe usually charge higher rates because of the higher cost of living there. Developers in Central and Eastern Europe or LATAM offer more affordable rates while still providing plenty of value.

That said, while going with an offshore team can save you some money, you’ll want to consider things like time zone differences, language barriers, and cultural fit because they can impact how smoothly your project runs.

How to reduce software development costs?

There are a few ways you can cut costs on software development. For example, you can:

• Focus on building the most important and impactful features first to avoid unnecessary expenses.
• Use reliable open-source software and libraries instead of costly proprietary tools.
• Adopt agile development methodologies to reduce rework and unnecessary delays.
• Hire remote developers or offshore teams for tasks that don’t require local expertise to save on labor costs.
• Automate testing to reduce manual labor and catch issues early, saving time and money in the long run.
• Use cloud services like AWS or Azure to avoid high hardware and maintenance costs.
• Reuse existing code from past projects or use pre-built frameworks to avoid “reinventing the wheel.”

Also, if you want to know more, make sure to check out our ebook on how to reduce software development costs.

Bottom line – How much does software development actually cost?

The cost of software development can vary significantly based on project complexity and features. Simple projects may cost between $30,000 and $80,000 USD, while more complex solutions, such as enterprise-level software, can range from $100,000 to over $300,000 USD. Factors like team size, development time, and customization also impact overall costs.

Trust us with developing your software

At Software Mind, we’re here to provide dedicated IT teams to bring your software vision to life – from design and development all the way through to launch and maintenance. We’ll work closely with you to understand your unique requirements – ensuring the final product aligns with your needs. We’ll also guide you on the type of software that fits your goals best, based on the challenges you’re facing.

So, if you think new software might be just what you need, get in touch! Let’s talk about how we can build something from scratch that makes your day-to-day operations smoother and more efficient. Contact us by filling out this form.