How Much Does it Cost to Develop Software?

How Much Does it Cost to Develop Software?

Nov 17, 2023 03:30 PM

Cost to Develop Software

When an individual or company is trying to estimate the costs of software development, they are often faced with questions such as "How much?"

Most clients are faced with two questions regarding project work: "Can I afford that?" and "Can this be completed in time for me?" These questions are the focus of almost every software development sales meeting. Customers sometimes need to realize what factors affect the cost. Software development cost estimates can differ, and the estimation process is opaque to customers.

We will explain how to estimate the effort and cost of a software project. These points will explain the difference between time and effort. They will also explore how to arrive at an initial estimate. Finally, they will discuss specific projects with pricing estimates.

Each engagement is different, and no formula will work in every situation. We at PerfectionGeeks, who have helped companies for over a decade, are happy to provide a few guidelines to estimate project costs. We have identified three main components that have the most significant impact on project costs and timelines.

Average Cost of Software Development

It depends is the usual answer when you ask IT companies how much software development costs. It's only helpful to budget for startups if the answer is clear. However, it's easy to develop a number without extensive discussion.

Many factors determine the cost of building a piece of software. Before providing cost estimation, a development agency will need to go over the project requirements with its client.

A simple app with minimal user interaction and backend processing is cheaper to create. A complex app that requires financial transactions, heavy user interaction, and is connected to external systems will cost more to develop.

The cost of software development is about more than just size or complexity. The cost of a simple but complex app may be comparable to that of a more complicated one.

It all comes down to how many people are involved and what technology stack is used in the building of the software. Our experience has shown that the range of costs for software development is between $50,000 and $250,000. The lower price is for a simple application that requires less than 700 development hours. If you are building a server-side app for a multiplatform app, then the cost is likely to be six figures.

A simple social media application for one platform, for example, may cost $50,000. The same app, built for Android, iOS, and the web, will cost around $137,000 with 2,750 development hours. You can expect to pay around $150,000 if you build an app like UberEats.

The average MVP price of a delivery application is around $150,000, representing 3,000 hours. Many factors can affect the final price.

The cost of software development is determined by the number of people and the complexity of the technology involved. According to our experience, software development costs can range from $50,000 to $250,000.

Six main factors that affect the price of software development

Cost to Develop Software

The average cost of developing software fluctuates widely. Costs are affected by the technicalities of an app and its nature. Other non-technical aspects could affect your budget.

Here is the complete list:

App Type and Complexity

Do you want to create an app similar to Uber? Do you want to build a simple application that does not require backend processing or an Uber-like app? The cost of the entire development process can be significantly affected by your choice. It's easy to build a simple application, and the effort is minimal. Uber-like apps require complex algorithms, a tech stack, and intensive backend processing.

Naturally, creating an app similar to Uber will cost you more than a simple app displaying the latest catalog of your business. As a rule, the more significant the app, the greater the user interaction. Uber-like apps allow different categories of users to edit their profiles.

Complexity also means more customization is needed. Developers have to write code to add the required functionality. This also involves rigorous testing for the custom-made modules, which results in higher software development costs.


Your target audience is likely to be on different platforms. This means that you will need to build a version of your app for each platform, such as Android, iOS, and Web. The development fee for an app designed for multiple platforms will be higher. To work on different versions of your app, you'll have to hire separate teams of developers.

You can save money by developing a cross-platform application. The same codebase can be used to deploy a cross-platform application on iOS and Android. Cross-platform apps can save time for a team of experienced developers. Still, they may need to be more efficient when developing financial software that includes graphs, dashboards, streaming, and other features.

This leaves you with the task of building native apps for each platform. These are more expensive. Native apps built for iOS cannot be used for Android, or vice versa. Some startups concentrate on one platform at first and then move on to other platforms once they've achieved some success. The clubhouse is a great example. It was initially an Apple-exclusive app.

The complexity of UX/UI design

After using an app for a few weeks, users tend to ignore it. The most common reason for this is a bad user interface or navigation. The user experience is crucial to retaining users and increasing satisfaction after an app has been launched. It is not surprising that startups are focusing on the UX/UI of their apps.

UX/UI design involves graphic elements like buttons, fonts, and icons on each interface. It is also essential to consider how easy the app makes it for users to complete specific tasks. The developers must put in a lot of effort to make the app visually appealing and provide a satisfying user experience.

These efforts translate to software development costs for startups. You will be responsible for the costs of custom artwork, animations, and testing.

Backend Infrastructure and Connected APIs

Apps that provide a lot of value to the user are often operated in isolation. These apps are usually connected to external systems, and heavy processing is required at the backend. Uber is an excellent example of how complicated background processes can be hidden behind a simple user interface.

Users are attracted to ride-hailing platforms by features like mapping, geolocation, and payment options. The developers also take great care to protect user data on the backend. These features are expensive to implement and take time. They also add to the cost of development.

Modules that require heavy data processing on the server side will be more costly. The server-side app may need to communicate with external systems. Off-the-shelf software could help reduce costs. However, if you need a custom data exchange API, there is no choice but to pay.

Geographic Location

The cost of software development varies depending on where you are located. It is especially true if your company is located in the US or Western European countries, where developers charge an average of $100 per hour. You'll have to pay more for software because of the high hourly rate.

However, some regions offer software at a lower cost while maintaining quality. Eastern Europe is the preferred IT outsourcing region for many experienced developers. Ukraine offers a rate of $45 an hour.

It's possible to get a cheaper rate in places like China or India. However, you will need to consider the time zone and cultural differences. You can work more efficiently with developers who share the same language and have real-time conversations.

It is wise to outsource app development. You can save a lot of money. To make an informed decision, check out our guide on the cost of outsourcing app development.

Hiring Model

The costs of development are also affected by the collaboration model. You're usually presented with three different options when you hire a developer: a fixed rate, an hourly rate, or a dedicated team.

A fixed-rate contract means you will pay a specific amount for requirements that are clearly stated. You know exactly how much to pay the developers, and there's little room for change during development.

The hourly rate model is more flexible when it comes time to adapt to changing requirements. You only pay for the resources and people-hours used during development. The total cost of development is unknown, and the team you hire needs to have complete control. This model is ideal for startups.

The third option is a dedicated team. This model of collaboration has proven to be attractive for established startups. The IT agency assigns developers to the startup, and the latter pays for their salary while they are working. The developers will give you exclusive access to their work, which could result in a shorter development time.

4 Ways to Reduce Software Development Costs

PerfectionGeeks Technologies aims to develop products with a positive impact while keeping the process transparent and accessible. We have completed over 150 projects and have proven that software development does not have to be a daunting process.

There are many ways to reduce the cost of software development. Here are four practical ways to reduce the cost of software development for your project. PerfectionGeeks Technologies understands the importance of optimizing cost without compromising quality. By implementing these strategies, you can make your development journey cost-effective while remaining efficient.

Embrace open-source software

Open-source libraries and components can be used to reduce the cost of software development. Open-source software solutions can provide robust functionality, community support, and security without licensing fees. Our team ensures that any open-source software we use is compliant with the licensing requirements.

Reduce third-party integrations

Integrations are a great way to add value to software projects, but they can also be expensive. We only integrate third-party services if they add value to our core functionality and are integral to the product.

Here's an interesting fact: Integrating some third-party applications can save us money. I'll give you two examples. We wanted to add a chat function while working on a mental-health app. We found a chat service already built by a third-party provider instead of having to build it ourselves. It worked perfectly and saved us time and money.

Fintech products are no different. Instead of building our payment platform, we integrate with trusted platforms like Stripe and PayPal. This is a win for everyone because we can get reliable and secure payments without spending much money building everything ourselves.

We strike the right balance between saving money and delivering an excellent software solution. We aim to make intelligent choices that will add value to the project and keep costs down.

Implement agile project management

Scrum and other agile project management methods are beneficial. We can break your project down into smaller tasks called sprints. We can then tackle the project in smaller and more manageable chunks.

PerfectionGeeks Technologies practices Agile. This approach is excellent because it's iterative. You can receive regular feedback and adjust your priorities as necessary. We minimize the possibility of expensive rework by working in short cycles. You can focus on the essential things and deliver high-value functionality.

Simplify the design

You can reduce the complexity of software development and its costs by keeping your design simple and clean. We sometimes simplify the user interface by removing unnecessary features and functionalities. This reduced development costs and time.

At some stages of development, you can simplify the app's design or functionality to launch it faster. Only then should you polish the app. It's all about interactive development.

Software Development Cost Estimation at PerfectionGeeks Technologies

All apps are unique because no two businesses are alike. Startups and business owners should know the cost of building software to plan their budgets.

PerfectionGeeks Technologies has a systematized process for providing a cost estimation to our clients. Our team will contact you after you register your interest.

  • I will contact you to discuss your idea in detail. We will ask you specific questions about your app idea. We will also consider your business goals, size, and requirements.

  • Based on the information gathered, determine the resources required. The information gathered is used to determine what resources are needed.

  • Provide you with an estimated price along with a diagram of the architecture within 5-7 business days.

After you agree on the price, we will present a few options to build the app in the best possible way.


It takes a lot of discussion between the client and developer to get a reasonable estimate for software development costs. There are also non-technical aspects that can affect the price of developing an app or piece of software. It's crucial to know what you want and to reach out to the best developer.

Our team will be happy to discuss your app concept and provide you with an affordable price. Contact us now.

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