Guide to Determine Custom Software Development Pricing

There are no two software projects that are alike.

The scope, technology requirements, integrations, and even the level of software complexity vary between them. As varied as the goals, ideas, and offerings of every business, so do its software requirements.

No off-the-shelf software can meet the needs of every business.

Every company has a different vision for its software, whether it is a startup, a scaling organization, or an established company. Some people wish to build groundbreaking digital products. Some companies want to streamline their internal processes with software. Finally, some businesses simply want to go digital.

There is only one thing they have in common: the need for custom software development. Nonetheless, estimating the custom software development pricing is very difficult due to the varying requirements.

That’s where this article comes in.

It will provide you with an estimation of your custom software development cost and explain the factors that can influence it. So, let’s get rolling.

  • Getting to the Point

What is the cost of custom software development?

As a general rule, most projects cost between $50,000 and $250,000, according to our experience. Developing a complex, medium-sized application that requires a medium-sized team of developers should cost at least $100,000. You can finish smaller projects in a few weeks for a couple of thousand dollars.

There are many factors to consider, and we’ll aid you get a better idea of what your budget should be. From here on, we should take a deeper dive into applications ranging from SaaS pricing calculators to large enterprise programs.

  • Complexity of the Project

The complexity of projects largely determines budgets. An application’s complexity refers to the number of unique and complex features it provides. These features include routing, face recognition, big data analysis, integrating other apps, and creating complex designs. To develop an app that is both complex and user-friendly, you will probably have to spend quite a bit of money.

As a result of complex business logic, long development timelines and more work for developers will be required.

  • Size of the Software

What does size mean exactly when it comes to determining custom software development pricing? Size depends on how many pages and/or screens you want. More pages and screens mean more work for developers, which is more complicated.

Software size is typically defined as follows:

  1. Small-size software usually has 10 to 15 screens;
  2. Medium-size software typically boasts 25-40 screens;
  3. Large-size software generally has 40 or more screens.

The complexity of each screen may vary, so even within those margins, the size of the software may fluctuate.

Building a small app will cost around $40,000 to $65,000. However, $65,000 to $200,000 to build a medium app and $245,000 or more to build a large app with more than 40 screens. In short, screen creation takes more time if you have more screens.

  • Complexity of Creative Design

Designing creatively can be compared to decorating a house – either it can be inexpensive or it can be extravagant and expensive. Creative design makes your product enjoyable to use, makes navigation easier and dramatically enhances the user experience.

Let’s not forget that there are various prices and quality levels of creative design. The amount of time spent working on the design will determine the outcome. Adding animations, custom artwork, illustrations, and all that jazz would raise the price since they all take time.

  • Integrations with Systems

There are many variables to consider when integrating your new software with existing solutions. You might find different price ranges depending on the type of system you are dealing with.

Integration of payment and banking systems, such as PayPal, is quite straightforward. But it might be difficult to integrate lesser-known or older systems. In contrast, the integration of legacy systems can be quite painful and requires real experts, which will certainly increase your project’s cost.

  • Location, Expertise, and Size of the Team

The number of developers you hire will determine how fast the project goes, and the more competent your developers are, the more likely it will be to produce a high-quality product. It doesn’t mean nine women can deliver a child in one month if one can deliver a child in nine months. An equilibrium must be found between the number of tasks, developers, and the amount of work they must perform.

Another important factor is the location of your team. Hiring developers from the USA is more expensive than hiring developers from Canada, as their expertise and products are at par with their American counterparts. In addition, their hourly rates range from $40 to $200. To get a decent price-quality ratio, you may want to consider Canadian software development companies that charge less and deliver excellent results, such as DFY SaaS.

It might be more challenging to hire developers in Asia because of the large number of companies and the wide price range. Choosing the right partner for the job may be quite confusing since you can find anything from $10 to $160 per hour.

It is advisable not to choose the cheapest options as they often translate into the worst quality when choosing a vendor who offers adequate quality for a reasonable price. Developers who charge around $10-20 per hour are not likely to provide high-quality service at such low rates. At least $50 per hour should be the starting point or higher than the industry average. To be on the safe side.

The productivity of your development team would also make a significant difference in the cost when you pay hourly. On the other hand, an experienced developer might charge you twice the amount compared to a less experienced developer. And the rate might go even higher if you talk about rare and top-shelf tech stacks.

  • Project Delivery Timeline

It’s essential to know the project’s delivery time when you are looking to determine average custom software development pricing

However, it’s easier said than done without having a complete understanding of the project scope, the number of developers needed to attain desired results, software complexity, and other factors. You can have the estimated cost and the deadline by setting up a quick virtual meeting with DFY SaaS’s experts. 

Of course, there are software development projects that allow you to achieve results faster by engaging more developers. But that’s not always the case because development is a bit more complex, and hiring more people won’t allow you to get the job done faster every time. 

So, what’s the estimated timeline for a software project delivery? Here’s what the roadmap looks like:

  1. Assessing requirements and road mapping takes somewhere between two to four weeks. 
  2. Coming up with an architecture and design requires two weeks. 
  3. Development work takes about three to nine months, depending on the project size. 
  4. For implementation, you need four weeks’ time. 
  5. Quality assurance testing takes another four to six weeks.
  6. Finally, the market launch requires three weeks or more time. 

We hope that in light of these facts, you will be able to determine a custom software development pricing model that matches your budgeting requirements and help you build a high-quality product.


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