All You Need To Know About Software Development Pricing


Are you an up-and-coming start-up looking to launch a new software product in the market? Is your multinational organisation in search of a software developer who can build you a new custom app to implement across multiple locations?

If you are wondering how much it costs to build custom software, there is one simple answer: there is no fixed price when it comes to developing custom software for a business. Whether you hire a freelancer to develop your software or engage the services of a professional software company for the job, there is no fixed formula that can determine the exact costs that will be incurred in the process.

In this article, we will talk about two major aspects of custom software development pricing:

  1. Factors affecting software costs
  2. Various pricing options you can choose from

Factors That Influence Software Development Costs

There are a plethora of factors that may affect the costs incurred when outsourcing software development. Here are five key factors you need to keep in mind. To read more about this subject, please visit here:



There are three key components that determine the complexity of a software project. Let’s talk about all three aspects of complexity in detail and understand how they may drive up the software development prices.

1. Technical Complexity

The features that you want to include in your software product determine how simple or complex it will be by the time it is complete. There is also the question of external integrations, such as database consolidation, third-party APIs, or integration with older or existing systems. The more components you include in the software, the more complex it becomes. Sometimes, your app may not have a lot of features, but the ones that it does have might be quite complex in terms of their implementation, thus increasing the software’s complexity. The costs increase as the complexity increases.

2. Design Complexity


Sometimes, with complicated features, it becomes a challenge to find the right UI/UX design usually by XD Adobe to incorporate them successfully within your app. Complex design considerations sometimes also have to be made in order to make the app highly user-friendly. In either case, the developers would have to put in the extra effort. Additional time and labour, again, means higher software development costs.

3. Expected App Load

If you want to release the software on a large scale, it means the app is likely to be used by a large number of people at the same time. Special considerations may have to be made for the software to be robust enough to handle this type of load. Thus, a larger expected user base would also cause the development prices to go up. The development team may have to use complex technologies or strategies, or you might have to invest in a sturdy and stable launch platform.



Whether you have an in-house team for developing your software application or a third-party software services provider, you need to set a particular timeline for the project’s completion. The cost then depends on the amount of time for which your project stays in development.

If you want your software project to be completed on a tight schedule, the development team will have to increase the number of people who are part of the development team. This will cause the total software development pricing to increase.

In contrast, if you keep fewer people on your team, it will take more time to complete the project. This means you will have to keep paying the developers for a longer period due to extended work hours.

It is important to find the right balance to keep the costs within your set budget.

Development Skills

The level of skill that your software partner provides greatly influences custom software development pricing. For example, if you are launching a native app for both Android and iOS, you would have to have people who are skilled in both platforms and to choose best you can read this

If there is a certain rare yet valued technology you want to use in the development of your app, you will have to look even harder for someone who excels at it, and you need to be ready to pay the price they quote.

Team Size


A small team – sometimes with only 1-2 developers – can work for less complex projects. However, larger projects require larger team sizes. If your project requires complicated design or features to be incorporated within a short time span, it will be necessary to add more members to the development team. You may have to include specialists such as dedicated UI/UX designers, or a greater number of developers. This will impact development costs.

Developer Location

The cost of app development is often lower in developing countries than in first-world countries. According to a recent price comparison, app development cost in UK may be much higher than that in India or Indonesia.

There are many reasons behind this difference. Some of these factors are literacy rates, skill levels, and technological advancement or accessibility (or lack thereof). They determine the quality of work that one can expect from various countries. Countries with higher accessibility to the latest technologies offer better skill levels.

Where labour is cheaper, there is also often a language and communication barrier since cheaper locations are often non-English-speaking countries in different time zones. Thus, it is advised to go for service providers based in developed countries despite steeper costs.

Different Types of Pricing Models for Software Development


Software development prices can be highly volatile due to the various factors we have talked about in this article. A good software partner will offer you multiple pricing models to make sure that you, the client, can choose the option that is most financially viable for your business.

There are two popular pricing models for software development

The first one is the fixed-cost/fixed-price model, where you can discuss all your requirements before development begins. The cost and delivery date are agreed upon and the software partner delivers according to the pre-signed agreement. This helps you stay within budget. This option works well for projects which are not expected to evolve much over time.

For projects which don’t have concrete requirements from the get-go, you can choose the time-and-materials model. Here, you can experiment with your original app idea as development progresses. The development team keeps you updated about the progress of each module. If at any time, you feel that the cost is stretching out of your budget, you can take a step back and re-evaluate your priorities. To stay within your budget, you can compromise on a few features or modules that are you feel are not very important.



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