Wondering how much it costs to build software like a mobile app?
The answer is: It depends.
It could be $10,000 on the low end all the way to a million dollars or more, depending on what you’re building of course.
When we work with a new client, we always run through every single detail of the costs of the project. In this guide, we’ll walk you through all of the factors that play into how much it’ll cost to make a software.
We’ll cover average costs, a few tips for budgeting, a few of our favorite ways to keep prices down, and some real-world examples to help you better estimate how much your software will cost.
Ready?
Let’s go.
Table of Contents
Key Takeaways
- Project Size and Complexity Drive Costs: Small apps with basic features may cost as little as $10,000, while large, enterprise-level platforms can exceed $1 million, depending on functionality, team size, and timeline.
- Budgeting Smartly Can Save You Money: Break your project into phases, prioritize must-have features, and include a 10-20% buffer for unexpected expenses to avoid budget overruns.
- Choosing the Right Cost Model Matters: Fixed-rate models are ideal for projects with clear scopes, while hourly-rate models work better for evolving or uncertain requirements. Agile development often saves money by addressing issues early.
- Investing in Quality Assurance Pays Off: Spending on QA and ongoing maintenance prevents costly issues later, with maintenance costs typically running 15-20% of the initial budget annually.
- The Right Tools and Trends Impact Costs: Tools like low-code platforms and open-source software can cut costs, while the rise of AI and automation continues to change the pricing landscape. Outsourcing to experts ensures you maximize ROI without overspending.
Average Cost of Software Development
Asking how much software development costs is like asking, “How much does a house cost?” Well, how big is the house? The price depends on what you’re building and how complex it is.
Small projects, like a basic app with limited features, can cost anywhere from $10,000 to $50,000.
On the other hand, large-scale projects, like enterprise-level platforms, can range from $250,000 to well over $1,000,000.
Your costs will ultimately depend on the features, technology stack, team size, and development timeline.
Cost Breakdown:
- MVP (Minimum Viable Product): A simple MVP to test your idea can cost $10,000 to $30,000. This typically includes core features and basic functionality.
- Hourly Rates for Developers: Developers charge anywhere from $50 to $200 per hour, depending on their expertise and location. Offshore teams tend to cost less, while U.S.-based developers are on the higher end.
- Typical Mobile App: Developing a mobile app with moderate complexity (e.g., e-commerce or social features) usually costs $50,000 to $150,000.
- Enterprise Applications: Large-scale software with integrations, advanced features, and high security can cost $250,000 to over $1,000,000, depending on the scope and scale.
- Maintenance Costs: After launch, expect to spend 15-20% of the original development cost annually on updates, hosting, and support.
The only way we can really know how much it’ll cost to build your app is to do a discovery call over the phone.
Main Software Development Cost Factors
The main factors that will affect your final costs include the project type and scope, the technology you use, design factors, and team specifics like roles and location.
There’s A LOT to consider. That’s why most companies end up outsourcing their software development to us. It’s just too complex and expensive (and annoying!) to do it on your own.
Here are just a few of the factors that affect the cost of developing your apps:
Project Type and Complexity
The type of project you’re building has a major impact on cost. Simple websites or single-page apps will cost far less than custom enterprise solutions or software with advanced AI features.
Here’s a breakdown of the different factors that come into play here:
App Type
The type of app—whether it’s a web app, mobile app, or desktop software—also affects pricing.
A mobile app for iOS or Android can range from $50,000 to $150,000, depending on functionality.
Web apps, which are often built for multiple browsers, may cost less if they’re simple but can get expensive with more features.
Cross-platform apps or those requiring compatibility across devices may cost even more due to additional development and testing.
App Complexity
The more complex your app, the higher the cost.
A basic app with a few simple screens and minimal user interaction might cost $10,000 to $30,000, while an advanced app with features like AI, real-time messaging, or custom integrations can easily surpass $250,000.
Complexity also increases the need for specialized developers, extending timelines and raising costs.
Always start by defining core features and scaling up as your budget allows.
Project Size
Larger projects require bigger teams, longer timelines, and more resources, which can significantly increase costs.
A small project with a few developers might stay under $50,000, while a large-scale project with multiple teams, designers, and QA testers can quickly exceed $500,000.
Break large projects into smaller phases to spread out costs and make development more manageable.
Business Requirements
Custom business requirements often drive up development costs.
For example, if your app needs to integrate with specific enterprise tools or handle sensitive customer data, expect additional expenses for compliance, security measures, and testing.
You might also need custom workflows, which require more time to design and develop.
Identifying and prioritizing these requirements early helps you focus your budget on what matters most.
Platform and Technology
The platforms and technologies you choose for your project significantly impact development costs.
Here is a bit more on how each factor affects costs:
Platform Requirements
Building apps for one platform is a lot simpler than building one for multiple platforms.
For example, creating an app exclusively for iOS may cost less than building one for both iOS and Android.
If you need compatibility with web browsers as well, the budget will increase further.
Hybrid or cross-platform frameworks like Flutter or React Native can reduce costs by allowing you to reuse much of the code, but they may not offer the same level of performance as native apps.
Technology Stack
The technology stack you choose—programming languages, frameworks, and tools—affects both upfront costs and long-term maintenance.
Basic stacks with common technologies may cost less, but if your app requires cutting-edge tools like AI, machine learning, or blockchain, expect costs to rise due to the need for specialized expertise.
Your technology stack should not only support your current project goals but also allow for future growth.
For example, if you plan to add more users, features, or integrations down the line, your stack needs to handle increased demands without major rework.
Integration with External Systems & APIs
Integrating with external systems and APIs adds complexity and costs to your project.
Connecting your app to a payment gateway, CRM, or third-party analytics platform often involves licensing fees, additional coding, and extensive testing.
At Daxima, we specialize in projects requiring integrations for educational, AI, security, and government clients, where compliance and reliability are essential. These integrations take time but are necessary for building feature-rich solutions.
UX/UI Design
Sophistication of UX/UI Design
The level of sophistication in your UX/UI design can significantly impact costs.
Simple, straightforward designs with basic layouts and standard elements are quicker and cheaper to produce.
Intricate designs with custom animations, advanced interactions, and highly polished aesthetics require more time and resources.
Sophisticated designs create an amazing user experience, but you need to balance creativity with functionality to stay within your budget.
User Experience Complexity
A seamless user experience often involves complex workflows and interactions, which can increase development costs.
For example, multi-step forms, dynamic content, or interactive dashboards require careful planning and execution.
The more intuitive and streamlined the experience you want, the more effort goes into prototyping, testing, and refining the design.
Investing in a well-thought-out user experience pays off by improving user satisfaction and retention.
Responsiveness and Adaptability of Design
Designing for multiple devices, screen sizes, and orientations is a must on today’s market.
Responsive designs that adapt seamlessly to desktops, tablets, and smartphones require additional work to ensure consistency across all platforms.
Tools like flexible grids and media queries can help, but rigorous testing is still needed to ensure everything looks and functions perfectly.
This extra effort is worth it to meet modern user expectations.
Customization Needs
If your project requires highly customized design elements, expect costs to increase.
Tailoring the design to match your brand’s unique identity—like custom illustrations, unique color schemes, or proprietary fonts—adds complexity.
These customizations often require a dedicated designer and more iterations to get the details right.
While this can increase your investment, it helps create a distinctive product that stands out in a competitive market.
Team Composition and Location
Your development team plays a big role in how much your project will cost.
Who’s on your team, how many people you need, and where they’re located all affect the budget. Here’s how these factors break down:
Development Team Composition
Your team might include developers, designers, QA testers, and project managers.
Roles like these come with varying costs, ranging from $25 to $200 per hour or $50,000 to $150,000 annually, depending on experience and specialization.
Smaller projects may only need a handful of people, but larger, more complex ones could require specialists like DevOps engineers or AI experts.
The more roles you add, the higher the costs, so think carefully about which skills are essential for your project’s success.
Team Size and Salaries
Team size directly impacts your budget.
A small team of three or four developers might keep costs low, while a larger team of ten or more adds up quickly.
Salaries vary widely depending on expertise and location.
For example, junior developers might cost $50,000 to $80,000 annually, while experienced specialists can earn well over $150,000.
Balancing experience and budget is key.
Geographic Location of the Team
Where your team is based makes a big difference in costs.
U.S.-based developers often charge more, with hourly rates between $100 and $200, while offshore teams in countries like India or Eastern Europe might range from $20 to $50 per hour.
Keep in mind that while offshore teams are more affordable, time zones, communication, and quality can sometimes be a challenge.
A hybrid team can offer the best of both worlds.
Cost of Living and Wage Differences
Cost of living directly affects developer rates.
Teams in regions with a higher cost of living, like the U.S. or Western Europe, typically charge more.
Developers in countries with a lower cost of living, such as India or Ukraine, often charge less while still delivering quality work.
Balancing your budget with the cost of living in your team’s location can help you maximize value.
Availability of Talent and Specialized Skills
Some regions have a larger pool of specialized talent for specific needs.
For instance, Eastern Europe is known for strong engineering talent, while the U.S. often leads in cutting-edge AI and machine learning development.
If your project requires niche skills, choosing a location with a strong talent pool ensures you’ll find the expertise you need, even if it means paying a premium.
In-House vs Outsourcing
In-house development gives you full control but often costs more, as you’ll need to hire, train, and manage a team.
Outsourcing, on the other hand, lets you access experienced developers without long-term commitments.
It’s typically faster and more cost-effective, especially for short-term or highly specialized projects.
Choose based on budget and needs.
Our clients typically find that they save up to 40%-50% of their project costs by outsourcing to us, since they don’t need to pay salaries, recruit specialists, or pay benefits packages.
Development Process
The development process directly impacts costs.
A well-defined process that includes planning, design, development, testing, and deployment ensures fewer delays and missteps.
Agile methods, which focus on flexibility and regular iterations, can save time and money by addressing issues early.
Traditional methods, with rigid plans, may work for simpler projects but can be more expensive for complex ones when changes arise.
Collaboration Model
Your collaboration model determines how your team works together and communicates.
Models like dedicated teams (where you hire a full team for your project) or staff augmentation (adding external experts to your in-house team) affect costs differently.
Choose a model that suits your project’s size and your involvement level—more collaboration often leads to smoother results but may require additional time and resources.
A fixed-rate model provides a set price for your project based on its scope and requirements.
This is ideal for projects with clearly defined goals and minimal expected changes.
While it offers budget predictability, it may not allow for flexibility if your needs evolve during development.
Fixed-rate works best for small to medium projects with well-established plans.
The hourly-rate model charges you based on the time spent working on your project.
This is a better option for projects with uncertain scopes or evolving requirements.
While this model gives you flexibility, it can make costs harder to predict, so it’s important to have clear communication with your team about timelines and deliverables.
Project Management Approach
How your project is managed plays a big role in efficiency and cost.
Agile approaches, like Scrum, prioritize flexibility and regular feedback, which helps reduce wasted time and effort.
Traditional project management relies on strict planning and milestones, which may be better for straightforward projects.
Choose an approach based on the complexity of your project and your need for adaptability.
Quality Assurance and Maintenance
Quality Assurance Efforts
Quality assurance (QA) ensures your software works as intended before launch.
This includes tasks like automated testing, manual testing, and user feedback sessions.
Investing in QA upfront helps catch bugs and prevent costly fixes after deployment.
The effort and tools used for QA—like automated test suites—can vary based on your project’s complexity and budget.
Ongoing Maintenance and Support
Once your software is live, maintenance is critical.
This includes updates, bug fixes, and ensuring compatibility with new systems or devices.
Annual maintenance costs typically range from 15-20% of the initial development cost.
Skimping on maintenance can lead to bigger expenses later if vulnerabilities or performance issues pile up.
Deployment and Infrastructure
Deployment and infrastructure costs depend on where and how your software will run.
Cloud-based solutions like AWS or Azure offer scalability but come with monthly fees.
On-premise solutions might have higher upfront costs but lower ongoing fees.
Infrastructure decisions should consider your software’s expected usage, scalability needs, and long-term goals.
Use of Tools and Resources
The tools and resources your team uses affect both costs and productivity.
Open-source tools can save money upfront but may require extra time for setup and customization.
Proprietary tools often cost more but come with better support and faster implementation. Balance your choice between budget and project needs to maximize efficiency.
How to Budget for Software Development
Budgeting for software development starts with breaking down your project into manageable pieces.
Define your must-have features, set priorities, and estimate costs for each phase.
Always include a 10-20% buffer for unexpected expenses—things like scope changes or additional testing can quickly add up.
If you’re working with a team, clarify their hourly rates or fixed costs upfront.
Use benchmarks for similar projects to guide your expectations.
Tools like cost calculators or consultations with experienced developers can also provide clarity.
Plan for ongoing maintenance and updates, as they can account for 15-20% of your initial costs annually.
Tips for Reducing Software Development Costs
Cutting costs doesn’t have to mean cutting corners. Here are some practical ways to save money while still delivering a high-quality product:
- Start with an MVP (Minimum Viable Product): Focus on essential features first to launch quickly and gather feedback. This can reduce development time and prevent spending on unnecessary features.
- Use Open-Source Tools: Open-source frameworks and libraries can save money on licensing fees without sacrificing quality, especially for standard functionality.
- Hire the Right Team for the Job: Choose developers with the exact skills you need. Overpaying for senior developers to handle beginner tasks can inflate costs unnecessarily.
- Plan for Scalability Early: Avoid costly rework by designing your software to scale from the start.
Pro Tip: Use Agile development. Frequent updates and feedback loops help catch issues early, saving up to 25% on rework costs.
Real-World Examples of Software Development Costs
The cost of software development can vary dramatically depending on the scope and complexity of the project.
For example, a small business recently built a scheduling app for around $50,000.
The app focused on core functionality and took three months to complete with a team of three developers.
On the other hand, a medium-sized retailer invested $250,000 to create a feature-rich e-commerce platform.
This project included custom payment systems and third-party integrations and required a team of eight developers working for six months.
At the higher end, a Fortune 500 company spent over $1 million developing a scalable, secure, cloud-based platform designed for global use.
This enterprise-level project took 18 months to complete and involved a large team that included designers, QA specialists, and AI experts.
These examples highlight how project size, complexity, and required features directly impact development costs.
ROI of Software Development Investments
Investing in software development delivers measurable returns when done right.
A user-friendly app can improve customer retention and drive sales, while automation tools reduce manual labor and save costs over time.
For example, an e-commerce site that increases conversion rates by 10% can pay for itself within a year.
ROI depends on how well your software meets business goals, so focus on solving specific pain points.
Future Trends in Software Development Pricing
The rise of automation and AI in development is making certain processes faster and cheaper.
Tools like low-code platforms are reducing the need for extensive coding, while remote and hybrid teams allow for more cost-efficient collaboration.
However, demand for cutting-edge skills, such as AI and blockchain development, is driving up salaries for specialists.
Expect costs to shift as technology evolves.
Conclusion
The truth is, software development costs vary widely depending on the size and complexity of your project.
A small app might start at $10,000, while a complex enterprise platform could exceed $1 million.
The best way to find out?
Contact us for a free consultation.
Let’s chat about your goals and build a plan that works for your budget.