Are you wondering how much should you pay for custom software development? The answer may be obvious: the final price of software development varies and depends on many factors. Get to know what affects the budget and learn how to reduce costs.

8 Key Factors of Custom Software Development Cost

Several factors can impact the cost of the software development process. It is crucial to understand what can influence the cost estimation and why. At, we have established the following eight main factors.

Project type and app complexity

The number and complexity of features deeply affect software development costs. The more functionalities you want, the more time will be spent on product development; therefore, the price will be higher. You need to establish whether you want a simple, medium-sized, or large project.

Team setup

Building the right team is essential. A strong IT team consists of the right amount of senior, regular and junior developers. However, with every hired developer or Quality Assurance Engineer, software development costs grow. Remember that a developer’s skill set and level also impact the prices.

The complexity of UX/UI Design

UI and UX Design is a significant factor. On the one hand, the design quality determines if users will like and use your product. On the other hand, the complexity and size of visual representation affect the budget.

Language and technologies

Some programming languages are considered more expensive than others. In reality, the cost depends on developers’ availability of a given technology. The more niche a programming language/technology/framework is, the more an hour of a programmer’s work can cost.


Quality Assurance Engineer tests the system for errors and bugs and verifies app performance. The time QA spends on testing depends on the complexity and size of the product. Not using QA from the beginning may be considered cost reduction, but in the end, it is quite the opposite – having QA prevents glitches and spending more money on maintenance.

App maintenance

Another vital part of the software development process is app maintenance. Software needs improvements, new functionalities, and updates and must be adapted to current market trends. We should not forget the security perspective – maintenance is essential to ensure software security. Maintenance has to be considered as one of the factors that affect a company’s budget.

Target group and their needs

For a product to be successful, it must meet the expectations of its target group. Analyze carefully potential functionalities, design, and other technological aspects having in mind your final user.

Client’s requirements – expectations vs. reality

Last but not least – the importance of requirements. Only after collecting the client’s demands, it is possible to establish which needs are more or less realistic. An experienced development team can provide the client with better and more financially effective solutions to a given problem. Understanding the problem is crucial and helps create different possible solutions, resulting in better cost estimation.

How to reduce costs of software development

With so many factors impacting the software development cost, lucky there are some ways to reduce it. Here are some strategies that can bring down the software development cost.

Start with Minimum Viable Product (MVP)

Minimum Viable Product is a basic version of a product. Use MVP to verify your concept and get feedback from potential users. The gathered information about the market and users’ journeys will help you decide in which direction your product should develop. With MVP, you avoid commercial risk and have control over investment.

Involve Quality Assurance at an early stage

Errors can occur at any stage of product development. If Quality Assurance (QA) works on the project from the beginning, he/she will be able to remove any bugs at an early stage. If QA is not involved early on, you may face much higher redesign costs in the later stages of software development.

Use ready-made solutions

A developer doesn’t have to write all the code from scratch and create new things. You can reduce software development costs by using ready-made solutions, e.g., open-source code and tools.

Consider outsourcing IT services

Currently, outsourcing of IT services is very popular. It is often chosen precisely because of cost reduction – you don’t have to hire software developers in-house and deal with salaries, equipment, or software. By having access to companies worldwide, you can choose the most optimal offer and delegate IT projects to a third party.

Get to know the advantages of outsourcing IT services.

Software Development: Offshore, Onshore, or Nearshore?

Cost estimation process at

At, we gather all requirements and talk with you about your project’s goals, purpose. We help you provide a clear insight into all the factors that may impact the cost.

The cost estimation process at has a few steps:

  1. Contact us via email or Linkedin and describe your needs
  2. Have an online/offline consultation with sales team
  3. Send us your requirements and technical documentation
  4. A technical expert meeting (technical representatives from both sides)
  5. Our company prepares a rough cost estimation
  6. Participate in paid cost estimating workshops (if needed)
  7. Receive a business proposal

Our team is ready to hear you out and estimate the cost of your project. During our consultation, we will be doing a detailed briefing about your idea, business requirements, goals, etc. We will also ask many technical questions that will help us determine the actual price.

Here are some must-have questions that our experts will ask you while gathering the requirements:

  1. Can you describe the type of app? For example, Web, mobile, or both?
  2. Will the app be built from scratch, or do you require us to add a new feature to the existing one?
  3. Will the app be integrated with other systems?
  4. In what kind of environment must this application work essentially? For example, Windows, macOS, Android, iOS, browser.
  5. Is there already data that must be implemented beforehand?
  6. Who will use this app, and on what devices will it be mostly used?
  7. Will the app require creating several types of users? Can you describe the user roles?
  8. What will be the nature of the service? For example, informational, product, corporate website, industry portal, thematic website, application.
  9. Is there any similar app/website/system available on the market that could serve as an example?

Use our know-how and technology to boost your business

  • We are experienced in healthcare, HR, FinTech, and logistics services
  • We provide technical and business consultancy at any stage of your project
  • We offer development services from scratch
  • You can scale up your project to the next level with us
  • or choose our full-cycle software development services
  • Our rates are very competitive
  • Quality, trust, and transparency are our core values
  • We are proud AWS Advanced Consulting Partner

Are you interested in estimating your project? Want to get a personalized answer? Contact us directly, and we will get back to you with the actual numbers.