Software Development Costs: Complete Guide for 2025

How much does it cost to build a software? On average, the price to build a business platform for different domains ranges from $40,000 to $500,000+. Let’s delve deeper into the details of the cost-forming peculiarities of software creation.

In our experience, mobile and web applications are the most demanded kinds of software. Let’s focus on them. As an example, let's see how much does web development cost, as well as mobile solutions the cost depending on the complexity of software as follows:

The categories above are rather subjective. So we would like to provide you with the approximate cost of custom software development for different kinds of apps so you could see the whole picture. The prices are based on the average rate in our region (Central and Northern Europe): $50-$80 per hour. The calculations rely on Cleveroad’s experience from past projects where we delivered solutions of varying complexity across multiple industries.

In order to roughly count the software development costs, it’s necessary to provide the IT company with some basic information about your project. For example, the business domain you'll develop your app in, will also influence the final price.

We've provided rough project cost examples for some of the leading industries for you to consider.

• Healthcare - from 75,000 to 250,000+,
• Logistics - from 50,000 to 250,000+,
• Fintech - from 90,000 to 300,000+

In addition to business domain, when determining the cost of software development, we can generally ask you for the following:

• Idea. For example, you want to make an app like Tinder. So, you explain your idea to the company's technical specialists and they develop a Tinder-like MVP for you.
• Feature list. It’s important to discuss some vital features that have to be implemented. It’s also good to have the description of every feature (e.g. a map with pins, detect user's location etc.)
• Wireframes. The engineers would be grateful for your vision of design.
• Examples of the competitors’ apps or websites. Instances help you show developers what functions you adore and don’t like.
• Design. There can be just the ideas of what you like.
• Specification. (If you have one.)

At Cleveroad, we will always help your company to collect all necessary data. So you can just come up with the idea and we’ll do the rest.

The cost to develop a business platform for any domain is an essential aspect of any software development lifecycle. To mitigate risks of the project budget overrun, all the price-forming factors for your software creation should be considered and double checked beforehand.

The first factor that influences software development prices is the choice of platform. Whether you opt for a web app or mobile app (built for one or both platforms), this decision shapes the scope of work and directly impacts the overall budget. Below is a breakdown of estimated pricing ranges based on app complexity for each platform.

Note: These are general estimates, and actual software development costs can vary significantly based on specific project requirements, features, platform complexity, and other essentials.

You can also consider Flutter app development services to build software running on multiple platforms. Flutter allows you to invest in developing a single codebase that can be deployed across multiple platforms, leading to faster updates, improved consistency, and reduced time-to-market.

To help our clients optimize development budgets, we often recommend cross-platform solutions. For our client Row Nation, from Australia, we suggested Flutter app development to build one codebase for both iOS and Android instead of creating two separate native apps. This approach allowed the client to significantly reduce time and cost while maintaining high performance and a native-like user experience. As a result, the client received a fully functional app with a fast release delivered within the planned budget.

This is what Georgia Beattie, Director at Australian Rowing Association, says about cooperation with Cleveroad in the video testimonial below:

The type of software project also influences the average software development cost. There are three primary types of projects:

• Development from scratch: It involves creating a custom solution from scratch, tailored specifically to meet unique business needs. Its average cost ranges between $50,000-$250,000+.
• Legacy software modernization: This type includes upgrading and enhancing existing solutions for your business to improve functionality or performance. Your possible expenditures for software modernization services will be about $25,000-$150,000+.
• Integration of software: This entails integration of a new software with your existing business systems, ensuring seamless operation. The average cost for the ready-made solutions integration into your workflows will be $15,000-$75,000+.

Another crucial factor is the project size, implying the scope of work for your product building. This scope determines the number of hours required to complete the software development. The product development depending on the size of a project can cost from $40,000 to $300,000+.

Security and compliance are some of the non-negotiable factors affecting software development cost in today’s digital landscape, particularly for industries like Healthcare, Finance, and eCommerce. For instance, if you are building an Electronic Medical Records (EMR) system, ensuring your software complies with relevant regulations, such as GDPR or HIPAA, increases the cost of EMR implementation due to audits, certifications, and security measures expenses. Building in data encryption, secure access controls, and regular vulnerability testing can further add to the cost of a software.

Let’s revise the average expenditures to ensure your platform security:

Note: These estimates made by our experts can vary significantly based on factors such as company size, industry, geographic location, and the specific regulations and standards your software must adhere to.

The architecture of a software solution is essentially its blueprint, outlining how various components will interact and function together throughout the software development life cycle. A well-designed architecture can streamline development, but it often requires a significant upfront investment in planning and design.

Complex architectures, especially those involving microservices, demand more specialized expertise, increasing software development costs. Additionally, the need for scalability, security, and performance optimization further adds to the architectural complexity.

Integrations, on the other hand, involve connecting the software with existing systems, databases, or third-party services. This process can be time-consuming and challenging, particularly when dealing with legacy systems or multiple APIs that require custom coding. The more integrations required, the higher the software development costing (e.g., CRM development cost), as each one adds layers of complexity and testing.

Let’s make an overview of the average costs associated with various architectural and integration factors with the help of the table prepared by our specialists.

To reduce risks and avoid hidden expenses, it’s crucial to define the right architecture and plan integrations early. In practice, this often means starting from a client’s high-level idea and turning it into a clear technical roadmap with a transparent budget. That’s exactly how Cleveroad helps businesses take their first confident steps toward development.

The complexity of UI elements (e.g., custom animations, interactive features, and responsive design) can directly impact cost to develop software. For instance, complex animations might require additional programming effort and specialized tools. Similarly, designing for multiple devices and screen sizes adds layers of complexity, as each platform may have unique requirements.

To ensure a truly exceptional user experience, investing in comprehensive user research and testing is essential. This process involves creating prototypes, conducting usability tests, and iterating designs based on user feedback. Accessibility features to support users with disabilities might require additional development effort. Moreover, localization for different languages and cultural contexts can complicate the UI/UX design, adding to your software project cost evaluation.

Thus, the average costs for UI/UX elements can include the following:

• Basic UI elements: $5,000 - $15,000+
• Medium-complexity UI elements: $15,000 - $30,000+
• Complex UI elements (e.g., custom animations, interactive features): $30,000 - $50,000+
• Responsive design for multiple devices: $10,000 - $25,000+
• Accessibility features: $5,000 - $15,000+
• Localization: $10,000 - $30,000+ per language

The need for ongoing updates and enhancements to keep the interface modern and user-friendly also contributes to higher long-term software development costs. Overall, the more customized and user-centric the UI/UX design is, the greater the investment required. However, this investment can yield significant returns in terms of user satisfaction, brand reputation, and overall business success.

The development process is another significant cost-driving factor for bespoke software development. The complexity and time involved in developing both the front-end and back-end components contribute to the average cost for software development.

• Front-end development involves creating the user interface and interactions that users see and interact with. Its average cost is about $10,000 - $50,000+.
• Back-end development means building the server-side logic that handles data processing, storage, and retrieval. It can cost from $20,000 to $100,000+.

The implementation phase is equally vital, as it involves deploying the developed software into the production environment where it will be used by end-users. This step requires meticulous planning to ensure that the software integrates seamlessly with existing systems and operates as intended. Implementation also includes configuring servers, setting up databases, and ensuring that all necessary security measures are in place.

We’ll discover the main implementation expenditures for your budget that include:

• Server configuration: Setting up and configuring servers to host the software. Its price ranges between $5,000 and $15,000+.
• Database setup: Creating and configuring databases to store and manage data. The average data setup cost is about $5,000 - $15,000+.
• Security measures: Implementing security measures to protect the software and data from unauthorized access, which can cost you about $5,000 - $20,000+.

Quality assurance services are extremely important for the development process. It’s vital to test every component of the software in order to prevent or solve any possible bugs. The cost of testing in software development varies significantly based on project complexity, scope, and so on.

However, different industry estimates suggest that quality assurance can typically account for 15-25% of the total cost to develop software. This percentage can be higher for projects with complex requirements, stringent quality standards, or a high risk of failure.

The right technology partner brings expertise, resources, and a tailored approach that can optimize your budget. Understanding the key factors influencing pricing will help you make an informed decision and achieve your project goals efficiently.

Building a reliable development team starts with defining the right mix of roles and expertise. Each position, from project managers and business analysts to front-end and back-end developers, plays a critical part in moving the software development project forward.

Understanding the responsibilities and average hourly rates of these roles is essential for estimating the overall cost accurately. At Cleveroad, unlike many other software development companies, we can provide individual specialists or assemble a dedicated development team tailored to your project, ensuring you get the right expertise and helping you reduce software development costs without unnecessary overhead.

Another factor directly affecting the software development cost in 2025 is developer seniority. Junior engineers may charge less, but their limited experience often requires more supervision and longer timelines, which can increase overall expenses. Mid-level developers, typically with 1–3 years of experience, can work independently and resolve more complex tasks at a reasonable cost. Senior developers bring advanced knowledge and proven decision-making but naturally command higher rates, raising the upfront price while reducing risks of rework.

Cleveroad helps clients find the right balance of junior, middle, and senior engineers by offering dedicated development team services that optimize both quality and budget.

Nowadays, there is a tendency for completely different rates on software development depending on a region. For example, the most expensive software development price is in the US and Australia. However, such countries as Estonia provide qualified IT services for less money.

Let’s look through IT costs per hour from different regions.

The modern IT market provides quite a lot of opportunities for hiring a good software developer. The most popular and the most cost-effective ones are software development outsourcing and IT staff augmentation. Let’s discover the essentials you should know about them.

As you can see, both IT outsourcing and outstaffing models offer cost-effective solutions that can affect software development costs, enabling your business to choose the most suitable approach based on your budget and needs. Additionally, these models allow businesses to scale their teams flexibly, adjusting the workforce according to the project’s demands. Selecting the right sourcing model can significantly influence your development efficiency and overall project success for your business.

Beyond the initial development expenses, there are several other costs that can significantly impact your overall budget. Below is a breakdown of common additional costs to consider when budgeting for software development.

Feature creep refers to the unplanned addition of features during the development process, which can drive up costs and extend timelines. While it's difficult to provide an exact average, unexpected feature creep can often add 10-20% to the initial project budget, depending on the complexity of the added features and the stage of development at which they are introduced.

It’s essential to have a well-defined project scope from the start to mitigate these risks. However, flexibility can be beneficial when adding necessary features, as long as they’re properly accounted for in the budget. Ignoring feature creep can lead to delays and hidden costs that derail a project.

At Cleveroad, we address this challenge through our Discovery service: within this framework, we create a clear development roadmap that separates features for the MVP release from those planned for future improvements. This approach helps avoid unforeseen expenses and keeps the budget expenses predictable and cost-effective.

One of the key cost factors often overlooked in a software development project is infrastructure. Hosting and cloud fees, server resources, and licenses or subscriptions directly affect the Total Cost of Ownership (TCO). On average, hosting services range from $30 to $500+ per month, while essential licenses and subscriptions add $50–$300 monthly. Factoring these expenses in from the start provides a more accurate cost estimate of how much does custom software actually require.

Equally important is ongoing maintenance, which ensures your system remains stable and secure. Regular updates, bug fixes, and security patches typically account for 15–25% of the overall cost annually, or about $5,000 to $25,000+ per year depending on complexity. Neglecting this part leads to hidden risks, delays, and higher long-term expenses. Cleveroad helps clients plan for both infrastructure and maintenance, reducing time and cost while keeping operations sustainable.

Security and compliance are some of the non-negotiable factors affecting software development cost in today’s digital landscape, particularly for industries like healthcare, finance, and e-commerce. For instance, if you are building Electronic Medical Records (EMR) system, ensuring your software complies with relevant regulations, such as GDPR or HIPAA, increases cost of EMR implementation due to audits, certifications, and security measures expenses. Building in data encryption, secure access controls, and regular vulnerability testing can further add to expenses.

Let’s revise the average expenditures to ensure your platform security:

Note: These estimates made by our experts can vary significantly based on factors such as company size, industry, geographic location, and the specific regulations and standards your software must adhere to.

Performance optimization involves fine-tuning the software to reduce load times, improve response times, and enhance overall efficiency. This may require additional development work, such as refactoring code or upgrading hardware to meet performance requirements. Although these optimizations may seem like an extra expense (performance optimization can typically add anywhere from 10% to 30% to the overall development costs of a software project), they prevent future issues like slowdowns or crashes, which can harm user retention.

Our team of experienced developers can help you optimize your software's performance without breaking the bank. We employ proven techniques (e.g., code and database optimization) to identify bottlenecks and inefficiencies in your code, allowing us to make targeted improvements that deliver significant performance gains without incurring excessive costs.

Cleveroad is a competent software development organization based in Central and Eastern Europe. Since 2011, we've been assisting startups and enterprises of all kinds in acquiring a wide variety of IT services and customized software products.

We have expertise in many business domains, including key industries like Healthcare, Logistics, and FinTech. Moreover, we are ISO-certified company, certified with ISO 9001 and ISO 27001 standards. They ensure the highest quality and security in our software development work. Our services include custom software development, IT consulting, legacy software modernization, and more, tailored to meet the unique needs of your business.

Now we’ll tell you about how we estimate software development price for your project. After you leave a request on our website, your personal manager (with experience in your business domain) will answer you within 24 hours to schedule a consultation for further project discussion.

After collecting all information, we prepare two types of cost estimation for you: Rough and Detailed.

A rough (or approximate) estimate is thought to be the most accurate amount. Its precision can range from 75 to 25%. This information should not be considered as a contract with set terms and conditions. It is given to a customer just for informative purposes.

We make two types of rough estimates:

1. The first one made after the Solution Design Workshop
2. The second one after the Discovery Phase

The Solution Design Stage rough estimation is made looking back on our experts’ previous experiences in similar solutions delivery. Our main goal is to determine the work scope, solution concept complexity, and also define possible pitfalls and challenges to start working on strategies to avoid them. Usually, we offer our client to choose three estimate variations: optimistic, realistic, or pessimistic. Depending on your choice we will understand how exactly to make an estimate: including all demanded features or just basic ones, to go in accordance with a budget and quality levels of non-functional requirements.

The Discovery Phase rough estimation is happening after the start of the Discovery phase. Here we create a more detailed features list, proceed with the business goals definition, determine possible development issues, and think more precisely of the architectural solution. This helps to correct the previous estimation and concretize the task and challenges for a development team.

When a customer is unsure whether or not they will collaborate with the software development team, this assessment is factored into the initial stage of the cooperation.

A detailed software development cost estimate is the most exact one in project management, with about 100% accuracy. It is carried out with the participation of developers who will be actively engaged in your software product creation.

Detailed estimates are based on thorough description of the forthcoming software platform, including wireframes, specs, and other documentation. Our managers will offer a thorough assessment within two business days if a customer approaches us with a ready-made paperwork package.