Custom Software Development Cost Estimation For Your Projects

When building a custom software solution, the first question you are likely to come across is “how much does it cost to build a custom software solution?” Or, they want to estimate custom software development cost. The new-age customer-oriented tech world propels businesses to develop custom software solutions to meet their customers’ unique needs. Since it assists them in conducting various operations in a specific way, building a custom software solution will solve day-to-day challenges.

Just like the various factors playing a vital role in building a custom software solution , there are plenty of things you need to consider to estimate the cost of creating custom software. Many factors impact software development costs, from your preferences and need to features and hourly costs. However, it’s tedious to predict the exact cost; this article will help if you are exploring how to estimate software development cost.

Whether you’re an individual or an organization willing to build a custom solution, knowing the expense is a preliminary need. Through this article, you’ll get to know everything needed relating to the price of creating custom software. Let’s look up and down!

Custom Software Development: At A Glance

Custom Software development is a process of creating software customized for a specific set of users. The process involves analysis, design, development, deployment, and post-development maintenance of the software product. Contrary to commercial off-the-shelf software, custom software solutions target a narrowly defined set of users and businesses.

Microsoft Office and Sitebuilder.com can be the best examples of commercial off-the-shelf software. They meet the general needs of website creation and office productivity.

On the other hand, a field services equipment maintenance system for a manufacturing company, or an online banking application built to meet the bank’s and its customers’ specific needs, can be an example of Custom-made software solutions.

Factors Influencing The Custom Software Development Cost

This section of this article comprises the 7 most significant facets that influence the cost of creating custom software. However, we’ll discuss some more factors affecting the price of Custom Software Development; let’s assess these before we move forward.

Size Of Software

The size of the software you want to build plays a vital role in affecting its development price. The bigger your project, the more effort and time it will take to build. Gauging the size of the software can allow you to anticipate the overall development cost. For example, building software for a start-up and its limited needs will take less time compared to a full-fledged one for an enterprise business.

You can calculate the software development price depending on your project size.

Complexity

Another key differentiator for Custom Software Development Cost is the project’s complexity. A complex project has numerous variables making it difficult to estimate and implement. For instance, if you want to build software with a new feature that’s rare to the market and never done previously, you need to hire a developer embellished with the next level of knowledge and experience before heading up into the development process.

The complexity of your project may lead to a higher development cost and a massive amount of time to accomplish it.

App Integration

The app integration you require greatly influences your project’s cost. There are a limited number of software products that work independently— as most of them need integration either with APIs, third-party applications, or your existing legacy applications. Integration with a third-party app or other APIs might not be as expensive as integration with your existing legacy system. It sometimes needs to create new APIs to integrate them flawlessly, leading to additional expenses in software development projects.

Required Team

The team required for Custom Software Development is another factor altering the price of the same. The more members you require for a project, the more you will have to pay. You need a large team to create software for enterprise business with several new features, customization alternatives, multiple screens, and so on. Unlike enterprise apps, if you want to build a single-page app or MVP development, a small team will suffice.

Depending on the required team, you need to increase or decrease your project’s budget.

Platform Choice

The platform you build your software for has a lot to do with the expense of its development. There are several platforms on that you can deploy your software. For example, to target mobile users, you can choose iOS or android. When you need to target desktop users, you can prefer platforms like Mac, Linux, Windows, and so on.

Whatever platform you select to develop software for will affect the price of the development.

Database Migration

Database migration can affect the cost of software development to a massive extent. Developing Custom Software requires developers to create a backup of the existing data and migrate it into a newly selected database. The size of the database, existing vulnerabilities, and security requirements will increase the overall cost of creating custom software because the development team has to handle multiple facets, including analyzing, profiling, quality assurance, data validation, and so on, leading to an enhanced cost of development.

Required Creativity

Businesses, especially start-ups, are more likely to be innovative with their software. They try to add new and attractive features and create incomparable UI. For this to be true, they need experienced developers and graphic designers, resulting in an increase in software development costs. The more you want to be creative, the more price you have to pay for your Custom Software Development.

Prerequisites Needed To Estimate The Custom Software Development Cost

You need to explore some prerequisites to determine the exact cost of creating custom software. Your business goals, targeted audience, and the type of software you want to build help you define the cost you’ll invest in.

Audience You Target

The target audience is those interested in a product and services you deliver. Understanding your target audience will help you build software with only the necessary features and functionalities, resulting in a reduced investment. Conducting an intensive analysis of competition, market research, and the latest trends will allow you are getting a crystal-clear idea regarding software product development cost.

Your Project’s Goal

Realizing your project’s goal has a lot to do with your product development. Highlighting the goals will enable you to design software that’s worth the efforts and investment you make. A well-defined goal you want to accomplish capacitates developers to stay focussed on the target, circumventing any distraction resulting in a reduced cost of product development.

Type Of Software

The custom software development cost will also depend on the type of software you want to build. Considering the type of software you want to build is something that must be decided in the initial phase of Custom Software Development. The more required features and complexities of a project, the more increased the budget will be. The types of software you want to build help you determine the overall cost of the software development.

Cost Of Custom Software Development: Based On The Business Size

Have you ever wondered how the size of your business can differ from the price of the software you want to build? If you haven’t, you’re wrong! The Custom Software Development cost can differ depending on the size of your business. Depending on the company’s size, you require features and functionalities, resulting in a huge difference in the development cost. Let’s measure how the expense can vary based on business size!

Start-ups

Start-ups are organizations embarking on their businesses with limited resources and have different requirements compared to enterprises. They are more likely to have software that meets most of their needs and that of their customers at a limited cost. Basic applications are known as MVPs (minimum viable products).

As a start-up, you can create software with limited features in less time and cost. The average cost of Custom Software Development for start-ups can be anywhere between $30,000 to $450,000

SMEs

SMEs stand for small-to-medium-sized businesses. They can also benefit from the lower-cost Software Solutions but might need more features and functionality compared to start-ups that can increase in price. An SME may wish to develop a website that sells products online and an application for conducting internal operations. The cost of custom software development for SMEs may be between $70 000 to $100,000.

Enterprises

An enterprise organization often has plenty of resources and requirements– as they are developed and making efforts to grow more. These businesses are more likely to build complex solutions that can be customized as per their needs. Furthermore, a large business has many processes and operations needing to be done flawlessly and effectively. Hence, developing a full-fledged solution can meet their specific needs. The average cost of building Custom Software for an enterprise may be between $100,000 to $500,000, and sometimes more than that.

Cost of Software Development Based On What You Want to Build

Irrespective of the industry domain, the size, and anything else, businesses always want to create something unique to satisfy their needs. The question that arises here is, how much does it cost? Let’s have a sneak peek at Custom Software Development’s price based on what you want.

Customer Relationship Management (CRM)

CRM software solutions help different companies organize their notes, activities, and so on into a single system. It enables sales, marketing, and customer service teams to access real-time user data and use it to enhance their efficiency. Salesforce Sales Cloud and Hubspot are the best examples of well-known ready-made software solutions. However, companies willing to have unique tools can opt to choose Custom Development Services.

A CRM software solution’s average cost may be between $150,000 to $300,000. The price can differ depending on the features, integration with other business software, and AI/ML-based functionality.

Enterprise Resource Planning (ERP)

ERP software allows companies to conveniently manage and automate their business processes. The system lets organizations bring multiple activities, for instance, financial, operational, reporting, commercial, supply chain, human resource, and so on, into a single place. With ERP software, a business owner can keep track of processes and measure how to make them more efficient.

ERP software allows companies to conveniently manage and automate their business processes. The system lets organizations bring multiple activities, for instance, financial, operational, reporting, commercial, supply chain, human resource, and so on, into a single place. With ERP software, a business owner can keep track of processes and measure how to make them more efficient.

Sage 300, Netsuite, and many others are some of the well-known off-the-shelf ERP solutions available in the market. These one-size-fits-all products work but may not serve entire purposes; hence you need Custom Software Development. Depending on needs, the overall cost of ERP development may be between $250,000 to $800,000 and sometimes more.

Want to build an ERP Solutions for your business? Connect with us today to discuss a project.

Content Management System (CMS)

CMS enables its users to develop, upgrade, and manage content on a website with no need for coding skills. The system also performs document management functions. WordPress and Magento are the popular content management systems frequently used by organizations across the globe. You can also use ready-made tools available, but better performance needs a Custom Solution.

A customized solution according to your business will be way more efficient than solutions built for general use. An overall cost of a Custom Software Development with unmatched features and functionality will go anywhere between $45,000 to $90,000 and sometimes more as per the additional features you require.

Minimum Viable Product (MVP)

An MVP is a product with features to allow users to assess its value and provide feedback. An MVP can be anything from LMS to CMS. The preliminary purpose of creating an MVP is to gauge the requirements of the product. Facebook, Zappos, and Dropbox are some of the thriving businesses that started as MVPs.

Creating a Minimum Viable Product cost can vary based on the type of software you’re going to build. An MVP development with simple features may start around $50,000 and go up to $250,000 for a complex one.

Learning Management System (LMS)

An LMS capacitates users in developing, delivering, and managing educational materials and organizing and tracking training for their customers, employees, and so on. The primary advantage of an LMS is it allows 24/7 access to learning materials for learners from any devices connected to the internet. Schoology, Blackboard Learn, and so on are some of the popular LMS used by educational organizations. These solutions are easy to use and cost-effective.

However, these tools are used to cater to general purposes; if you require solutions specifically tailored to your needs, you need to consider Custom Software Development. A Custom LMS development can cost anywhere from $80,000 to $150,000. However, the price can go up and down depending on the required features.

eCommerce Solutions

An eCommerce software solution enables organizations to create websites to promote and sell their physical as well as digital products. The system offers the ability to integrate an online store into the business websites to give users access to the products and services. Most businesses prefer using eCommerce platforms like Magento, OpenCart, Shopify, WooCommerce, and so on, while others might need Custom solutions.

eCommerce websites built on CMS like Shopify, Magento, OpenCart, and WooCommerce can cost you around $20k to $70K and sometimes more than that, as per the customization and integration required. A Custom eCommerce development starts from $50K for a simple one and goes up to thousands of dollars according to the features and functionalities required.

Supply Chain Management Solutions

Supply Chain Management systems generally cost you a very higher price. The reason for the high costs is different types of software needed to be built for these solutions. These products help a company find the best suppliers, make orders through distribution channels, and monitor inventory levels irrespective of location. Besides, these software solutions manage the customer relationship of companies.

The process, customization, and much attention paid to product development lead to a higher expense of supply chain management solutions. The cost of creating a supply chain management software can range anywhere from $100,000 to $300,000, depending on your needs.

Software-As-A-Service (SaaS)

Saas applications deliver services over the internet without needing to download and install. It can be accessed via an internet browser and run on a cloud server. A software-as-a-service application can be anything from a business tool to an office application. Some examples of Saas applications are Slack, Dropbox, and Microsoft Office 365. You can access these apps from any device with a browser installed and a pay-as-you-go model.

Businesses investing in Custom Saas Development can get benefit from an easier launch and squeeze the opportunity to get exponential growth. The average price of creating a Saas application ranges from $80,000 to $250,000, and the cost can vary depending on the features and integrations you require.

On The Lookout For Creating Custom Software?

How much will it cost to develop a custom software application? This question pops up in the mind of anyone interested in building a Custom Software Solution. Considering an exact cost for the same is often a bit overwhelming– as no two software products are the same and vary in pricing and requirements.

As for example, according to Statista the average cost for mobile app development is different based on the region.

As you can see in the image given above that cost of software development is different, depending on the the region you choose to build your application.

Final Thoughts

We hope this article provides a perfect guide to estimate custom software development cost and will enable you to determine the exact expense of creating custom software for your business. We’ve tried to include all the facets influencing the price of software development in this article; if you need more information or build custom software, you better connect to a professional Custom Software Development Company In the USA to grasp an exact solution.

Go through the article, accumulate information, and utilize them to determine the cost of building your Custom Solution!