Cost of Custom Software Development, Custom Software Development

How to Estimate the Cost of Custom Software Development

Spread the love:

Cost estimation is an important aspect of the planning stage of your project. To help you better prepare for your next custom software development,  This piece is a detailed guide to you understand how to estimate the cost of custom software development.

Let’s get started!

What Is Custom Software Development?

Custom software development can be defined as the development of software according to clients’ requirements that match the business’s specific needs. The development of off-the-shelf software and custom software has quite a few differences. The cost of custom software development is on a higher side compared to off-the-shelf software development.

For every custom software development, you need to have proper budget planning so that you can deal with the unexpected financial crisis unfolding during the project development. In this article, we have demonstrated key factors affecting the overall cost of custom software development. So, without further ado, let’s dive straight into it.

Benefits of custom software development

  • Tailored to satisfy the need of your company
  • Optimized business process
  • Custom software can lead to lowered costs over time
  • Custom software adds credibility to your brand
  • Uniqueness is always there

Factor affecting custom software development cost

Before we understand how to estimate the cost of custom Software Development, let’s find out some of the key factors that can influence basic software development costs. Listed below are the essential factors that can affect the cost of software development.

Size of the software

Cost of Custom Software Development

Half of the total software development cost relies on the size of the software. For example, a mobile application or an eCommerce store will be cheaper compare to an ERP solution used by hospitals and banks. Many other custom software solutions such as CRM, security application, and warehouse management are more expensive than a simple mobile application.

The complexity of the software

The complexity of the software plays a very important role in determining the final cost of your custom software development. The complexity of the software means the features, requirements, and purpose of your software. The cost of custom software development would go higher if you have more complicated factors while developing software.

Design structure

Creative design and UI/UX design are the two main areas of design structure that affect the cost of software development. In creative design, you have to deal with the creative and visual aspects of software development.

On the other hand, UI/UX are the main elements of software design that help you attract users to your platform.

Software development

People who know the basic elements of developing software might find it easy to estimate software development costs. However, for beginners, it is difficult to create scalable and customized software. Software development depends on the design, front-end development, back-end development. The process can take time based on the size and the complexity of the software. 


It requires a significant amount of research and effort to integrate third-party applications with other software. Integrating payment gateways, shipping, and many such features can be expensive based on the application you want to develop.

Migration of existing data

Whether you want to upgrade your application or migrate data from your old application to the new software, you need a custom script that helps you migrate data from the existing application to the new software. However, the calculation of scripts, translations rules, migration space and workload can take time and demand more investment.

Time and budget

Time has a very influential impact when it comes to determining the cost for custom software development. Having said that, in order to complete your project within the given deadline, software development companies have to increase their efforts and involve more developers to accomplish your project. 

Similarly, if you have decided on a fixed budget for your software, then software development companies might ask you to filter out your needs that suits your budget. You can re-think the features you want to add to your software so that your budget remains under control.

Platform and features

A specific platform on which you want to create an application or software plays an integral role when it comes to estimating the final cost of your custom software development. For example, the cost of your software development will be cheaper if you choose any of the platforms from iOS, Android, or web. However, choosing all three will result in a higher cost for your software development.


It is essential to test the software once the development gets completed. 

The development team will look to eliminate errors and find bugs in your software. They will fix the bug issue and test the software on multiple devices. This is another key factor required for any software development, and the cost depends on the total cost of custom software development.

Maintenance and support

At the point when your product is created following quite a while of specialized work and execution of changes, you need to get ready for additional expenses, for example, updates and backing costs. Upkeep and specialized help are essential to keep your product fully operational for quite a while. Normally, the software development company offers maintenance and support at a sensible cost, so you can expect the expense during the development spending plan. 

How to estimate the cost of custom software development for your projects.

Pick the right software

Selecting the right software model is a crucial process as it affects the overall development cost of your software. It is difficult to find the right product that matches your business requirement and it consumes more time and effort. Hence, it is better to choose a boxed product that has features as you would expect.

Hire a reliable software development team

Hiring a suitable software development team is one of the most important factors while developing software for businesses and enterprises. You will have multiple options when it comes to hiring a software development team. You can choose an in-house development team or outsource your project to the leading software development company that will offer dedicated software developers for your project.

MVP features to choose

Features of your product or software will define the impact of your software in the marketplace. This could be one of the main reasons for your product success. Hence, you need to classify features into two segments while developing custom software.

Considering the risk for future development.

If you are developing software, you must consider a futuristic approach to its scalability. Only after that you can make desired plans for the software development. If you do not consider the risks involved in software development, you may lose a huge amount of money.


We hope this article will help you estimate custom software development costs for your projects. Tell us what you think about this article. Do share your views in the comment section below.

Read Next:

Get the scoop from us

Spread the love:
Leave a Reply

Your email address will not be published.

You May Also Like