As an entrepreneur, before you start any software development project, you will need to identify the project’s cost. In the end, it’s all about ROI (Return on Investment) in any business, and by estimating the cost of your custom software project development, you can generate a great ROI. Estimating the cost of a software project and staying within the budget is difficult, even for top software development companies, where the requirements are not clear and there are external factors that play a major role in defining them. Through this blog, we will ease this difficulty for you as decision-maker.
Estimating the Cost of Custom Software Development Based on Size and Type
Here are the two main ways to estimate the cost of custom software development.
Estimating Custom Software Development Costs Based on the Size of the Software
The size of the software is one of the biggest determinants of the cost of the custom software you want to build. As a thumb rule, the larger the software, the higher it will cost you. We have mentioned below a quick cost estimate based on the size of the software.
A small-sized software will cost around $15,000- $55,000 to build. It usually takes around 1-3 months to build such software, and a small skilled software development team is sufficient to build a small size software.
A medium-sized software build for mid-sized businesses can cost you $55,000-$450,000. A mid-sized software development team is required to build a medium-sized software, and it takes around 6-9 months on average to build a mid-sized software.
A large-sized software with multiple integrations intended to be used by millions of users speaking multiple languages and in different locations across the globe can cost anywhere in the pricing range of $550,000-$1,000,000. A large software development team will take around 1-2 years to deliver a large-sized software.
Estimating Custom Software Development Costs Based on the Type of the Software
There is a wide variety of software being developed today. The type of software you want to build has an overbearing effect on the development cost. Here is a brief overview of the software development price according to the type of software built.
- SaaS product: $40,000 to $180,000
- eCommerce software: $12,000 to $530,000
- CMS software development: $8,000 to $52,000
- CRM software development: $15,000 to $53,000
The crux of the matter is that the cost of developing a software depends on the features you want in your software, the size of the software and the level of customization required while developing the software.
Factors Affecting the Cost of Custom Software Development
Custom software development is costly is one of the top software development myths. By knowing the factors that affect your custom software development cost, you can get more clarity on their impact on the development cost of custom software. We will now see the most critical factors that impact the cost of your software development project.
- Size of Software
- Software Development Approach
- Complexity of Software
- Software Design Requirements
- Integration
Hiring Models for Software Development
The cost of custom software development depends greatly on the dedicated team you select to develop your custom software. Generally, the following are the basic team models which are used to hire finest software developers.
- Hire Freelancers for Software Development
- Hire In-house team for Software Development
- Hire a Professional Company to Outsource Software Development
