How to Estimate the Costs of Custom Software Development
Ari Lew | Jun 25, 2025 |
Having the right software can be the difference between standing out and falling behind in our modern world. But if you’re thinking about building your own custom software, there’s one big question you probably have: how much does custom software cost?
The answer isn’t always simple. It’s like asking, “How much does a car cost?” Well, it depends! Do you want a small car to zip around town, or a big truck to carry heavy loads? The same idea applies to software. It all depends on what you need it to do, how you want it to look, and how many people will use it.
At our agency, we’re proud to help businesses bring their digital dreams to life. As an award-winning nearshore software developer, we deliver end-to-end digital solutions that create real business success. As experts, we’re sharing what goes into estimating the cost of custom software in clear, simple language.
What is Custom Software?
Before we dive into dollars and cents, let's make sure we know what "custom software" really means.
Custom software is built just for you. It’s not something you can pick up off a shelf or download in a few clicks. It’s designed around your needs, your workflows, and your goals. Think of it like a tailored suit. While a regular suit might fit okay, a custom one fits perfectly. It looks better, feels better, and helps you perform better.
Whether you’re a startup creating a new app or a big company needing smarter systems, custom software can give you the exact tools you need — no more, no less.
How Much Does Custom Software Cost?
Now, to the big question: how much does custom software cost?
The truth is, there’s no one-size-fits-all answer. Most custom software projects can cost anywhere from $20,000 to over $500,000 or more. Yes, that's a big range! That’s because there are many different pieces that affect the final price tag.
Here’s what usually goes into the cost:
- Project size: Bigger projects with lots of features naturally cost more.
- Design complexity: Simple designs are cheaper. Complex, high-end designs raise the price.
- Number of users: More users can mean more work on security and scaling.
- Integration needs: If your software needs to talk to other programs, that takes extra time.
- Timeline: Faster projects often need more developers, which costs more.
- Team location: Nearshore teams like ours offer a smart balance of cost and quality compared to onshore or offshore teams.
Our firm specializes in finding the right balance — building powerful, smart solutions without breaking your budget.
Key Factors That Shape Your Software Costs
Like putting together a giant puzzle, every piece matters when developing custom software, and each piece affects the final picture. To create an accurate cost estimate, it's important to understand all the different elements that go into the process.
Let’s take a closer look at the key factors that can shape the price of your project:
1. Discovery and Planning Phase
Every great project starts with a great plan. During discovery, developers learn about your goals, your users, and your business rules. This phase may include:
- Workshops
- User story mapping
- Research and wireframing
Typical cost: $5,000–$25,000
Think of this stage like drawing a treasure map. Without a clear path, it’s easy to get lost — and more expensive to fix mistakes later!
2. Design and Prototyping
Good design is more than just pretty screens. It’s about making software that’s easy and fun to use. This phase covers:
- User Interface (UI) Design
- User Experience (UX) Planning
- Interactive Prototypes
Typical cost: $10,000–$50,000
Good design can save money down the road by making development smoother and avoiding expensive rework.
3. Development and Coding
This is where the real building happens. Front-end developers create what users see, and back-end developers build the engines under the hood.
Development costs depend on:
- Features and functions
- Coding languages used
- Platform (web, mobile, desktop)
Typical cost: $30,000–$400,000+
This phase is the heart of your project, and where quality truly matters. Like building a strong house, you want the foundation to be rock solid!
4. Testing and Quality Assurance (QA)
Even the best-built software needs careful testing. QA teams hunt for bugs and problems to make sure everything works perfectly before launch.
Typical cost: 15–25% of development costs
Testing makes sure your users have a smooth experience — and that you avoid costly fixes later.
5. Deployment and Ongoing Support
Once your software is ready, it’s time to launch! But the work doesn’t stop there. You’ll need updates, bug fixes, and sometimes new features.
Ongoing support costs: Monthly retainers, usually $1,000–$10,000+
Good support keeps your software fresh, safe, and running like a dream.
How Our Agency Helps You Estimate Custom Software Costs
We believe that transparency builds trust. We work with you every step of the way to set clear expectations and create a detailed estimate.
When you work with us, here’s what you can expect:
- A full discovery process to understand your needs
- Accurate scoping of features and functionality
- A timeline and budget that fit your goals
- Clear communication and no hidden fees
- Expertise from an award-winning team
We use industry best practices, agile project management, and nearshore advantages to deliver top-notch quality at a better value.
Pro Tip: Start Small and Scale Smart
If you're feeling overwhelmed by the possible costs, don't worry. Many businesses choose to start with a Minimum Viable Product (MVP) — a small, working version of their idea.
An MVP lets you:
- Launch faster
- Test your idea with real users
- Save money by building only the essentials first
At our agency, we can help you craft an MVP that grows with your business, keeping your risks low and your possibilities wide open.
Estimating Costs with Confidence
So, how much does custom software cost? It depends on your goals, your timeline, and your dream for the future.
Our experts make the journey easier, clearer, and even a little exciting. Whether you’re building a bold new product or upgrading your internal systems, we help you make smart choices that lead to real business results.
Custom software is an investment, like planting a tree that will grow strong and fruitful over time. With the right partner, the rewards can be amazing. Ready to bring your vision to life?
Let’s build something great together! Schedule a call with us today to start estimating your custom software development costs. Our friendly experts are ready to help you take the next step toward success.
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Written by Ari Lew
Ari is the Ceo and Co-founder of Asymm. With a passion for product design and media, Ari oversees the UX/UI practice at Asymm and leads client success at the company.