Rahul Motwani

September 02, 2022 1107 Views
9 mins read Last Updated September 02, 2022
How Much Does It Cost to Develop a Custom Application

Quick Summary : The article helps you determine the cost of custom application. This article will help you determine the scope of the project and the budget for the development.

Every business has its own unique specialized needs, and every organization has its own special requirements. No off-the-shelf software can meet the needs of any business. The purpose required for excellent software development is the vital growth of the business, a more streamlined environment, and optimal utilization.

Every organization relies on some form of custom app. Digitized processes have supplanted traditional business practices and made data administration easier. When the software isn’t adaptive, the route isn’t any smoother. As a result, astute business owners will always choose custom application development solutions.

Custom-built application for each need, compatible with other relevant systems, and linked to existing software ensures a smooth journey and greater commercial potential. There are two main options available to any expanding or large organization: off-the-shelf solutions and custom software development. The term “off-the-shelf software” refers to software that is ready-to-use and has been designed to fulfill a particular business need.

What is Custom Application Development?

The purpose of custom application development is to create unique software, web & mobile application solutions for customers that are specifically tailored to their needs. The custom app makes work easy and effortless, such as ERP systems and banking desktop applications.

There are four phases in the custom app development process: requirements analysis, coding, testing & deployment. Users get a more personalized experience when the app is customized, which reduces development costs. 

How Do You Estimate The Cost Of Your Custom Application Development In 2022?

Many custom application projects, in our experience, cost between $45,000 and $250,000 to design and construct the application.

It’s a wide range, and it’s probably not very beneficial if you’re ready to set a budget. That’s because software can range from a simple phone calculator to a large-scale enterprise billing system with millions of users. There are no two custom-built applications alike.

We’ve listed the criteria that impact project costs most to help you figure out where you fit on the spectrum. We’ll talk about 6 influencing factors in the later section.

6 Factors That Affect The Cost Of Your Custom Application Development

Size Of The Application

This one is obvious. More screens/pages mean more work to design your software, which means more money to deliver.

Small applications have 10 to 25 screens, medium applications have 25 to 40 screens, and large apps have more than 40 screens. What exactly is a screen? In general, you should count anything the user sees when they first open your app and each different screen behind every button, link, or menu click.

In spite of showing the same information, a customer information screen and a customer information modification screen are two different screens.

Complexity of Custom Application

More time is spent coding and testing complicated logic. You would know if your software does lots of hard analysis, number crunching, or contains a lot of intricacies and permutations that it’s cumbersome and needs extra attention.

Imaginative Design

Designing using your imagination is a lot of fun! This is where you can pick your typefaces, color palettes, and graphics, as well as commission custom illustrations and animations, to add some zing to your app.

When decorating a home or purchasing a new wardrobe, there are excellent options, lavish ones, and a spectrum in between.

To cover the design process, a budget of $7000 to $15,000 is usually recommended, as well as a few iterations of feedback and rework. The project cost will rise if you want additional design time or have a lot of bespoke artwork to be developed.

Integration with Other Systems

There are quite a few unknown variables involved when integrating with third-party software. As for the other system, you do not know how well you will be allowed to get information in and out of it or how many hoops you will have to jump through. Integrations are sometimes simple, and other times they are exceedingly tough. Payment providers like PayPal and Authorize.Net, for example, are fairly simple to interface with.

On the other hand, older or lesser-known systems may represent a problem and raise project costs.

Existing Data Migration

If you need to move data from an existing system to your new application and the amount of data is more than you can manually enter, then you’ll need migration. Migration is simply a set of custom scripts that extracts data from a source system, cleans it up, and then reshapes it for insertion into the new system.

The methods are quite straightforward, but numerous considerations and decisions must be addressed because the two systems will store data differently.

Almost all migration attempts are repeated a couple of times after the software has been finished to ensure that everything was translated correctly and that the data is being used properly. In addition to the time and money required to determine the translation rules, write the scripts, and test the changes, this project will require more resources.

Budget-Friendly Design

It is possible to customize the software to fit a specific budget, just like houses. You might like a butler’s pantry and a full basement. Still, if your budget doesn’t allow for it, these may be lower priority features that you decide to leave out of the project.

Custom software is no exception. A team can take your ideas and turn them into a design that fits your budget. After completing the initial design and cost estimate, you can add or remove certain elements to achieve your goal. When you begin a project, allocating a decent amount to your desired budget is worthwhile.

But what is reasonableness? We all know that $10,000 won’t get you much in the way of a house. Similarly, $10,000 won’t get you very far regarding software development. If your budget is between $45,000 and $250,000, and it matches the size values described above, with adjustments made for the aspects that generally raise the cost, it can likely be designed to fit your budget.

Parameters To Consider While Estimating The Cost Of Custom Application Development

Blog App Cost Caluclators

We are now aware of all the factors associated with development costs. Custom application development comes at a variety of prices. Based on factors such as the type of software, the size of the project, and the number of team members required, here’s an overview of the average cost of bespoke software development.

Project Size 

The size of a project determines the cost. Small apps cost $50-85K on average, medium apps cost $80-200K, while huge apps cost $250K or more.

Custom Application Project Size

Custom software is expensive based on the size of the program, and the larger the software, the more expensive it will be. 

So, here’s a rough estimate based on the size 

  • Minimum Viable Products (MVPs) are usually small pieces of software that cost $25,000 to $55,000 to develop.
  • Medium-sized software can cost from $55,000 to $600,000. A reasonable audience of small and midsize businesses is appropriate for this platform.
  • Companies with larger customer bases may incur a cost of anywhere from $550,000-$1,100,000 for custom software.

Costs by Type

Custom Application Costs by Type

The software comes in many forms today. A CMS, CRM, eCommerce app, SaaS application development, and more could be desired, and they each serve different purposes. So, based on the type, here’s a typical custom application software development cost

  • $50,000 to $200,000 for a SaaS product
  • Web development costs between $10,000 and $50,000.
  • $11,000 to $250,000 for a mobile applications
  • $15,000 to $550,000 eCommerce Solution
  • $10,000 to $65,000 for CMS development
  • $15,000 to $60,000 for CRM software development

If you start with a minimal viable product, you can get custom software produced for under $25,000. It may cost $1,000,000 or more. Depending on the size of your product, how many users you need, and other factors, 

Cost Of Custom App Development By Location

In order to determine the cost of custom application development, you need to know the cost of development services in various countries. It’s possible that you’ll be able to pay your development team anywhere between $15 and $250 per hour, depending on the locations.

Prices for custom software app development services in the United States, UK, and Canada may be excessive. In contrast, outsourcing destinations with strong reputations in the software outsourcing sector, such as Ukraine, offer high-quality services. We looked at the average cost of development services in several nations and discovered the following:


Avg. Cost of Custom Application Software Development
USA $250
Canada $170+
UK $85+
Ukraine $50+


The cost of an entire MVP (approximately 1000 hours of development)

Location Minimum Viable Product Cost
USA $250,000+
Canada $170,000+
Uk $85,000+
Ukraine $50,000+
India $15,000+

Final Thoughts

So, what are the costs involved with custom web application development companies? Unfortunately, there is no single solution to that issue, and as we’ve already stated, there is a slew of variables that can drastically alter the cost. This might be anywhere from tens of thousands of dollars to millions of dollars, which is quite a range if you have no idea what your project will entail.

The cost of software development is determined by its intended use, resulting in a list of required characteristics. For example, depending on its complexity, establishing a CRM system could take up to 1500 hours of work and cost up to $150.000 or more. At 1200 working hours, an e-commerce solution would cost roughly $120.000.

Costs are also influenced by the platform you select, a cloud, desktop, or mobile app. An ordinary iOS or Android app development would cost roughly $65.000 after 900 hours of labor. In contrast, a booking app would cost around $80.000 after 1000 hours of work.

Hopefully, using the preliminary estimates we provided in this post, you can get a good sense of the money you’ll require to complete your project. You may expect cheap rates and excellent quality when working with a competent development team, which is precisely what we provide.

Hire a custom software development team of Groovy web to help you estimate the project’s cost and complete it with little waste and unnecessary spending. 


Written by: Rahul Motwani

Rahul Motwani is an experienced Project Manager with a demonstrated history of working in the information technology and services industry. He started his career as a Backend developer and currently has his hands-on managing projects at Groovy Web. He is a strong program and project management professional with a Bachelor's degree focused on Computer Application.

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