How Much Does Software Development Cost? [Calculator]

Contributors

Boris Shiklo

Chief Technology Officer, ScienceSoft

Andrei Dzimchuk

Senior Solution & Integration Architect, ScienceSoft

Andrei Mikhailau

Software Testing Director, ScienceSoft

Software Development Costs: The Essence

Software development costs for a medium/large application may range from $50,000 to $1,000,000. The total amount mainly depends on the number and complexity of software features and its design patterns. Also, such factors as the type of development (custom, low-code, or platform-based) and the team involved (their roles, seniority, and location) play an important role.

Key Cost Components of Software Development Projects

01.

Requirements engineering, UX design, and project planning

Costs: ~10% of the project cost

During this stage, the project team:

Analyzes the short and long-term company needs, existing processes and software.
Gathers functional requirements and plans software features.
Prepares UX design, which describes how users will interact with the system.
Creates the project roadmap, plans resources, estimates an enterprise software development cost.
Assesses potential project constraints and risks.

To reduce project planning costs:

Make sure that you entrust requirements elicitation to experts. High-quality requirements are a solid foundation for the project’s success, while incomplete, inaccurate, or ambiguous requirements can result in process-blocking debates or even the solution redevelopment.

Ensure sufficient involvement of stakeholders and end users to better understand their needs and expectations. Disregard of their feedback at the earliest stages may result in the need to change requirements in the middle of development, and that would negatively affect the project costs and speed.

Involve a business analyst with real experience in your specific industry. Their knowledge of industry trends, challenges, and recent developments as well as the ability to speak the same language with the stakeholders are a game-changer at this stage.

Boris Shiklo

Chief Technology Officer, ScienceSoft

02.

Architecture and UI design

Costs: ~5-10% of the project costs

In the design phase, the team transforms the requirements specification into a structure that can be implemented using a specific tech stack.

We can divide design into two areas:

Technical design or software architecture design, which describes the software layers and modules, integrations among them, data structures used by different modules, and the required algorithms.
UI design, which describes what the software end users see.

To reduce architecture and UI design costs:

Explore the potential reusability of your legacy software. Often, we see that it is more cost-efficient and less risky to use some parts of our client's legacy enterprise systems than to develop and implement new software modules and integrate them with other enterprise systems.

If you can take a modular approach to software development and rollout, do it. You will be able to launch new functionality faster and cause far less disruption to your everyday processes. It will also be easier to evolve the software consisting of loosely-coupled modules.

Use ready-to-go UI templates unless a unique interface is your competitive advantage.

Andrei Dzimchuk

Senior Solution & Integration Architect, ScienceSoft

03.

Software coding

Costs: back-end development – ~40% of the project costs; front-end development – ~25% of the project costs

Back-end developers write server-side code and APIs and conduct unit tests. Front-end developers turn static user interface mockups provided by UI designers into fully functional GUIs.

To reduce software development costs:

Establish development and delivery automation environments (CI/CD, container orchestration, etc.). A professionally implemented CI/CD process helps integrate, test, and deploy new software functionality within 2-3 hours and reduces development costs by up to 78%.

Consider low-code development. This approach helps make software development process up to 4 times cheaper and 10 times faster. A low-code application platform (LCAP) is currently the most popular low-code development technology. LCAPs (e.g., Microsoft Power Apps, OutSystems, Mendix) provide visual drag-and-drop modules that simplify and streamline building new apps.

Use ready-to-use cloud services for storage, event processing, integration, data management and analytics, ML, monitoring, and more.

Boris Shiklo

Chief Technology Officer, ScienceSoft

04.

Quality assurance

Costs: ~15-20% of the project costs

The team checks if the software meets the specified functional and non-functional requirements and reports on the revealed defects, if any. Although we list QA as a separate stage here, it often runs along with the development, and the most effective QA runs throughout the SDLC: from requirements gathering to software maintenance.

To reduce QA and testing costs:

Consider test automation. If it’s feasible, it can reduce testing cost and time by 20%.

Shift QA left as much as possible. The cost of fixing defects is much higher than the cost of preventing them.

Andrei Mikhailau

Software Testing Director, ScienceSoft

05.

Software deployment

Costs: depend on the services to be provided during the stage

At this stage, the team makes software available for use. This may include installation, customization, user acceptance testing, creating user guidelines, and user training.

06.

Software support and maintenance

Costs: ~15-20% of the original development costs yearly

Once the software is launched, it will require routine maintenance from either a dedicated support team or the original developers. This includes fixing bugs that surface after the software gets delivered to the end users, handling the changing requirements, optimizing the software and its infrastructure for better performance, scalability, cost-efficiency, closing security gaps (if any), and more.

To reduce software costs at the maintenance stage:

Continuously identify the smallest resources needed and terminate the unused capacity.

Track the unused services and terminate them if they’re not needed any more.

Consider your cloud provider’s pricing models: maybe your app satisfies the requirements that would allow using cloud resources at a significant discount. E.g., with Reserved Instances from Azure or AWS, you can have cloud fees reduced by 72-75% if your demand for computing resources is unlikely to decrease within the commitment period.

Boris Shiklo

Chief Technology Officer, ScienceSoft

Key Cost Factors

Based on ScienceSoft’s experience in software development, we have defined the major factors that may influence a project’s cost:

App-related factors

Application type (web, mobile, desktop).
The number of platforms and OS versions supported (for mobile apps).
The number and complexity of application features.
The number of business functions covered (finance, SCM, production, HR, CRM, etc.).
The number of business processes covered (e.g., for sales and marketing: email marketing, lead nurturing, ad campaign planning and analysis, etc.).
Software performance, availability, security, latency, and scalability requirements.
The number of users and user roles.
The complexity of the application logic and architecture (the number of tiers, the number of modules, on-premises/hybrid/cloud-native/cloud-only, etc.).
The number and complexity of integrations with other software (one-way/two-way integration/a shared database; a custom integration solution or a ready-built ESB).
Advanced techs used (machine learning capabilities, AR/VR, etc.).
The need to migrate data from legacy software.
Regulatory compliance requirements (PCI DSS, HIPAA, GDPR, GLBA, etc.).
The uniqueness and complexity of UI design.

Read all

Development-related factors

The team involved (their roles, number and seniority).
The approach to development, e.g., writing custom code from scratch, using low-code development platforms, using ready-built products to cover some parts of functionality.
The sourcing model.
The location of the outsourcing vendor (if any).

Read all

Want to Ensure the Economic Feasibility of Your Software Initiative?

ScienceSoft’s consultants are ready to conduct a feasibility study and provide accurate ROI estimates to help you confidently plan and source development.

Get ROI estimate

Sourcing Models for Software Development Projects

In-house software development

Direct supervision over the development process.

All sourcing and management efforts are on your side.
No quick on-demand access to specific competencies.

Turn to ScienceSoft for help with software and project planning, defining skills gaps, etc.

Turn to us

Outsourcing of dedicated teams

Vetted, pre-built teams for quick project start.
Pay-as-you-use approach.

Project and quality management are partially or completely on your side.

Turn to ScienceSoft if you need a professional software development team.

Turn to us

Outsourced software development

The vendor is responsible for team arrangement, development process, and its results.
Cost-effective due to the vendor’s established processes.

Risk of choosing an inept vendor.

Turn to ScienceSoft if you need a reliable and proactive provider to plan and deliver your software.

Turn to us

Sample Software Development Project Costs

Software complexity

Approximate hours

~500–700 hours

Software with simple features and basic design without any integrations

~700–1,200 hours

Software with more complicated functionality and a highly animated interface, developed in the Agile environment

>1,200 hours

Software with complex architecture, high security requirements, various integrations or implementation of advanced technologies (such as AI), etc.

As a project requires a team consisting of various roles whose hourly rates may differ, we share the ballpark estimations for different types of apps:

~$250,000

An ecommerce portal for the mid-market (platform licenses and content costs are not included).

~$250,000–$400,000

Inventory software for a large enterprise.

~$200,000–$400,000

Operations management software of average complexity.

~$800,000–$4,000,000

Big data solution with AI and ML.

~$300,000

Digital process automation solution.

~$200,000–$400,000

Automated accounting solution of average complexity.

$30,000–$70,000

A native mobile app of medium complexity (field service, booking and ticketing apps, mCommerce).

$150,000+

A mobile banking app / mobile telehealth app.

Want to know how much your software will cost?

Our team will be happy to provide a cost estimate for your case.

Get a cost estimate

*The estimates provided are not ScienceSoft's official pricing/rates for the software development projects. We calculate the cost of each project individually, based on our clients' specific situations and needs.

How Much Will It Cost to Develop Your Software Solution?

Please answer a few questions about your software development needs using our cost calculator. This will help our team provide a tailored service offering and a software development cost estimation much quicker.

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*What EHR/EMR functionality do you want to implement?

Patient records management

Patient treatment planning and monitoring

Medical specialty features (e.g., for pediatrics, cardiology)

AI-supported convenience features (e.g., voice assistance, dictation, handwriting recognition)

Advanced clinical decision support (e.g., clinical pathways, risk stratification)

Healthcare data analytics and reporting

Standardized health data exchange formats (e.g., HL7, FHIR)

Blockchain for data security, integrity, and traceability

*What telehealth or RPM functionality do you need?

Video consultations and instant messaging

Appointment management (scheduling, visit history, pre-visit forms, etc.)

Patient vitals and symptom monitoring

Medication adherence tracking

E-prescribing, refill requests

Patient health data analytics and reporting

Patient engagement tools (e.g., questionnaires, health education resources)

Interoperability with wearables and sensors (e.g., fitness trackers)

*What healthcare data analytics functionality do you want to include?

Clinical intervention and treatment outcome analytics

Analysis of patient-generated health data (vitals, symptoms, telehealth communications)

Financial performance analytics

Operational analytics (e.g., resource utilization, readmission rates, ER wait times)

Financial and operational forecasting based on historical data

AI-supported intelligent forecasting, identification of dependencies between multiple factors

Patient satisfaction and engagement analytics

Billing and claim fraud detection

*What diagnostic functionality do you need?

Medical image analysis

Lab test order entry and management

Quality control and assurance of diagnostic test results

Test results reporting to healthcare professionals via EHR or HIE integration

Management of laboratory supplies, reagents, and equipment

*What clinical trial functionality do you need?

Creation, tracking, and management of clinical trial protocols

Subject recruitment and management, including screening and eligibility assessment

Randomization and blinding for unbiased participant assignment to treatment groups

Patient data input via instant messages

Secure video chats

Chatbots for patient data submission

Participant safety monitoring and adverse event reporting

Trial data analysis and reporting

*What functionality should your medical AR or VR solution have?

Surgical planning, intraoperative surgical guidance

Visualization of medical conditions and treatment options

Medical equipment use training, procedure and ER simulation

Pain distraction therapy, virtual relaxation environments, meditation exercises, CBT

Exercises for physical rehabilitation

*What functionality do you need in your desktop medical device software?

Diagnostic imaging (e.g., X-ray, MRI, CT, ECG, ultrasound)

Pulmonary function testing

Laboratory information management

Point-of-care testing

Infusion pump coordination, ventilator management

*How promptly should changes in source data be reflected in your analytics solution?

*What type(s) of business insurance should your solution support?

General liability insurance

Professional liability (errors & omissions) insurance

Product liability insurance

Commercial property insurance

Commercial auto insurance

Workers’ compensation insurance

Business interruption insurance

*What type of investment analytics should your solution provide?

*How promptly should changes in source data be reflected in your solution?

*What capabilities should your solution provide? Select all that apply.

Work order management

Scheduling and dispatch management

Field worker routing and tracking

Remote inspection, diagnostics, and support

Contract and warranty management

Knowledge management

Field service performance analytics

Mobile applications for field workers

*What capabilities should your order management software provide?

Invoice generation

Payment processing

Dunning and reconciliation

Fulfillment planning and optimization

Order execution management

Warranty, claim, and return management

Order status tracking

*What capabilities should your inventory software provide?

Inventory tracking and real-time updates

Inventory items cataloging

Inventory planning

Inventory procurement

Intracompany inventory transfers

Inventory valuation

Inventory return processing

*What method of inventory counting should your solution support?

Manual counting

Semi-automated counting (using handheld barcode/QR code scanners)

RFID-based counting

Counting using computer vision

Not sure

*What marketing channels do you want to use?

Digital: emails, text messages, push notifications, on-page marketing forms, etc.

Printed: billboards, brochures, flyers, etc.

Events

Ads

*Which components should your in-store security system consist of?

Camera management software

Cloud storage solution for video footage and data

Access control software

Alarm monitoring software

*What features do you need in your price optimization software?

Rule-based price optimization mechanisms

ML-powered price optimization mechanisms

Competitive benchmarking

Price elasticity analysis

Price segmentation

Automated price updating across multiple selling platforms (e.g., webstores, marketplaces)

Promotion optimization

*What kind of software do you need to build?

Enterprise software for telecom companies (OSS/BSS, ERP, analytics)

Telecommunication apps (e.g., VoIP, video conferencing, IoT)

*What telecommunication app do you need to develop?

*What production operations should your software support? Choose all that apply.

Product lifecycle management

Production planning

Production order management

Workforce scheduling

Machinery and equipment monitoring

Facility condition monitoring

Production quality control

Manufacturing analytics

*Would you like to leverage Industry 4.0 techs?

AR for guided order picking

Computer vision for remote quality control

3D printing for additive manufacturing

Please specify the data sources for your software solution.

Internal data sources (e.g., ERP, CRM, SCM).

External data sources (e.g., weather data, competitor prices, market data, social media).

*Should your solution offer complex analytics?

Predictive analytics (e.g., for demand forecasting, predictive maintenance)

Prescriptive analytics (e.g., for process optimization, personalized suggestions, automated actions)

Complex reports (e.g., consolidated reports, industry-specific reports for local regulators)

Basic analytics capabilities only (calculation of historical metrics)

*What learning content types should your software support?

*What type of a client self-service solution would you like to build?

Multi-functional web portal

Web app to enable particular functions (e.g., order tracking, appointment scheduling)

Mobile self-service app

Promo website

Digital marketplace

Virtual store

*What is the aim of your software? What capabilities should it provide?

*Which software version do you need?

MVP only

A fully-featured solution

MVP now, a fully-featured solution later

*Which app type(s) do you need?

Web (available via browser)

Mobile

Desktop (installed on users' PCs)

*How do you plan to use your software?

Internal use (to support business operations or enhance client experience)

Commercial distribution (offering a web software product for a fee)

Both

*Do you have any preferences for the environment?

On-premises

Cloud

Hybrid (cloud and on-premises)

Not sure

Would you require any integrations?

No, I wouldn't

Do you have tech stack preferences?

Here, you can add any details you'd like to include:

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*Full name

*Company name

*Work email

Phone number

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Any Email Phone

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How to Start Getting Value from Your Software Sooner

Go for an MVP (minimal viable product)

At ScienceSoft, we often start with identifying and delivering a basic set of features which meets the key needs of end users (=MVP). Usually, an MVP can be ready in 3–6 months. So, you can start selling the new software or enjoy streamlined business process in a very short time. After an MVP is launched, you can continue evolving it, gradually adding more features and addressing user feedback.

Ensure good user trainings and guidelines

With proper trainings and guidelines, your clients, employees, or partners will onboard quicker, engage with the software more actively, and use the maximum amount of its benefits.

About ScienceSoft

ScienceSoft is a US-headquartered provider of software development services with offices in Europe and the Gulf Cooperation Council. Our pool of 750+ IT professionals includes PMs, BAs, data scientists, security, QA, and DevOps engineers. We build reliable and efficient web, mobile, and desktop applications, B2C/B2B portals, large-scale enterprise applications and SaaS products, BI solutions, big data and IoT applications. The quality of the delivered services and the security of the customers’ data are backed up by ISO 9001 and ISO 27001 certifications.