How Much Does Software Development Cost in 2025?

Tech advancements in the modern world are happening faster than ever before, so new and established companies alike are prompted to adopt innovative solutions that can improve their operations and efficiency. Software often plays a crucial role in this transformation.  In 2025, more and more businesses prefer to develop custom software to meet their unique needs rather than relying on standard off-the-shelf solutions. 

Some software is created for employees and the company itself. For example, business automation applications, corporate messengers, and project management systems. Other software is required to interact with clients, such as marketplaces, financial, fitness apps, etc.  Whatever the software idea is, AI-powered travel app, e-commerce, fintech software, or the next big social platform, the first question that inevitably comes to mind is how much is this going to cost?

Answering this question is similar to answering the question about how much a car would cost. What car do you need? Do you want a compact sedan or a luxury SUV? In the same way, the price of software development will depend on numerous factors, from the type and complexity of the project to the experience of the development team. In this blog, we will take a detailed look at the cost of software development in 2025, determine the factors that influence the price, and how you can manage your budget wisely.

What is software development and its types?

Software refers to programs that run on PCs, laptops, and smartphones.  Software development is the process of designing, coding, testing, and maintaining those programs. Programs that typically run on PCs and laptops are web and desktop apps, while programs that can run on smartphones are web and mobile apps. Mobile apps can be of two main types, namely native and cross-platform apps. Let's take a closer look at each type.

Web apps can be accessed through any browser on a laptop, PC, or smartphone using the Internet. They are not bound to a particular operating system and do not need to be installed on a user's device. Modern web apps are often designed to be responsive, adapting to different screen sizes and orientations for a seamless user experience. Since web applications are usually hosted on servers, they are easier to maintain and update than native and cross-platform ones.

Desktop apps are software designed for computers and laptops and are installed on the user's device. They are developed for a specific platform: Windows, macOS, or Linux. Unlike web apps, desktop programs have direct access to the computer's hardware and file system. Many desktop apps work offline, though some require an Internet connection for features like cloud syncing or real-time collaboration. Suitable for high-performance games, enterprise software for internal functions, AI-powered apps, and productivity tools (e.g., MS Office suite, image editing software). Developing desktop applications requires different technologies depending on the operating system, performance needs, and desired user experience. 

Native mobile apps are programs developed for a specific mobile operating system, either for iOS or Android, using programming languages and frameworks optimized for that platform. Since native applications are designed for a specific platform, they require separate codebases for iOS and Android, making development time-consuming and costly. However, they offer high performance, full access to device hardware (camera, GPS, contacts), and seamless integration with APIs.

Cross-platform mobile apps cover both iOS and Android operating systems with a single code base, significantly reducing the time and effort spent on development and maintenance compared to native apps. Developers use special frameworks like React Native and Flutter to write the code once and release it for both platforms. These frameworks provide access to a library of user interfaces that copy the appearance and functionality of target platforms.  Cross-platform apps may not always achieve the same level of optimization as fully native apps, but skilled developers can minimize potential performance issues.

What are the Main Stages of Software Development?

As a rule, it all starts with the idea that your company needs either a new product or update of an existing one. However, developing software is not just writing code. Crafting a successful product requires creative thinking, strategic planning, and understanding the target audience. Besides, is it important to determine whether the whole venture is worth it and how to turn the idea into a functional program. For this purpose, a Discovery Phase is usually conducted. It is possible to omit it in some cases, for instance, when you need a simple single-page website or upgrade the existing projects, but in most situations, it is indispensable for any successful project.

Discovery Phase

Any software development usually starts with a Discovery Phase, also called product scoping. It's a preliminary stage where essential information, requirements, and market insights are gathered to lay the foundation for the product. This phase is like planning an architectural design before building a house, ensuring resources are used wisely, and the project aligns with business goals. It helps define precise product features and project goals, ensuring better planning and cost estimates. Market research that is usually conducted within this phase ensures the product meets audience needs and stays competitive. Based on the research conducted during this phase, the design team usually creates wireframes and prototypes that reflect the layout, content placement, and key interactions. Prototyping helps gather feedback and attract investors. The range for discovery phase costs typically falls between $5,000 and $20,000. 

Development and testing

Once the discovery phase is conducted and the design of the future software is ready, it is time to transform it into working software. The development team writes code and implements the features defined during the discovery stages. To ensure your software works perfectly, everything needs to be tested. Early testing helps to quickly identify and fix errors. 

Your future app can be whatever you want it to be: you can choose any features and design you like, provided you have the budget for all of them. But, it is often recommended to start with a minimum viable product (MVP). Such an app includes only the basic features and is ideal to test your idea on the market.  

Launch and post-release support

Once development and testing are complete, it's time to launch your product—whether by hosting online, publishing it on marketplaces, deploying it for internal use, or rolling it out to customers. After launch, collecting user feedback is crucial to identify areas for improvement. Post-release support ensures bug fixes, updates, and enhancements are continuously implemented to keep the software competitive and efficient.

What are the Main Factors that Affect the Cost of Software Development?

In this section, we will discuss the factors that affect the cost of software development.

The Complexity Factor: Simple vs. Sophisticated

The complexity of your project is one of the main cost drivers. A basic website or mobile app with standard features will cost significantly less in contrast to an app with advanced functionality like real-time data processing, AI-powered recommendations, or blockchain security. For instance, a simple restaurant booking app that allows users to reserve a table costs less than one that integrates real-time availability, special requests, and loyalty rewards. While the latter delivers a better user experience, it also requires more time and investment.

Tip: To budget smartly, prioritize essential features and start with an MVP. Consider phased development, i.e., start small and expand based on user feedback.

Choosing the Right Technology Stack

Your choice of technologies and platforms will also impact costs. Development expenses increase if your app needs to run on multiple platforms (iOS, Android, web). For instance, an e-commerce platform could have a web app or a mobile app, or both. Native apps (iOS & Android separately) cost more to develop and offer better performance. Cross-platform apps (React Native, Flutter) are cost-effective but may have limitations. Web apps are affordable for content-based platforms but may lack mobile-native features.

Tip: To budget smartly, decide whether performance or cost-efficiency is your priority. If your app doesn't require complex native features, consider using cross-platform frameworks for mobile development .

Third-Party Integrations

Many apps rely on external services like payment gateways, mapping tools, or AI chatbots, but these integrations aren't free. You might need to purchase API access or invest additional development time to make integrations seamless. For instance, PayPal and Google Maps offer well-documented APIs, making integration smoother. However, integrating with older or proprietary systems can add complexity and cost.

Tip: To budget smartly, research third-party services in advance to estimate costs. Choose popular and well-documented APIs to reduce development time.

UX/UI

A beautifully designed app isn't just about aesthetics. It impacts user engagement and retention. Custom animations, branding elements, and intuitive navigation can enhance usability but also add development time and cost. Think of it like home decor - a standard paint job costs less than a custom interior design with high-end finishes.

Tip: To budget smartly, focus on usability first and add advanced design elements later.

Use design frameworks (Material UI, Bootstrap) to streamline the process.

Development Team: Who's Building Your Software?

There are three main ways to find a development team: hire a full-time team, find freelancers, or outsource.

Hire: You select a team that works directly in your company. This option provides optimal control over the development process and facilitates communication, but it is the most expensive. You will have to face additional costs for equipment and office rent, as well as spend money on recruiting and management.

Freelance: You select specialists for a specific project. This option is suitable if you need flexibility and low cost. But finding the perfect specialist with a suitable portfolio takes a lot of time and effort. In addition, managing several freelancers can be a difficult task.

Outsource: You hire a software development company. Outsourcing agencies are good because you will work with a ready-made team of experienced specialists. In such companies, internal processes are already established, so project management, planning, control, and communication with the team are usually not difficult. Moreover, outsourcing is a profitable option in terms of price-quality ratio.

The cost of work varies greatly depending on the region, and here's why: salaries of specialists, taxes, standard of living, and competition in the market affect the final amount. 

Let's figure out where development is more expensive and where you can find a budget option.

• The USA and Western Europe are the most expensive regions. Developers here earn $80-150 per hour, and a full-fledged application can cost $100,000 or more. High taxes, strict quality standards, and high salaries make development an elite service here.

• Eastern Europe (Ukraine, Poland) offers a good value for money. An hour of work costs $30-80, and an application can cost $25,000-75,000. That's why foreign companies often choose this region.

• India and Southeast Asia are the most budget-friendly options. The developer rate is $15-40 per hour, and the average development costs start from $10,000. However, it is important to consider the time difference, possible language barrier, and level of expertise.

• Latin America (Argentina, Brazil) is the golden mean. Hourly rates here are $25-60, and the average project cost is $20,000-70,000. Proximity to the US, vast talent pool, skilled professionals, and problems in other markets make it one of the most preferable outsourcing destinations nowadays.

Tip: To budget smartly, don't just go for the cheapest option - balance cost and quality. Consider outsourcing for development and hiring local talent for maintenance.

Project Timeline

The longer your project takes, the higher the cost. However, faster isn't always cheaper.  Rushing development can also be expensive, as it often leads to technical debt and rework.

For instance, a startup trying to beat competitors might need to increase the team size to speed up development, leading to higher short-term costs.

Tip: To budget smartly, plan for a realistic timeline that balances cost and quality. Skip unnecessary features that could delay your launch.

Quality Assurance & Security

No one wants to launch a buggy or vulnerable product. Testing is essential, and the complexity of your software will determine how much QA is needed. Additionally, security measures like data encryption, compliance with GDPR or HIPAA, and vulnerability assessments can add to costs.

Tip: To budget smartly, allocate at least 15-20% of your budget for testing. Invest in security from the start to avoid costly fixes later.

Ongoing Costs: Maintenance & Marketing

Many businesses focus on development costs but forget about long-term expenses. Software isn't a one-time purchase, it requires updates, bug fixes, and customer support. For instance, SaaS companies continuously invest in new features, security updates, and marketing to stay competitive.

Tip: To budget smartly, allocate at least 15-20% of your development cost per year for maintenance. Don't overlook the budget for marketing, as without visibility, even the best software won't succeed.

So, How Much Should You Expect to Pay?

Based on the software complexity and size:

• Small projects: $1000 - $30,000. These can be simple projects, from a single-page website to straightforward web or mobile apps like a calculator or timer. The price range may vary depending on the features and customization required, but serves as a good starting point.

• Mid-sized projects: $30,000 - $150,00. These can be more complex projects with more features and integrations, like an online store or a simple booking app. These projects need additional development time and effort, resulting in a higher overall cost.

• Large-scale projects: $150,000+. These can be advanced enterprise-level software with intricate functionalities, AI capabilities, and extensive integrations. Such projects require a significant budget due to their complexity and resource-intensive nature.

Based on the type of the software:

• Web development: In today’s digital world, any business needs at least a basic website for maintaining an online presence. It is possible to create a single-page site just for $1,000, but creating a fully-featured site with a custom-made design and extensive functionality may cost $20,000 or more. The final cost depends on factors like the number of pages, features, and specific requirements.

• Mobile app: Right now our world is not only digital, but also mobile-first, and simply having a website is sometimes not enough as mobile apps can provide superior user experience that help attract and retain customers. It is confirmed by thousands of new ones popping up on Google Play and the Apple Store every month. Creating a basic mobile app can cost around $20,000, but for more complex or commercial apps, it could go higher, up to $50,000 and more. 

• Desktop app: Developing a desktop application varies significantly based on platform (Windows, macOS, Linux), performance needs, and functionality. Prices typically start at $30,000 for a basic app and increase with complexity.

Based on the project type:

• E-commerce software: $20,000  - 250,000. A custom e-commerce platform offers flexibility and scalability but varies significantly in cost based on features, integrations, and ongoing support. A basic app with simple functionalities such as product listing, shopping cart, checkout, and payment gateway can cost about $20,000, advanced functionalities like AI-driven recommendations, multi-vendor capabilities, real-time analytics, integration with other systems like ERP and CRM and custom payment gateways can push costs toward the higher end.

• Healthcare app:  $20,000 - 500,000. While you can expect to pay about 20,000 for a simple appointment scheduling app or medication reminder app, apps for monitoring chronic disease telemedicine,  AI-driven diagnosis, and electronic health records (EHR) will cost much more. Healthcare apps must also comply with strict regulations (HIPAA, GDPR), which increases development costs. 

• Fintech app: $30,000  - 200,000. While a basic app that allow users to send and receive funds, pay bills, and check transaction history can cost about $30,000, expect to pay more for Peer-to-Peer Lending or complex trading platforms. Financial apps also require robust security, compliance (PCI DSS, AML/KYC), and transaction handling.

• Gaming app: $50,000 - $500,000+. Mobile or desktop games vary widely in cost based on complexity. A simple 2D mobile game can start at around $50,000, while a high-quality 3D game with complex animations and multiplayer features can cost more than $500,000.

• Fitness and wellness: $20,000 - 150,000. While you can expect to pay about $20,000 for a basic workout logger, diet tracker, or meditation and relaxation apps, AI-driven coaching apps, AR fitness apps, and comprehensive Health and Wellness Platforms with wearables integration will definitely cost much more. 

• Social network:  $60,000 - 280,000. Building a social media platform includes essential features such as user profiles, content sharing, messaging, and real-time notifications. The cost will rise with advanced features like video streaming, image recognition, and scalability for millions of users.

• Education: $20,000 - 200,000. E-learning apps can range from a basic course catalog to a comprehensive learning management system (LMS). Integrating features like online classes, video content, gamification, and progress tracking can significantly drive up costs.

• On-Demand Service Apps: $25,000 - $200,000. Apps for services like food delivery, ride-sharing, and home services need features like real-time tracking, payment processing, and geolocation. More complex systems for scaling and adding multiple service types will push costs higher.

Final Thoughts

The cost of software development significantly depends on the type and complexity of the software you intend to develop and the development approach you will opt for. However, while software development usually requires significant investments, it is unnecessary to create a sophisticated custom app with complex features and hire a team right away. Usually, a good MVP is enough to start with, while hiring an outsourcing company will help you not waste time and resources on HR processes: searching for each specialist, checking resumes and portfolios, establishing communications between employees, and renting an office. You can also significantly reduce costs by opting for cross-platform mobile apps that work with both iOS and Android operating systems.