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Modern software makes it easier to promote your business, reach a larger audience, and gain a competitive edge. No matter how you market yourself, or the tools you choose, it's worth creating an app. The question is, how much will it cost?In this guide, we’ll look at several elements to consider when calculating the final cost of software development. Software isn't just code, it requires creative thinking, strategic planning, and a deep understanding of your target audience. Let’s see how to bring this to life.
Software is a general term used to describe programs on PCs, laptops, and smartphones. This includes mobile, desktop, and web apps.
Software development includes the designing, programming, and testing phases a company faces when creating and maintaining apps. Usually, it starts with your company needing an upgrade or a completely new product. At this stage, you need to think about how to transform the concept into a functional and usable software product.
Some apps are created for the employees and the company itself. For example, business automation apps, team communication platforms, project management systems, etc. Other apps are created for interacting with customers, such as marketplaces, financial apps, fitness apps, etc.
In general, we can divide software into 4 categories: native mobile software, cross-platform apps, desktop programs, and web apps.
Native mobile applications are created for a specific mobile operating system using platform-specific frameworks and programming languages. They take advantage of the OS they're built for and work efficiently with APIs.
The cost of software development is higher if the product is built to be compatible with several operating systems.
Cross-platform development is a great way to cover both mobile operating systems at the same time, as these apps are based on a single code base. Developers use specific frameworks and technologies to write code once and deploy it to both iOS and Android.
React Native and other cross-platform frameworks simplify the development process and provide UI libraries that copy the look and feel of target platforms. You can read how we designed a crypto wallet using this method in our portfolio.
Web apps aren't tied to a specific operating system and so must be responsive and easily adaptable for different devices, screen sizes, and orientations. To create web applications, programmers use a specific technology stack, including CSS, HTML, and JavaScript.
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🌟Our experience
We developed the telehealth platform My Therapy Assistant to connect therapists and clients. It provides scheduling, video consultations, and tracking of goals progress.
The project includes role-based UI versions for clients and therapists, along with a custom calendar system for booking appointments. We utilized React Native for cross-platform compatibility and integrated the product with the HealthCode platform.
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This is software designed to run on desktops or laptops. It’s installed and executed on the user’s operating system. Desktop apps are specific to a particular platform: macOS, Windows, or Linux.
Some desktop apps can work offline without a permanent Internet connection, while others have online features that require a connection to the Internet.
Check out how we created a desktop app for our client: a stun gun data analysis app.
App development price varies depending on:
Each company has its methodology, level of expertise, and rating. Therefore, it’s hard to give the average costs of software development. As each app has individual requirements and serves a specific goal, it’s difficult to say for sure “your app will cost this much” without research and planning. We'll still do our best to look at some approximate estimates below.
Let’s discuss the main factors that affect the cost of software development in more detail.
The project complexity varies based on the features the customer chooses to include and the user interface design. This requires planning. If you want to create a custom app with complex user interactions and advanced animations, developing your app will be more complicated.
The complexity also increases when your software needs to interact with external systems, such as payment gateways, social media platforms, and third-party Application Programming Interfaces (APIs).
To create an app that covers several platforms at the same time, it’s better to opt for cross-platform development. Otherwise, the cost of software development and timeframes increase. This is due to the need for platform-specific coding, optimization, and testing for separate apps.
There are three ways to find a software development team: employ an in-house team, hire freelancers, or turn to an outsourcing company.
In-house. Hiring a team that works for your company. This option provides better control over the development process and makes collaboration easier, but is also the most expensive. You’ll face extra overhead equipment and office rent costs, as well as the expense of recruiting and HR management.
Freelance. Hiring specialists to do a particular project. This can be good for flexibility and a low-cost option. However, finding the perfect specialist with the right portfolio takes time and effort. Managing several freelancers can also be a challenge.
Outsourcing. Partnering with a software development company. Outsourcing companies give you the opportunity to work with a ready-made team of talented and experienced professionals. These software development companies have robust project management processes in place, so they can handle project planning, coordination, and communication effectively. Outsourcing is also a cost-effective option.
If you think outsourcing is the right solution to develop software for you, learn more about Purrweb’s mobile app development services.
The industry you plan to operate in will impact your software development price. Certain sectors and markets are bound by stringent regulations, for example, HIPAA for healthcare or GDPR for apps that work with European Union residents. In order to comply with these regulations, developers must navigate through legal requirements, implement specific security measures, and sometimes undergo extra testing. This adds complexity and makes the development process more expensive.
Consider where your development team is located and what projects they've had under their belt. These factors play a key role in determining average software development costs because salaries for developers vary across regions and countries. For example, developers in Eastern Europe expect lower salaries compared to those in the United States or the United Kingdom. Statistics reveal that the average annual salary for a software developer in the United States is around $132,000, while in Poland, it averages approximately $49,000.
On top of that, the experience level of the software development team impacts the costs. Senior developers with diverse and versatile portfolios ask for a higher hourly rate that reflects their proficiency and skill set. Junior developers may be more cost advantageous but will require more supervision from your side.
Software development projects often involve payment models that determine how the work is priced and charged. Let’s focus on the 3 common payment models: fixed-price, time and materials, and the hybrid model.
You walk to a store and buy a piece of clothing. The price tag is set, so you just pay what it says and leave. With no negotiations, discounts, or changes. This is a fixed-price model for software development costs.
In this approach, a development team defines a project’s scope, requirements, software complexity, and deliverables before work begins. Then, they calculate the cost of the software development project upfront, providing clarity and predictability.
For example, if you want to develop a basic mobile application with specific features, you might negotiate a fixed price with a development team based on the agreed-upon requirements. However, any changes or additional features requested during the software project might lead to extra costs or timeline extensions.
For whom: This model is suitable for projects when you have defined scopes and don’t expect many changes throughout the software development process.
The time and materials model, or T&M in short, offers more flexibility for software development. Imagine you hire a catering company for a party and receive an estimation that includes the costs of groceries (materials) and an hourly rate for a chef to prepare the food (time).
With this approach, you pay for resources used and the time spent during the development process.
At Purrweb, we use a T&M model and bill clients for the hours worked and the materials utilized. This model allows us to provide more flexibility and accommodate changes and evolving requirements as they come up. There's one potential downside of this model: the final software development costs can be unclear, especially if your scope expands significantly. We recommend discussing your budget with the development team and setting an upper limit on the budget.
For whom: If your project scope isn't defined at the start and you feel like things can change.
The hybrid payment model combines elements of both fixed pricing and time and materials. It’s a balance between flexibility and predictability.
In this model, a development team prices the core features or initial phases using the fixed price approach, while additional features or subsequent phases are charged based on time and materials.
For instance, your project team can use the fixed-price model for the basic platform features and then employ the time and materials model for additional features or ongoing support.
This approach provides a balance between a clear budget for the primary project phase and flexibility in the following software development stages.
For whom: If your project has defined basic requirements, but you expect things to change later on in the software development.
Let’s talk numbers. Below, we’ve gathered several apps with different functionality and design that the Purrweb team has evaluated. Let’s talk about the average costs to develop an app.
Here is a short summary of the information below for busy readers.
Wellness and health management apps allow to use modern methods of care, track symptoms, and improve the interpretation of physical and mental health analyses. For example, you can find medication delivery apps, apps for communicating with a doctor, and fitness trackers in this category.
Common app features: differ significantly from app to app. Usually, there is a smart search, a user profile, a key metrics overview, a dashboard, and push notifications. Also, don’t forget that you might have to build a HIPAA compliant app, which means additional costs have to be accounted for.
Costs: A simple app with basic features will cost you approximately $25,000. The cost of an average complexity app will be around $45,000.
Apps like Tinder are popular: the size of the dating services market is expected to grow from $5.64 billion in 2025 to around $11.27 billion by 2034. These apps help users chat with people and find partners. There are three kinds of dating apps: with location-based, profile-based, or niche-based search options.
Common app features: a secure registration form, user profiles, geolocation, partner search algorithm, audio/video chatting, and in-app purchases.
Costs: an MVP for dating will cost you about $55,000, and a full-fledged mobile app will be close to $70,000.
Financial technology allows us to access and manage finances digitally. There are several types of fintech software: banking apps, payment processing programs, insurance, investment & personal finance management apps, and exchanges.
Common app features: linking a card, a payment gateway, basic financial transactions, advanced data encryption, security protocols, and custom notifications.
Costs: the average costs of software development in fintech start from approximately $59,000. But banking app development cost can fluctuate a lot, so do research, if you want to complete your project.
The marketplace app is a platform where buyers and sellers can connect and trade goods or services. The complexity of these projects varies depending on desired features.
Common app features: user registration and authentication, product listings, payment processing, and rating systems.
Costs: on average, the estimated software development cost for a marketplace app ranges from $80,000 to $100,000 for a basic version with essential features. More sophisticated marketplaces can cost $120,000 or more.
Social media apps facilitate communication, networking, and content sharing among users. Factors such as platform compatibility (iOS, Android, web), UX/UI design requirements, and backend infrastructure can increase or reduce software development costs, depending on your strategy.
Common app features: user registration and onboarding, newsfeed, photo and video sharing, content creation functionality, messaging functionality, and push notifications.
Costs: an average social media app can cost from $56,000 for a basic version with core functionalities. However, more comprehensive platforms with advanced features like real-time messaging, live-streaming, and augmented reality filters can exceed $90,000 in development costs.
IoT (Internet of Things) applications enable communication and data exchange between connected devices, sensors, and systems. These platforms require complex integrations with hardware components, cloud services, and data analytics services, which subsequently impact software development prices.
Common app features: user profiles, onboarding, dashboard, push notifications, and security functionality.
Costs: an average price for an IoT application can range from $47,000 to $70,000 for a basic version with fundamental functionalities. The final costs widely depend on factors like device compatibility, data security, scalability, and interoperability with existing systems.
Not all the software development cost factors we discussed above are unavoidable. Meaning, it’s not essential to create a fancy custom app with advanced functionality and hire an in-house team to do this. Usually, a good MVP would suffice. Let’s see how you could cut costs and boost efficiency.
Any company that provides mobile app development services works with both operating systems. It's possible to design two apps for iOS and Android systems separately. Would you want to double the budget to get native apps? If not, cross-platform development is a solution.
At Purrweb, we use the React Native framework to build compatible native-like applications. The large library of pre-built components and plugins available in the React Native ecosystem speeds up the development. It’s a perfect solution to minimize the software development cost.
We have 10+ years of experience in developing apps for businesses, and the idea we always come back to is “start with an MVP”. The main pros of developing a minimum viable product include:
There are more advantages to building an MVP first and turning it into a fully-featured product after testing in the market.
One more way to reduce the software development cost is to hire an outsourcing company. This way you don’t spend time and resources searching for each specialist individually, checking CVs and portfolios, establishing communication between employees, or renting an office.
While there may be challenges, such as cultural differences, outsourcing allows you to choose a well-consolidated team that has already streamlined all the internal processes. Communication through the project manager and analysts will be convenient both for the team and for you. Read more about outsourcing for startups.
To help you estimate development costs and show how a budget can vary depending on a company size, we calculated approximate project costs for a simple mobile app and chose the best payment model. Dive in and make informed decisions!
Average software development cost: $13,000 to $75,000
Best payment model to choose: time & materials
Startups often operate with limited capital but aim to bring innovative ideas to market. That’s why they require cost-effective but flexible solutions. The custom software development costs can range from $13,000 to $75,000 for a simple mobile app.
Most startups start with an MVP, a minimum viable product, and a limited budget. The T&M model provides an opportunity to set financial limitations for the development phase but stay flexible on adjustments. If you discover new features you want to add, after working with user feedback, the software developers will have the capacity and resources to accommodate your requests and ensure the timely launch of the product.
Average software development cost: $35,000 to $136,000
Best payment model to choose: hybrid
Small and mid-sized companies often need more complex and feature-rich software solutions than startups. The cost can vary from $35,000 to $136,000 for a simple mobile app, depending on functionality, design, and other requirements.
As small and mid-sized companies are often interested in growth and scaling up, for these projects, the hybrid model is a great choice. The basic fixed price for the core functionalities or the initial project phases ensures a clear budget and a defined scope, while the T&M approach caters to any adjustments or ongoing maintenance costs. The hybrid model provides a balance between budget certainty and flexibility, and creates room for adaptations during custom software development.
Average software development cost: $56,000 to $185,000
Best payment model to choose: time & materials
Enterprise software includes complex integrations, high-security standards, and a need for scalability. That’s why the software development cost estimation is always high. For a simple mobile app of this level, you would pay from $56,000 to $185,000.
The time and materials model is a great help for enterprise development. On one hand, you'll be flexible with ongoing changes in project scope and requirements. On the other hand, your developers will have enough resources to address the evolving requirements in the industry. For example, new data security standards.
The costs of software development projects depend on many factors: the payment model you choose, complexity level, functionality, and location of developers. We could go on and on, describing how different prices can be. Instead, we want to provide you with some clarity — here is the development cost for a mobile app built by our dedicated team.
🚨 Disclaimer: The estimation of software development services is provided by Purrweb and varies from team to team. We don’t guarantee that other companies provide the same quotes and timeframes for similar projects.
At Purrweb, we provide mobile and web development services with user-centered and simple UI/UX to elevate interactions with our software. We help startups and companies build an MVP and test a business idea with real-world customers.
Want to move forward with your idea and consult our developers? and we’ll get back to you soon
We have extensive experience in developing mobile apps, websites and portals, native apps, and PWAs. Our dedicated team can accommodate different budgets and make sure custom software development costs meet your expectations. Check out our portfolio with the latest cases.
We prefer to use the time & materials payment model to provide flexibility for MVPs. This way, our clients can adjust their project ideas based on initial release and feedback collection.
To help startup owners estimate software development costs and avoid surprises, we provide an idea, but leave room for additional testing or a change of features and color scheme, in case you need it.
The software development cost varies from case to case, and there’s no one-size-fits-all price. In most cases, you’ll need an individual session with an analyst to draft a project roadmap and make cost estimates. Good news: this is free at Purrweb!
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