It's the question everyone asks but nobody wants to answer directly: How much does custom software actually cost?
The honest answer is frustrating: it depends. But that doesn't mean you can't get a realistic sense of what you're looking at before you start talking to developers.
Here's what actually drives custom software pricing — and how to think about budgeting for your project.
The real range
Custom software for small and medium businesses typically falls into a few buckets:
$10,000 – $30,000: Simple internal tools, basic web applications, workflow automation with custom logic. Think a custom dashboard, a specialized calculator, or a simple customer portal.
$30,000 – $75,000: More complex applications with multiple user types, integrations with existing systems, and custom business logic. This is where most SMB projects land.
$75,000 – $150,000: Full-featured applications with advanced functionality, mobile components, or complex data requirements. Usually involves ongoing development phases.
$150,000+: Enterprise-grade systems, platforms serving external customers, or applications requiring extensive security, compliance, or scale considerations.
These ranges assume working with experienced developers or a small agency. Offshore teams may quote lower; big consultancies will quote significantly higher.
What drives the price up
Software pricing isn't arbitrary. Here's what actually moves the needle:
Complexity of business logic. A straightforward CRUD app (create, read, update, delete) is much cheaper than something with complex calculations, conditional workflows, or decision trees. The more "if this, then that" rules your software needs, the more it costs.
Number of integrations. Every system your software needs to talk to — your CRM, accounting software, payment processor, email platform — adds development time. Some integrations are straightforward; others require custom API work.
User types and permissions. An app with one user type is simpler than one with admins, managers, employees, and customers who all see different things and have different capabilities.
Design requirements. A functional internal tool with basic styling costs less than a polished customer-facing application that needs to look great and work perfectly on every device.
Data migration. Moving data from your old system into the new one is often underestimated. Cleaning, mapping, and importing existing data can add significant time.
Compliance and security. If you're handling health data (HIPAA), payment information (PCI), or operating in regulated industries, expect additional requirements that add to the cost.
What drives the price down
Clear scope. The single biggest factor in controlling costs is knowing exactly what you're building before development starts. Vague requirements lead to rework, scope creep, and budget overruns. Scoping your project properly upfront pays for itself.
Phased approach. Building a minimum viable version first, then adding features based on real usage, almost always costs less than trying to build everything at once. You'll also end up with software that actually fits how people work. Start by understanding whether you've actually outgrown your current tools.
Leveraging existing tools. Sometimes you don't need fully custom software. Low-code platforms like Bubble or Retool, or flexible databases like Airtable, can handle a lot of use cases at a fraction of custom development cost. A good partner will tell you when buying makes more sense than building.
Realistic timelines. Rush jobs cost more. If you can give developers reasonable timelines, you'll pay less than if everything is an emergency.
The hidden costs people forget
The sticker price isn't the whole picture. Budget for:
Maintenance and updates. Software needs ongoing care — security patches, bug fixes, updates when browsers or operating systems change. Plan for 15-20% of initial development cost annually.
Hosting and infrastructure. Your software has to run somewhere. Cloud hosting costs vary based on usage, but budget $50-500/month for most SMB applications.
Training and adoption. The best software is worthless if nobody uses it. Factor in time to train your team and refine the tool based on their feedback.
Future enhancements. Once you start using custom software, you'll have ideas for improvements. That's a good thing — but budget for it.
How to get an accurate estimate
Before you talk to developers, do this:
- Document what the software needs to do — not how it should work, but what outcomes you need
- List every system it needs to connect to
- Identify who will use it and what they need to do
- Gather examples of existing software that does something similar
- Be honest about your budget range
A good development partner will give you a realistic estimate based on this information — and will tell you if your budget doesn't match your requirements. That conversation matters.
Red flags in pricing
Watch out for:
- Estimates without questions. If someone quotes you without understanding your business, they're guessing.
- Hourly-only pricing with no cap. You deserve to know the likely total, not just the hourly rate.
- Prices that seem too good. Quality development costs what it costs. Extremely low quotes usually mean inexperienced developers, offshore teams with communication challenges, or scope that will balloon later.
- No discussion of ongoing costs. Anyone who doesn't mention maintenance and hosting is setting you up for surprises.
How we approach pricing
At DGK Technologies, we start every custom software project with a scoping conversation. We want to understand what you're trying to accomplish, what you've already tried, and what success looks like.
From there, we give you a fixed-price proposal for a defined scope — not an open-ended hourly engagement. You'll know what you're getting and what it costs before we write a line of code.
If custom software isn't the right answer, we'll tell you. Sometimes the right move is an off-the-shelf tool with some customization, or a phased approach that spreads the investment over time.