What does custom software cost? An honest answer with real ranges

"What does custom software cost?" is the question we are asked most often — and also the hardest one to answer with a single number. Custom software is by definition not an off-the-shelf product: the price follows from what the software has to do, which systems it has to talk to and how long it needs to last. Even so, we can offer some grip. Below you will find the ranges that are common, where the costs come from and how you can influence them.

What determines the price?

In practice, five factors account for almost the entire price tag:

• Scope of functionality — the number of screens, roles, workflows and exceptions. Exceptions cost more than people expect: "on Fridays a different rule applies" is half a day of work that is invisible in any demo.
• Integrations with other systems — connecting to an ERP, accounting package or machinery quickly costs more than the screen displaying the data. The older and less documented the other system, the higher this line item.
• Number of users and sensitivity of the data — software used by three colleagues has different requirements than software touching customer or patient records. Authorisation, logging and security are then not an extra but a foundation.
• Migrating existing data — moving data out of a legacy system is rarely a matter of importing it. Cleaning, de-duplicating and verifying is often a project in its own right.
• Platform — a web application, a Windows desktop application, or both plus mobile: every additional platform means additional building and testing.

What ranges are realistic?

The figures below are indicative and reflect what is customary for professionally built custom software. They are meant to convey an order of magnitude, not to serve as a quotation.

Our hourly rate ranges from €80 to €95 excluding VAT, depending on the nature of the work. Analysis, development and specialist work each carry their own rate; a quotation states which rate applies to each part.

• Small tool or integration — one well-defined problem, few users, limited integration. Think in terms of a few weeks of work.
• Business application — a system a department works in daily, with roles, reporting and one or two integrations. Typically a few months of work.
• Platform — multiple user groups, external access, many integrations, high availability requirements. A track of six months or more, often delivered in phases.

More important than the amount is the ratio: in nearly every project the largest share of the budget goes to analysis, testing and handling exceptions — not to writing the "ordinary" code. A quotation that lists only development hours is usually too good to be true.

And after delivery?

Software is not a one-off purchase. Budget structurally for maintenance: security updates, keeping pace with operating system and browser versions, and the changes that emerge from actual use. An annual maintenance fee expressed as a percentage of the build cost is the usual arrangement. Skip that line item and you will still pay it later — all at once.

Custom or off-the-shelf?

An honest answer: if a standard package covers 90% of your process, custom software is rarely the cheapest route. Custom pays off when your way of working is precisely what sets your business apart, when per-user licence costs are becoming prohibitive, or when you have so many separate spreadsheets and manual steps that their hidden cost exceeds the build budget. We would rather do that calculation together up front than afterwards.

How to keep costs down

• Start small and deliver in phases. A working first version after eight weeks yields more insight than a complete design on paper.
• Be strict about scope. Every "while we're at it" wish is budget that is no longer available elsewhere.
• Invest in analysis up front. A misunderstanding resolved during analysis costs an hour; the same misunderstanding after delivery costs weeks.

An indication for your situation

We prefer a reasoned indication over a shot in the dark. In a one-hour conversation we can usually arrive at a range, and after a short analysis at a fixed price per phase. Get in touch — we will work it out for your situation, without obligation.