Software development Cost 2026: A detailed guide

“What does an individual software cost?” – this is one of the first and most important questions that entrepreneurs and decision-makers ask themselves. There is no general answer to this, because the costs of [software development](/services/software development) depend on a variety of factors. A lack of understanding of these factors often leads to unrealistic budget planning and failed projects.

In this guide we bring light to the dark. We key the decisive cost factors, give you realistic price margins for 2026 and show you what you need to pay attention to when budgeting.

This article is part of our comprehensive guide: The ultimate guide to software development 2026.

The decisive cost factors

• *Project scope and complexity: *

• **Number of features:**Each single function, from user login to complex data analysis, requires development time.

• Complexity of logic: A simple blog platform is less complex than an ERP system with warehouse management and accounting.

• Integratations with third-party systems: Connection to external APIs (e.g. payment gateways, CRM systems, social media platforms) increases the effort.

• *Technology stack: *

• Yeah. The choice of programming languages, frameworks and databases can affect the costs. Specialized or rare technologies can be more expensive, as experienced developers are more rare.

• *UI/UX design: *

• Yeah. A simple, standardized design is cheaper than a highly individual and animated user interface. An elaborate user experience (UX) research and prototyping also raises costs.

• Team size and location (hour rates):

• Yeah. The hourly rate is the largest individual cost lever. The sentences vary greatly depending on location (Germany vs. Eastern Europe vs. Asia), experience of developers and type of service provider (Freelancer vs. agency).

hourly rates for software developer 2026: An overview

The geographical position of the development team has a massive impact on costs.

Region Average hourly rate (net)

*Germany * 80 € - 150 €

Western Europe (e.g. UK, Netherlands) 70 € - 120 €

Eastern Europe (e.g. Poland, Romania) 40 € - 70 €

Asia (e.g. India, Vietnam) 25 € - 50 €

**A lower hourly rate does not automatically mean lower total costs. Communication barriers, cultural differences and lower code quality can lead to higher project times and thus to unexpectedly high costs.

Examples for software projects 2026

To give you a more concrete idea, here are some rough estimates for different project sizes. These are based on an average German hourly rate of 100 €.

Small project: prototype or MVP (Minimum Viable Product)

• Description: A first, basic version of an application with