Software development Cost: What costs individual...

[Software development](/services/software development) Cost: What does individual software really cost?

Software development Cost: What does individual software really cost?

The decision for an individual software solution is a strategic step that can significantly advance your company. One of the first and most important questions that arises is: What does the development of an individual software cost? This article gives you a detailed insight into the cost factors, price models and the actual value of a customized software.

The most important cost factors in software development

The costs for individual software are not a flat-rate amount, but are composed of various factors. The more complex and extensive the project, the higher the costs are usually.

Cost factor Description Influence on costs

**Project scope & Complexity * * Number of functions, complexity of business logic, number of platforms (web, mobile, desktop) Very high

**Technology stack * * Used programming languages, frameworks and databases Medium

Design (UI/UX) Cost of designing the user interface and user experience Medium

**Integrations * * Connection to existing systems (ERP, CRM, etc.) High

**Team Size & Experience * * Number and seniority of the involved developers, designers and project managers Very high

*Project management method * Agile methods (e.g. Scrum) vs. classic waterfall model Gering

Price models at a glance: fixed price, time & Material and containers

Software agencies usually offer different price models that are suitable for different project types.

Fixed Price:

Description: A fixed price for a clearly defined performance.

• Advantages: Planability and Budget Security.

• Supplements: Low flexibility in changes, high initial planning effort.

Suitable for: Small, clearly defined projects.

Time Material (T&M):

**Description:**Description after actual expenditure (hour or daily rates).

• Advantages: High flexibility, agile development possible.

• **Supplements:**Slower budget security.

Proven for: Complex, agile projects with unclear requirements.

Retainer:

Description: A monthly lump sum for a fixed hourly rate quota.

• Advantages: Long term cooperation, continuous development.

**Requires a close partnership and trust.

• ** Suitable for:** Running maintenance, support and further development.

Concrete cost examples: What costs what software?

The following examples serve as a rough orientation. The actual costs may vary greatly depending on the factors mentioned above.

Project type Description Estimated costs

**Simplified web app * * For example, an internal tool for data acquisition with few functions. 15