What Are The Factors Affecting Software Development Cost

Software development is one of the vital aspects of modern-day companies. Many organizations consider applications as their inseparable element. While building an app can be challenging, estimating its cost isn’t as easy as you might have imagined, especially if you are working with people of limited experience. Therefore, as a business owner or a manager, it is your responsibility to know the essential factors that affect software development cost. In this article, we have covered the fundamental aspects which will help you determine the development budget wisely, so you don’t run out of Benjamins halfway through.

What are the Essential Factors Affecting Software Development Cost?

Average Duration of Software Development

The most favored types of software are mobile and web applications. In terms of complexity level, we can categorize them into three parts. The basic apps are created pretty fast. Yet, their functionality is pretty simple. On average, they require 500-700 hours to be built. Medium complexity apps have more complex features. It takes around 700-1100 hours to make them. Complex applications, as you may have guessed, are the most challenging ones to develop. It is because of security issues, numerous integrations, architecture, etc. The best software development companies spend over 1100 hours on average, to create such an app. Now you know the average duration needed to build an app. Note that this is also a decisive factor when you calculate the software development cost. You may easily multiply the rate of your employees by the number of hours and calculate the amount of money you will be paying to your workers.

Cost Factors of Software Development

There are three leading platforms that software is built today. They are IOS, Android, and web. The first two are mobile platforms. The software development cost differs depending on the platform you choose. So, the first thing is to ensure what platform you need. Do you need an IOS or Android app? Or maybe you just need a web application. Make sure you are firm with your decision. Also, there are some other nuances you should take into consideration. For instance, if you already have an Android app, it is impossible to convert it straight into an IOS one, or vice versa. It is because different programming languages are needed for different platforms.

Additionally, their software development kits are different. Therefore, if you want your app to work on multiple platforms, get ready to open up your wallet. You will have to spend a lot of money. 

UI and UX Design

software development cost

Design is another critical factor affecting the average cost of software development. Obviously, UI and UX design plays a significant role in attracting the attention of people. Through this, the software is able to engage with customers. Depending on the complexity level of the app, the design building may take a long time. Admittedly, the type of app is an impactful aspect, as well.

Development Factor

You need to be aware that two types of web development are available. They are frontend and backend development. The frontend is basically the part of the software that clients interact with. On the other hand, the backend is the server part. It is like the brain of the app. For instance, when a user clicks on the sign-in button, the software connects to the server first. There it ensures that the data entered is correct. That is where the importance of backend is. 

In general, it is essential to know that Android apps usually take 25-30% more time to build compared to IOS ones. It is because multiple devices are operating on Android. This factor explicitly affects software development cost


Testing is another hugely significant factor that impacts the average cost of software development. Once the app is ready, you have to ensure that it works properly. For this, testing must be implemented. Note that the expenditure related to the testing of your app depends on the complexity of the software. So, check out this tip to choose your software development company, too. 

Other Decisive Factors

Apart from the factors that are directly related to the app, some other critical factors exist that affect the software development cost. They are the seniority level of developers, type of developers, and the region they are from.

Seniority Level of Developers

We divide developers into three parts in terms of their experience. They are junior developers, mid-level developers, and senior developers. Junior developers are usually new to the industry. They have experience of up to one year. Such developers typically get help from more experienced developers during their work. Mid-level developers ideally are 1-3 years experienced. They have worked enough to give you an app you wish. Still, very complicated apps may be challenging for them to create from scratch. Senior developers have experience of over five years. They have developed many kinds of software so that they can assist you with any request. They will also inform you regarding the advantages and disadvantages of the platforms, languages, etc. Note that the more experienced a developer is, the more the software development cost can get. 

Types of Developers

Software development cost

We classify the types of developers into three parts, too. They are freelancers, in-house developers, and outsourced professionals. Freelance developers are usually the cheapest way to go. It is because they are the least reliable workers, too. You have almost no chance to check their work. Also, nobody will guarantee you if you will be satisfied with their work. In general, we do not recommend such developers.

In-house hiring is another option. It has some advantages to it. For example, they will be in your office, so you will see the progress anytime you want. Nevertheless, their disadvantages outweigh their upsides in terms of software development cost. First, you will have to spare space for them in your office. Second, you will have to incur additional costs, such as salary, taxes, etc.; all of these expenses may cost you a lot in the end. So, consider the expenditure coming with this choice. 

Outsourcing is the last and for us the best option. You can outsource software development team from anywhere in the world who have specialized in development. Depending on the region, you can hire a very skilled team which would cost you very little money. The only negative side can be a time zone if they happen to be on the other side of the planet.


The region is the final important factor you should pay attention to. Note that you can outsource your work to senior developers in eastern countries. That work would cost you more for mid-level developers in the west. The prices differ based on the cities, too. For instance, a Portland based top software company costs less than its counterparts in LA. You can get familiar with approximate per hour costs for continental regions in the table below. 

 Region Junior Developer Mid-level Developer Senior Developer


 $20-30 $25-35 $25-40
 Eastern Europe $25-35  $30-40 $40-50
 Western Europe $35-40 $45-55 $50-65
 South America $25-35 $35-45 $35-50
 North America $95-100 $120-128 $140-147



The importance of software development is increasing day by day. Seeing this, the suppliers reply to the demand with a rising software development cost. For your business, you need to ensure you get a high-quality product at a reasonable price. Keep in mind that the more complicated an app is, the more costly it will be. So, ask your developers not to build it more complicated than you need. If you found this article helpful, make sure you check out other related articles, too. 

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