How to Estimate Custom Software Development Cost

How to Estimate Custom Software Development Cost


What amount does Custom Software Development Cost?

Frankly, programming advancement expenses can go anyplace somewhere in the range of 5K and 100K or Above.

What is this reach, you inquire? Indeed, programming improvement costs fluctuate. It relies upon a ton of elements. Assessing the cost of improving programming can be difficult, even for organizations with extensive experience in the field.

In this post, we’ll make a valiant effort to show the path of “how much does it cost to foster programming”. Likewise, we will give a good guess of the expense that you will cause to foster custom programming.


Why custom programming is more costly than its OTS partners?

A custom program refers to a computer program specifically designed to cater to the unique requirements and specifications of a particular business or organization. Unlike off-the-shelf (OTS) solutions, custom programming involves creating a tailor-made solution from scratch to swiftly address specific needs. On the other hand, OTS solutions are pre-built and companies can readily implement them with minimal or no customization required.

Custom programming is generally more expensive than OTS solutions due to the additional time and resources required to develop it, even though OTS solutions can be cost-effective for many businesses. It takes a considerable amount of time and resources to develop custom programming, which is one of the main reasons it is more costly than OTS solutions.

Custom programming projects often require a team of highly skilled developers, designers, and project managers who possess the necessary skills and knowledge to create a solution tailored to the specific needs of a business, including the initial design and development phase, as well as ongoing maintenance and updates.

It can be quite an expensive endeavour, as these professionals can command high salaries and benefits, and custom programming requires ongoing maintenance and updates, which makes it more costly than OTS solutions. As technology advances, businesses may need to update custom programming solutions to ensure they still meet their needs.

Furthermore, the software may require updates as the business itself evolves to reflect changes in operations or processes, adding to the overall cost of custom programming. Additionally, custom programming can come with additional costs not associated with off-the-shelf solutions, including testing, quality assurance and deployment.

The development team may incur additional costs by taking extra steps to ensure the solution works correctly and meets the business’s requirements. Due to their reduced development and ongoing maintenance costs. OTS solutions are typically less expensive than custom programming solutions. Due to the lower development and ongoing maintenance costs. On the other hand, OTS solutions can be implemented quickly without extensive customization.

The best off-the-shelf solution may not always meet the needs and requirements of a business, as it might not meet all of its unique needs. It is important to take into account the long-term benefits that custom programming can bring to a business, even though it can be more costly than OTS solutions.

By opting for custom programming, businesses can obtain a tailored solution designed to enhance efficiency and productivity, aligning precisely with their specific requirements. Conversely, off-the-shelf (OTS) solutions may not always suit a business optimally, lacking the desired level of flexibility and functionality.

The decision between bespoke programming and an off-the-shelf solution hinges on the distinctive demands of the organization and the available resources to implement the chosen solution.


All in all, what do the product costs consist of then? We should see the breakdown:

  1. Scope of the product
  2. Planning for the product (Platform, UI/UX)
  3. Efforts that the product development group puts in to ensure the conveyance of the product on time
  4. Infrastructure and actual asset costs
  5. Software permit buying and other cloud-related costs
  6. Location of the product development group

Before we begin investigating programming costs, allow in subtleties to investigate the most common way of assessing the expenses.


[1] Scope:

The size of the product accounts for a significant portion of the cost.

Project requirements are directly proportional to the cost of programming. Each deliverable, each limitation, and each presumption will add to the expenses. The more you sort through the degree, the more exact your expense assessment will be.

[2] Design and Development

After determining the scope of the project, the product should be designed and developed. The process begins with wireframing and sitemap creation and gradually progresses to the designers working on visual elements. Then, the engineers take over and begin coding, turning the static website into functional software.

Ultimately, custom programming involves integrating with external systems and migrating existing data. This requires coordination with external frameworks for seamless communication. A considerable amount of time is devoted to research and development (RnD) to thoroughly understand the API, data structures, protocols, client validation, and other relevant aspects.

Whether consolidating data on a single platform or upgrading to entirely new software, custom programming development typically includes some level of data migration.

[3] Testing and Deployment

An appropriate smoothed out and thorough testing process all through the advancement stage is essential. The purpose of testing is to ensure that flaws or broken connections do not enter the manufacturing process and jeopardise item quality.

Now that we know about the cycle, we should find out what variables add to assessing programming improvement costs :

[a] Size of programming:

The size of the programming is the primary factor in determining the cost of software development. It is directly proportional to the cost of the software. The more screens or pages the software has, the more work is required and the higher the cost will be.

A small-sized software typically has fewer than 20 feature pages. A medium-sized application will have between 21-40 pages. Anything over 40 pages is considered a large application.

Therefore, if you are developing a large application with more than 40 screens and additional complex features, the cost will be higher. 

[b] Complexity:

To understand this, let’s take a scenario – Ron wants to develop a mobile application.

He wants his customers to sign up on the application. He can choose a traditional email/password sign-up.

Or he may want a social media sign-up. If he chooses a social media sign-up, he will need to integrate platforms like Facebook, Twitter, LinkedIn, etc.

The more features you add to your software, the more complex it becomes.

As complexity increases, the cost of custom software development also increases.

Other factors that are considered when assessing software development cost include design complexity (custom icons, animations), amount of data analysis, complexity of data migration, integration with third-party tools, and so on.

Additionally, design-related requests, such as custom icons and animations, can also add to the cost.

[c] Time:

Time is additionally a component with regard to programming costs. On the off chance that you have a proper cutoff time as a primary concern, your product advancement organization should grow assets to oblige your time limitations.

Whenever you add more assets, your product improvement costs will also increase.

[d] Budget:

In order to effectively assess the costs of developing a program, it is important to establish a client financial plan. Start by creating a list of all the features and functionalities that are desired in the application. Then, they can categorize them into two groups: “essential” and “nice to have”. Communicate your budget clearly to the software development company at the beginning of the project. Prioritize the inclusion of all essential elements, and if budget permits, incorporate the “nice to have” features. If not, they can be added in a later release


[e] InShoring or Outsourcing:

Creating programming in-house versus outsourcing programming development can greatly impact the cost of software development. Outsourcing software development can decrease expenses by 40%.

This is due to the large cost gap between developed nations and developing nations like India, China, Ukraine, and Mexico. These countries offer cost-effective software outsourcing services.

Therefore, outsourcing software development ensures cost-saving and high-quality product delivery.

India, in particular, is a leading country in software outsourcing and has been gaining popularity as a desirable destination for offshore software development


Read More: Why You Should Choose Custom Software Development?


How Do We Estimate Custom Software Development Costs at Nimap Infotech? 

At Nimap Infotech, we have a clear process for estimating the cost of custom software development projects. We begin with a discovery meeting to discuss project objectives, design, and requirements. Follow-up meetings then break down these high-level requirements into specific features

We then create a business requirement document and our client approves it. Once we agree upon the requirements, we break them down into smaller milestones, with each milestone having a list of features and deadlines.

After a thorough analysis, we provide our client with a detailed cost and time estimate. We ensure timely delivery and quality within the budget we have provided. This approach results in transparency as well, as our clients know what to expect and when, and can test accordingly. 

The cost of custom software development can vary depending on the project’s scope, complexity, and resources required. But with our approach, we ensure that our clients are aware of the costs and timelines upfront, and we stick to them.   


At Nimap Infotech, we classify Custom Software development costs into three categories:


[i] Basic software-

These are small-scale software, prototypes or single-feature standalone software. Developing this type of software will cost around $5k – $10k.


[ii] Moderate software-

Medium-scale web or mobile applications with more than 15 screens that have a few basic features, a MVP or software rebuilding. The software development cost here will be around $10k – $40K.


[iii] Complex software-

Enterprise software with many complicated functionalities, multiple third-party integrations, huge data migration, etc. This will range from 40K to 100K.


*** All costs mentioned are for software development projects only. In-house development or nearshoring will cost significantly more.

Primary concern

Before you focus intently on creating it, be extremely clear on what the prerequisite is. Archive them with the goal that it is simpler for your product improvement firm to comprehend and explain. The expense relies upon the prerequisites, so the progression is the most significant. We likewise have a few hints to assist with diminishing custom programming improvement costs.

Nimap Infotech has been creating custom programming answers for very nearly 10 years now. We have generally never vacillated on our time and quote – we keep a brilliant history in this. In the event that you are pondering custom programming advancement, leave us a message and we’ll hit you up at the earliest.


Also Read: How To Build a Software Development Team Structure



In conclusion, before starting any project, it is crucial to have a clear understanding of the requirements. Documenting them makes it easier for the software development firm to understand and estimate. The cost depends on the requirements, hence the planning stage is the most important. We also have a few tips to help reduce custom software development costs.


At Nimap Infotech, we have been developing custom software solutions for almost 10 years now. We have always been consistent with our time and quote – we have a great track record in this. If you’re thinking of custom software development, leave us a message and we’ll get back to you as soon as possible. 


Additionally, budget is a crucial factor when assessing software development costs. Start by making a list of all the features you need in your application. Now divide them into two groups – “Must-have” and “nice to have”. Contact us at to get a free estimate of your custom software development cost.


It’s important to let the development company know your budget at the start of the project. Include all the necessary features and, if the budget permits, add the “nice to have” ones. If not, add them in the next release.