How Much Does it Cost to Develop a Software Application?

If you are planning to build a software application, one of the first questions you will want an answer to is how much does it costs to develop a software application. It is a fair question, but that doesn’t have a fixed answer.

The ultimate cost of developing the app may be low, high, or something in between. It all comes down to the software application you build, what you want, how detailed it needs to be, and who you hire to create it.

However, there is a big picture of the financial side you need to look at, whether it is to launch your first mobile app or plan to go digital. There are so many factors to consider that impact the final cost, which we will learn about in this blog.

In this blog, we will also learn about the total software application development costs, what affects the price of development, how to plan your budget more effectively, and many more things you may want to know about.

You are in the right place if you are looking for a guide to avoid spending more than required on the development or underestimating your needs.

Why Understanding Software Application Development Costs Matters

When you decide to build a software application, knowing the cost helps you make the right and smart choice. You need to understand and know where you are spending your money and why it requires you to invest that much, along with learning the final price. It allows you to do the following:

• Plan your budget properly
• Avoid surprise expenses
• Choose the right features for your app

If you don’t consider the costs before the development process starts, the costs may increase, or you may get a project that is only half completed. You can understand what is important for your app and what you can add later by having a clarity of different parts of the development process, like design, coding, testing, and maintenance.

Good planning also helps you communicate more clearly with your development team. When you know what each step involves, you can ask better questions, make better decisions, and stay in control of your project from start to finish.

Overview of Total Software Application Development Costs

The total cost to develop a software application in the UK can be between £10,000 to over £250,000. The cost can depend on many factors. It can be the feature you choose, the team you hire, or any other factor that we will explore further. There is no fixed price, but you can get an idea by looking at the following cost ranges.

Here is the total cost based on the type of application:

• Basic app: £10,000 and £25,000
• Advanced or custom app (delivery apps, enterprise systems, or apps with advanced features): ₹10,00,000 to ₹25,00,000 or more

The price usually includes various stages:

• Planning and research
• Design and user experience
• Development (coding)
• Testing and bug fixing
• Launch and ongoing support

If your app comes on the complex side, it will take more time to build and cost. It is also a good idea to keep 10–20% extra in your budget. It will become useful when you need more updates, changes, or small problems that can occur during development.

Cost Breakdown by Type of Software

Every app is built in a different way. Some are quick and simple, while others are big projects that can take months. Below, we will include the cost based on the type of software.

1. Basic Apps

• Cost: £5,000 – £15,000
• Timeframe: Around 3 to 6 weeks

These apps are simple apps with essential features. They are built to offer only one purpose, such as showing information, collecting basic information, or helping users complete a single task.

The design and backend system of these apps are not complex. These apps can include a few screens, a simple design, and basic functions.

They are great for businesses like startups or small ones who want to get their app working quickly and also don’t want to invest too much upfront.

2. Mid-Range Apps

• Cost: £15,000 – £50,000
• Timeframe: Around 2 to 4 months

These apps have more features than the basic ones and are built for wider use. They often include features like user accounts, data storage, a dashboard, admin panels, in-app payments, and more.

The design of these apps is more enhanced. These apps are best for businesses that are growing, are service-based, or are funded startups.

3. High-End Apps

• Cost: £50,000 – £150,000 or more
• Timeframe: 4 to 9 months or longer

These apps have almost all the features your business may want to include. This makes the development complex, which means more cost.

However, they can handle large user bases, large volumes of data, live functionality, or multi-platform support. These types of applications require more time, planning, and a larger team.

These apps are used by large companies, tech startups, and platforms that plan to scale quickly or support more users compared to the apps mentioned above.

Cost Estimation by Development Phase

The development of a software application goes through various stages, and each step incurs different costs. Here are the stages involved and their costs.

1. Discovery & Planning

Cost: £1,000 and £5,000

This is the beginning of the development process. In this phase, you and the development team plan together to decide what the app will offer, the audience you are building it for, and how it should work. This can include:

• Competitor Research
• User Personas
• Feature Lists
• Technical Requirements

2. UI/UX Design

Cost: £2,000 and £10,000

After the planning stage, designers come into the process. They work on how your app’s design will be. The design process includes wireframes, layouts, colours, fonts, buttons, and user journeys. The aim is to make an app that is easy to use and equally appealing visually.

3. Development (Frontend and Backend)

Cost: £10,000 to £100,000+

Most of your investment will go into the frontend and backend development process will take the designs and build the app, everything from the buttons users click on to the data stored in the background.

Frontend development focuses on what your users see and interact with, while backend development manages the data, security, and logic behind the scenes.

4. Testing & Quality Assurance (QA)

Cost: £2,000 and £10,000

Here comes the software testing phase. It occurs once your application is developed. This is the phase where the testers ensure your software application is working properly.

They look for bugs, if any, check that the features are working as expected, and make sure the apps run smoothly on different devices and screen sizes.

5. Launch & Deployment

Cost: £500 and £3,000

The app needs to be launched when it is ready. This may include the following:

• Putting it on the app stores, like Apple’s App Store or Google Play
• Setting up hosting or servers, if required
• Handling any final changes

You may also need help with setting up analytics, crash reporting, or getting feedback from users.

6. Ongoing Support & Maintenance

Cost: £1,000 to £10,000+ per year

Don’t think that your work ends after it goes live. You will need to update it regularly to ensure you fix bugs, improve performance, and keep up with new versions of operating systems.

You will also want to add new features. Ongoing support helps make sure your app works well and your users stay happy while using the app.

Key Factors That Influence Development Cost

The cost of building a software application isn’t just about how big or small the app is. Many different factors can change the final price. Here are the key factors that affect the cost to develop a software application.

1. Complexity of Features

Let’s begin with the first factor, which is the complexity of features you want to add to your application. If you want to add more features, the cost may increase because it will require more time and effort to build the app.

Simple features like a contact form are quick to code, but when you add features like AI chatbots, payment systems, user roles, etc, the development becomes a little bit more challenging and expensive too.

2. Number of Platforms

If you are building a software application for a single platform, the cost will be less than building for two or more platforms.

If you want to create a mobile app only for iOS, it will cost you relatively less than developing a separate app for both iOS and Android. Also, in case you need a web design, the web design pricing is going to go even higher.

3. Design Requirements

The design you want for your app will also be a factor that can affect the development cost. When it comes to design, we are not only talking about colours and fonts, but also about how your users are going to use your app.

A user-friendly design will take time to plan and test. Thus, expect to pay more if you also want animations, custom illustrations, or unique user experiences.

4. Backend Infrastructure

If your app needs to store user data, handle payments, or connect with other platforms, you will need a strong backend.

The backend is the part users don’t see, but it is the very essential part of the development process because it does all the necessary work behind the scenes. A complex backend system will take longer to build and maintain, increasing the costs.

5. Integration with Third-Party Services

Many apps now depend on outside services, like Google Maps, Stripe for payments, or login with Facebook or Google.

Integrating these services saves your time compared to building them from scratch, but they still need to be set up correctly.

Some also come with monthly fees, which can add to the ongoing costs. Thus, your software application development cost increases.

6. Team Location and Experience

The one building your app also affects the cost to develop a software application.

A UK-based team may charge more than an overseas team, but they offer better communication, time zone alignment, and local support.

Experienced developers also charge more, but they often provide higher quality and faster results.

7. Timeline and Urgency

If you need your app built quickly, it may cost more. Tight deadlines often mean hiring extra developers or working longer hours to hit the target.

The projects that are rushed also increase the risk of bugs, missed details, and unexpected setbacks. On the other hand, if you are flexible with time, you may be able to lower costs by spreading the work out over a longer period.

8. Maintenance and Future Updates

Your costs don’t stop once the app is launched. You will need to fix bugs, update the app, respond to the feedback gathered from users, and ensure your app stays compatible with new devices and software versions.

If your app is expected to grow or change often, it is worth setting aside a regular software app maintenance budget.

Hidden Costs You Shouldn't Ignore

Most businesses focus on the obvious costs, like development and design, when planning for their software application development. However, there are many expenses, and you will end up paying for them, and you won’t even know it. That is why they are called hidden costs.

Next are the third-party services, such as payment gateways, analytics tools, or email systems. Many of these start free but become paid as your user base grows. App store fees are another factor; both Apple and Google charge annual fees to keep your app listed.

Then, there is data storage and security; you may need extra encryption or GDPR compliance tools, which can add to costs. Customer support setup, whether through live chat or ticketing systems, also carries setup and ongoing expenses.

Finally, unexpected bug fixes after launch can demand time and money, especially if they are urgent. All these costs may seem small at first, but if not planned for, they can affect your budget in the long term and affect your business growth.

Therefore, it is essential to know these hidden costs. It will also allow you to prepare better and avoid last-minute surprises.

How to Budget Smartly for Your Software Application Project

If you also want to build a software application but also want to stay safe from hidden costs and have a clear budget, you can use the following ways to budget smartly for your software application project.

1. Define Clear Goals and Features

You need to be clear on what you want your app to do before developing your software application. You should focus only on the features that are essential for your users.

You can also make a list of features that are must-haves versus the ones you think are “nice-to-have.” It will help you avoid spending money on extras you don’t need right away.

2. Request Detailed Quotes from Multiple Sources

You don’t need to settle on the first developer or agency you speak to. You should get customised quotes from at least two or three teams so you can compare the prices and what’s included.

Make sure each quote clearly shows the costs by task or phase, so you can see where your money is going.

3. Break the Budget

You should divide your budget across the main phases: planning, design, development, testing, deployment, and post-launch support. This helps you keep track of your spending at each step. It also ensures you don’t run out of funds before the project is finished.

4. Add a Contingency Buffer (10–20%)

Software projects may come with unexpected turns. Whether it’s a change in requirements or a hidden technical issue, having an extra buffer helps you deal with surprises without panicking or stopping the work.

5. Track Your Costs Regularly

Another way to budget smartly is to keep a close eye on your spending as the project moves forward.

You use simple tools like spreadsheets or budgeting apps to record what has been paid and what’s left. Regular check-ins help you stay on top of your budget and allow you to spot any overruns early.

6. Account for Long-Term Costs

Don’t forget that software doesn’t stop costing money once it’s launched. All of the following things require a budget plan:

• Hosting
• App store fees
• Support

You should keep some of the amount aside for these ongoing costs, so your app continues to run smoothly.

7. Avoid Scope Creep by Sticking to Your Plan

Imagine your software application development project starts. However, you still keep adding new ideas. This is what we call scope creep.

Even a small change will require more work, which in turn means more bugs and costs. It is important to stick to what you have planned and save any new features for a later version of the app.

How to Reduce Software Application Development Costs

Many businesses, when building the app, don’t have a large budget. In that case, they want to get their software application built, but under their specific budget. Here are some ways you can use to reduce the development costs.

1. Start with a Minimum Viable Product (MVP)

An MVP is a basic version of your app that includes only the most essential features. MVP in software development lets you test whether your new business idea is working, get feedback from users, and then improve it later.

2. Use Cross-Platform Development Tools

There are many cross-platform development tools like Flutter or React Native that allow developers to write one code that works on both iOS and Android.

This saves a lot of time and effort compared to building two separate apps and can reduce your development costs by a significant margin.

3. Utilise Ready-Made Components

Suppose you don’t want to build everything from scratch, and also reduce the software application development cost.

In that case, you can use existing libraries, templates, and services for features like logins, maps, notifications, and payments. Many of these tools are reliable, secure, and can be integrated easily.

4. Communicate Clearly and Often With Your Team

In case you aren’t communicating properly, then mistakes are bound to occur. This also means extra time and cost.

You need to make sure you give clear instructions, share updates regularly, and ask questions if something isn’t clear. A team that communicates clearly can work faster and is more productive.

5. Hire Based on Skill and Reliability

You may want to hire a software development company that is relatively cheaper than others. However, they may also lack experience, which means you will end up paying more for fixes and delays.

A slightly more expensive but skilled team will often deliver better results in less time, giving you better value for money.

6. Plan for Future Updates

You don’t need to launch with every feature under the sun. You can focus on getting the basics right and leave advanced or non-essential features for future updates. This reduces initial costs and lets you adapt based on user feedback.

7. Keep the Design Simple and User-Friendly

While flashy animations and detailed graphics look great, they often add extra time and development costs. A functional design that’s easy to navigate can be just as effective, and much more cost-efficient.

8. Avoid Last-Minute Changes

You should try to finalise the structure of your app and features before software application development begins.

Late changes, especially during custom software development or testing, can be expensive and take time. If a new idea pops up, note it down for a later version instead of letting it affect the current build.

Partner With Arramton to Build a Software Application Based on Your Needs & Budget

At Arramton, we believe in offering the best and customised solutions to businesses who want to get their software application built. They don’t use the same approach for every app.

We first understand your business, goals, and challenges so we can create a solution that meets your needs and budget.

Our team works with you at every step: from planning and design to development and support, whether you are a startup with a simple app idea or a business looking to digitise their operations.

With clear pricing models, good communication, and a focus on value, we make it possible to turn your idea that you have imagined for your software application easily and without any stress.

Conclusion

So far, we have learned that the cost of building a software application depends on many factors, like the type of app, how many features it has, the platforms you choose, and the team you work with.

A basic app will cost much less than a complex one with advanced design, multiple platforms, and custom features. You also need to think about extra costs like hosting, app store fees, third-party tools, and future updates.

The best way to manage your budget is to plan carefully, start with the most important features, and build in stages.

Also, avoid adding last-minute changes, and work with a team that understands your goals and communicates clearly. This will help you save money and avoid surprises later on.

If you are also ready to bring your software idea to life, Arramton is here to help you. You can reach out to us if you want to build the right solution for your business, your users, and your budget. Our team is here to guide you every step of the way. Let’s build something that works together.

Frequently Asked Questions

Q1 Can I build a software app under a small budget?

Ans Yes, you can build the software app if you have a small budget. You can develop your app that includes the basic features and work with a team that is small in size or one that works remotely. This helps keep costs down while still allowing you to launch a great software app.

Q2 How long does software development usually take?

Ans It will take a few weeks or months to develop your software app. It will depend on the app you want to build and the features you want to include. The time for planning, testing, and fixing any issues may increase the development time.

Q3 What’s the cheapest way to build an app?

Ans A great way that will suit your budget is to use no-code or low-code tools to build an app. These platforms allow you to create simple apps easily. You can also reach out to developers from countries where the development charges are lower. However, make sure they have good reviews and skills.

Q4 Do I need to pay after the app is built?

Ans Yes, there will be some costs you need to pay for continuously, like monthly or yearly. You will need to pay for hosting, updates, bug fixes, and fees for using other services within your app, such as payment gateways or maps.

Q5 Is it better to hire an agency?

Ans Yes, hiring an agency is a great choice. They can build your software app and will also take care of each phase, such as design, coding, and testing.