‘How much’ and ‘how long’ will my project take are the ultimate questions clients ask almost in every discovery call.

Software or app development cost whenever asked, the obvious answer is ‘it depends’. For sure, if you want a simple app it would take less time and cost whereas an app with backend support would be high in price.

When was the last time you bought a product or service? Whether that was a car or a cell phone, there were different prices depending upon features and other factors. Same is the case with the cost of software development.

From a client’s perspective, how much does software development costs? Should I hire a freelancer or a local consultancy firm? Why should I pay US rates when my project could be done offshore at a quarter price? Well, there are so many questions and confusions or from a sea of options, picking the right software development company isn’t easy.

That is the reason why we thought of preparing a software development rates guide where we will be covering cost estimation factors and how you can tactfully reduce costs by avoiding some of the common mistakes.

In this blog post, we educate our clients or potential clients about software development costs based on core factors and what best practices can help them reduce costs.

1-Average cost of software development in 2022

An average cost of software development in 2022 would be $160 per hour.

However, offshore developer rates vary a lot based on regions.

US and Eastern Europe per hour developers rates

-San Diego

• $33-38 Junior developer
• $41-57 Mid level developer
• Up to $61 Senior developer

-Michigan

• $23-36 Junior developer
• $36-45 Mid level developer
• $45-65 Senior developer

-Los Angeles

• $42-55 Junior developer
• $55-65 Mid level developer
• $65-75 Senior developer

-Dallas

• $18-37 Junior developer
• $39-48 Mid level developer
• $50-65 Senior developer

Eastern Europe offshore developer rate ranges from $40-$70.

Countries we can consider in this region are Poland, Ukraine, Belarus and more.

Canada developers per hour rates

-Toronto

• $19-34 Junior developer
• $33-45 Mid level developer
• $45-55 Senior developer

-Ottawa

• $20-35 Junior developer
• $40-60 Mid level developer
• Up to $70 Senior developer

-Montreal

• $18-30 Junior developer
• $25-38 Mid level developer
• $38-52 Senior developer

Western Europe developers rate per hour

-Germany, Berlin

• $18-27 Junior developer
• $25-35 Mid level developer
• $35-55 Senior developer

-Munich

• $17-25 Junior developer
• $26-37 Mid level developer
• $34-48 Senior developer

-Norway, Oslo

• $18-25 Junior developer
• $26-35 Mid level developer
• $36-46 Senior developer

-Spain, Barcelona

• $12-16 Junior developer
• $16-27 Mid level developer
• $27-35 Senior developer

-UK, London

• $18-25 Junior developer
• $25-35 Mid level developer
• $35-56 Senior developer

-Manchester

• $17-22 Junior developer
• $23-35 Mid level developer
• $35-44 Senior developer

-Liverpool

• $17-23 Junior developer
• $23-35 Mid level developer
• $35-51 Senior developer

Free consultation call.

2-General checklist to ask a client before giving cost estimations

-What’s the basic app idea? If you want to develop a social app like TikTok, you explain the idea to technical experts so that they could deliver a TikTok like MVP.

-What are the features I need in the software? It’s important that you know the core features of the app. Clients can prepare a document explaining each feature in detail.

-Can you provide wireframes for your design implication?

-Can you provide competitor’s apps you like?

-Is there any specific requirement/s?

3-Core factors affecting the cost of software development

Before providing a cost estimate, a software development company like us always look into the project requirements and setup a discovery call to gather all important data by asking them few very important questions. Some of the questions are part of our checklist as you can see above.

Software development cost isn’t merely about the app scale and the app complexity. Sometimes a simple app may demands dozens of screens.

Now if it isn’t about the app size/scale or complexity then what is the most driving factor? Developer hourly rate could be one of the crucial factors. Along with the technology stack.

Average rate of software development is $45,000 to 260,000, this depends upon the region from where you pick your developer or a development team. You can hire a dedicated development team from PS.

Important factors and tips in software development

1-An app which consumes less than 700 hours, may cost you less as the one would be simple.

2-If you want an app for multi-platforms with server-side application, the cost would go in 6 figures for sure.

3-Type and complexity of an app affects. Uber-like apps require a comprehensive backend, and tech stack. A simple app may not even need backend support.

4-’The more the user interaction needs in an app, the more expensive it would be an app’.

5-Complex app means more customization demanded. Also means vigorous testing.

6-Build a cross-platform app to reduce costs on building an app for multi platforms.

7-User experience is the key towards user retention and satisfaction. Better the UI, more users and retention rate.

8-Apps with heavy data crunching on servers are expensive. Use off shelf API for cost cutting otherwise custom data exchange API costs you.

9-Hiring developers can be expensive depending upon from where you hire. If you hire from the US or Western Europe, hourly rates are high.

10-Beware of the cultural differences and timezones whenever you hire a team outside your region.

How does Phaedra estimate the software development cost?

Step 1 – Send us a request (Contact Us)

Step 2 – Discovery call with PS business analysts.

Step 3 – Preparing estimates and a detailed business proposal.

Step 4 – Proposal call.

4-Best practices for reducing costs

Practice 1: Be clear about your MVP features

Prepare a list of MVP features and set priority of each and every one feature with high to low. This helps developers in getting to know which ones are of critical nature like the ones without which product won’t function.

Practice 2: Utilize ready-made UI elements

Design systems is an appropriate term where you can use ready-made design patterns, style guides and UI elements. This speeds up the design process and significantly cuts software development costs.

Practice 3: Hire QA specialist

Start QA or software testing as soon as the development process starts rather than keeping it a next development phase thing. Furthermore, QA specialists may help in product requirements if they are correct and doable.

Practice 4: Cross-platform development

React Native and Xamarin allow building cross-app development of apps rather than preparing separate iOS and Android apps. This keeps a single codebase.

Practice 5: Open source frameworks and libraries

You can greatly cut costs by using open source frameworks and libraries. Communities are built around programming languages (most of the time), which helps in implementation of various functional modules like epayments, geopositioning etc.

Practice 6: BaaS solutions

Backend as a service solutions save server side issues and reduce time in app deployment faster. BaaS providers help in user authentication, file storage, databases, infrastructure, and more.

Practice 7: Pick the right business model

If you have a clear set of requirements, a fixed price business model is for you. And if your project scope isn’t complete, go for a Time and Material business model.

Final verdict

A precise cost estimation for building a software or an app requires mutual understanding of a client with the development company/team. Like we said earlier, not just the technical but many non-technical factors can greatly affect the software cost.

Fact is, the more you are clearer on an app idea, better are the chances you connect with the right software development team.