The short answer
Most small-business custom software costs $5,000–$100,000 to build. Single automations and payment integrations cost a few thousand dollars; booking systems, portals and CRMs start around $10,000–$20,000 with an independent engineer and commonly reach $50,000–$100,000+ at agencies; mobile apps and multi-tenant SaaS cost the most. Plan for hosting and third-party services at cost, plus roughly 15–20% of the build price per year to keep software secure, updated and working.
Typical costs by type of project
Workflow automation
- Typical market range
- $400–$5,000 per workflow
- My starting price
- From $2,500
- Typical timeline
- Typically 1–3 weeks per workflow
Payments & billing
- Typical market range
- A few thousand for checkout; $25,000–$50,000 for full B2B billing
- My starting price
- From $5,000
- Typical timeline
- Typically 1–4 weeks
Customer or employee portal
- Typical market range
- $5,000–$15,000 focused first version; $20,000–$80,000 typical
- My starting price
- From $10,000
- Typical timeline
- Typically 4–8 weeks
AI assistant
- Typical market range
- $5,000–$15,000 basic; $30,000–$120,000 grounded in your data
- My starting price
- From $10,000
- Typical timeline
- Typically 2–8 weeks
Booking & scheduling
- Typical market range
- $25,000–$60,000 basic; $80,000–$180,000 with payments and staff rules
- My starting price
- From $15,000
- Typical timeline
- Typically 4–8 weeks
Custom CRM
- Typical market range
- $24,000–$45,000 basic; $54,000–$112,000 standard
- My starting price
- From $20,000
- Typical timeline
- Typically 6–12 weeks
Mobile app
- Typical market range
- Most $10,000–$50,000; complex apps far more
- My starting price
- From $25,000
- Typical timeline
- Typically 8–16 weeks
Multi-tenant SaaS
- Typical market range
- $80,000–$200,000; $200,000–$500,000+ with enterprise compliance
- My starting price
- From $20,000/month retainer
- Typical timeline
- 3–12 months depending on complexity
| Project | Typical market range | My starting price | Typical timeline |
|---|---|---|---|
| Workflow automation | $400–$5,000 per workflow | From $2,500 | Typically 1–3 weeks per workflow |
| Payments & billing | A few thousand for checkout; $25,000–$50,000 for full B2B billing | From $5,000 | Typically 1–4 weeks |
| Customer or employee portal | $5,000–$15,000 focused first version; $20,000–$80,000 typical | From $10,000 | Typically 4–8 weeks |
| AI assistant | $5,000–$15,000 basic; $30,000–$120,000 grounded in your data | From $10,000 | Typically 2–8 weeks |
| Booking & scheduling | $25,000–$60,000 basic; $80,000–$180,000 with payments and staff rules | From $15,000 | Typically 4–8 weeks |
| Custom CRM | $24,000–$45,000 basic; $54,000–$112,000 standard | From $20,000 | Typically 6–12 weeks |
| Mobile app | Most $10,000–$50,000; complex apps far more | From $25,000 | Typically 8–16 weeks |
| Multi-tenant SaaS | $80,000–$200,000; $200,000–$500,000+ with enterprise compliance | From $20,000/month retainer | 3–12 months depending on complexity |
What drives the price
- How many kinds of users there are (customers, staff, admins) and what each can see and do
- Integrations with the tools you already use: accounting, calendars, CRMs, email
- Payments, especially subscriptions, refunds and paying out to other businesses
- Moving existing data out of spreadsheets or an old system
- AI features, which add design, testing and ongoing usage costs
- Regulated data such as health or financial records, which can add 20–40%
- A mobile app alongside the web version
The costs people forget: hosting and maintenance
Hosting, databases, email, SMS, AI usage and payment processing are billed by each provider at cost, to accounts in your name. Expected costs are estimated in your written scope.
Maintenance is the other ongoing cost. A common planning rule is 15–20% of the build price per year for security patches, updates, monitoring and fixes, so a $50,000 platform typically needs $7,500–$10,000 a year. Simple, stable systems can cost less.
Hourly rates: freelancers, agencies and offshore teams
Upwork web developers (all levels)
- Typical hourly rate
- Median about $30; commonly $15–$50
Senior US freelancers
- Typical hourly rate
- Roughly $100–$220
US agencies
- Typical hourly rate
- Commonly $100–$149
NYC agencies
- Typical hourly rate
- Commonly $120–$300+
Eastern European agencies
- Typical hourly rate
- Commonly $50–$99
Ukraine, Mexico and the Philippines
- Typical hourly rate
- Commonly $25–$49
India
- Typical hourly rate
- Commonly under $25
| Provider | Typical hourly rate |
|---|---|
| Upwork web developers (all levels) | Median about $30; commonly $15–$50 |
| Senior US freelancers | Roughly $100–$220 |
| US agencies | Commonly $100–$149 |
| NYC agencies | Commonly $120–$300+ |
| Eastern European agencies | Commonly $50–$99 |
| Ukraine, Mexico and the Philippines | Commonly $25–$49 |
| India | Commonly under $25 |
How to spend less without cutting corners
- Start with the smallest version that solves your biggest problem, then grow it. Industry data consistently finds small projects succeed far more often than large ones.
- Buy the standard parts, meaning accounting, email and payroll, then build only what makes your business different.
- Connect the tools you already have before replacing them.
- Insist on a fixed price per phase, with changes approved in writing.
Has AI made custom software cheaper?
Somewhat, but less than the headlines suggest. In one controlled experiment, developers using GitHub Copilot finished a small, well-defined task 55.8% faster. But a 2025 study of experienced developers working on their own mature projects found they were 19% slower with AI tools, even though they believed they were faster. Google's DORA research describes AI as an amplifier: it speeds up teams with strong testing and review, and magnifies problems in teams without them.
In practice, AI lowers the cost of well-scoped work when an experienced engineer reviews and tests everything it produces. It doesn't remove the need for that engineer.
When custom software isn't worth it
- An existing product fits your process and costs less per year than maintaining a custom build would
- You need something working this week and a template or off-the-shelf tool will do
- The process itself is still changing every month. Settle it first, then automate it
Questions
Why do quotes for the same project vary so much?
Quotes differ in scope assumptions, team location, overhead and how much testing, security and documentation is included. Ask each provider for a written scope listing features, what's excluded, and what happens after launch, then compare like with like.
Is a fixed price better than paying hourly?
For most business projects, yes. A fixed price per phase puts the risk of overruns on the developer and lets you budget with confidence. Hourly billing makes sense for open-ended work where the scope genuinely can't be defined yet.
What does custom software cost to run each month?
Two things: infrastructure (hosting, database, email, SMS, AI usage and payment fees, billed by each provider at cost) and maintenance. My care plans start at $150/month for websites and $250/month for custom software.
Sources
- Clutch: Web development pricing
- Upwork: Web developer cost
- GoodFirms: Cost to develop an app
- Bet on AI: Automation rate card (54 operators)
- Cadence: Cost to integrate Stripe
- Box Software: Customer portal cost
- ProjectCostEstimator: Chatbot development cost
- LI Solutions: Booking system cost
- RaftLabs: CRM development cost
- Kanopy Labs: Cost to build a multi-tenant SaaS
- CodeStringers: Software maintenance costs
- Standish Group CHAOS report (summary)
- Peng et al.: GitHub Copilot controlled experiment
- METR: AI and experienced developer productivity
- DORA: State of AI-assisted Software Development 2025