How Much Does Custom Software Development Cost in 2025?

In 2025, more UK businesses are choosing custom software to work more efficiently and stay ahead of the competition. But one big question remains for many: how much does it really cost to build software that fits your business needs?

There’s no simple answer—but this guide will help you understand what goes into the cost. We’ll explain what affects the price, what’s usually included, and share real examples from the UK to give you a clear idea of what to expect.

What to Consider Before Starting Custom Software Development

Before you spend money on custom software, it’s important to be clear about your goals, limits, and what you expect. Taking time to plan now can save time, money, and stress later. Here are some key things to consider:

1. Your Business Requirements

Have a clear understanding of the core problem you’re solving. Define:

• • End-user needs and pain points
  • Primary features vs optional features
  • Operational workflows to automate

A strong foundation can avoid scope creep — learn more in Best Tools for Project Planning & Discovery Phase.

2. Your Budget and Timeline

Know your budget range and ideal timeline. This helps software partners suggest the right pricing model and delivery approach.

3. Scalability and Long-Term Goals

Think beyond version 1. Will you need:

• • API integrations?
  • Cloud scalability?
  • Future updates and modular add-ons?

Why You Need Software Scalability for Startups offers a deeper dive.

4. Security and Compliance Requirements

If your app will handle sensitive data, build with security and compliance in mind — especially GDPR and ISO standards. For tips, read Are You Secure Online? A Guide to Protecting Your Data.

What Really Impacts Custom Software Development Cost?

Several key factors influence how much you’ll pay for custom software development in 2025:

1. Project Scope and Software Features

The more complex your software, the more time and expertise it demands.

• • Basic apps (dashboards, calculators): £30,000–£60,000
  • Moderate complexity (marketplaces, booking systems): £60,000–£120,000
  • Enterprise-level software (AI platforms, ERPs): £120,000–£250,000+

Think about how many types of users you’ll have, what systems the software needs to connect with, the steps in your workflow, and any reports you need. Each of these adds to the complexity and cost.

2. Development Timeline

Your timeline directly affects cost. A tight deadline often requires larger teams or overtime, which can inflate the budget.

• • MVP builds: 6–12 weeks
  • Full-scale platforms: 4–9 months

Need it faster? Expect a 20–30% increase in pricing.

3. Technology Stack

The technology you choose—like new frameworks or advanced tools—can affect both the cost and how easily your software can grow in the future.

For example, AI integration or cross-platform app development (like React Native or Flutter) may increase upfront costs but lower long-term maintenance.

Explore Top 10 Agile Tools for Software Development Teams for ideas on tech stack optimisation.

4. Team Composition & Engagement Model

You can hire:

• • An in-house UK team (£80–£150/hr)
  • Offshore developers (£25–£80/hr)
  • A hybrid agency offering UK-based strategy + offshore development

As explained in our blog Software Development Outsourcing in 2025, many UK companies now use a mix of in-house and outsourced teams to save money while staying in control.

Fixed Price vs Hourly Pricing – Which Is More Cost-Effective?

When planning your custom software project, you’ll usually choose between a fixed price or hourly (time and materials) model. Each one has its pros, depending on your budget, goals, and how clear your project requirements are.

Fixed Price Model

With fixed pricing, the scope, features, timeline, and cost are agreed upon upfront. This model works best when the project is well-defined and unlikely to change.

Pros:

• • Predictability: You know exactly how much you’ll spend
  • Defined scope: Ideal for small to mid-sized projects with clear deliverables
  • Easier budgeting: No surprises or cost creep

Cons:

• • Limited flexibility: Any changes in scope may require change orders or new agreements
  • Higher contingency buffers: Vendors may inflate pricing to cover unknowns
  • Longer initial planning phase: More time is needed to detail requirements upfront

Best For:

• • MVPs with a clear feature list
  • Landing pages or promotional apps
  • Proof-of-concept or short-term projects

Example: If you’re building an MVP to validate your idea, a fixed cost of £40,000–£60,000 may suit you, as seen in How Much Should an MVP Cost in 2025?

Hourly (Time & Material) Model

In this model, you’re billed for the actual time and resources used — typically by the hour or day. It offers greater flexibility and transparency during development.

Pros:

• • Flexibility: Ideal for projects with evolving scope or priorities
  • Transparency: You can track progress and cost in real-time
  • Better for Agile: Supports iterative development and user-driven changes

Cons:

• • Unpredictable total cost: Budgets may shift as requirements evolve
  • Requires trust and oversight: You need clear communication and regular updates
  • Can overrun if poorly managed: Without proper planning, timelines can slip

Best For:

• • Long-term or complex applications
  • Projects using Agile or Lean methodologies
  • Scaling an MVP into a full product over time

Example: If you’re building a large SaaS platform and plan to launch it in stages, hourly pricing can give you more flexibility. In the UK, rates usually range from £60–£120 per hour, while offshore rates are around £30–£60 per hour.

Hybrid Approach: Best of Both Worlds?

Some companies use both pricing models: a fixed price for the early discovery and MVP phase, then hourly rates for updates and scaling later on. This helps reduce risk at the start and allows more flexibility as the project grows.

For example, Emvigo offers flexible pricing with hybrid models. You can learn more in our blog The Power of the MVP: Smart Product Development Starts Here.

MVP Cost Breakdown in 2025

Building a Minimum Viable Product (MVP) is a smart way to test your software idea before spending too much. An MVP has just the key features needed to solve one main problem, so you can check if people want it, get feedback, and lower future risks.
day:

Estimated MVP Cost Ranges

• • Basic MVP (1–2 features, no integrations): £25,000–£50,000
  • AI-enhanced MVP (chatbots, analytics, automation): £40,000–£70,000
  • Scalable MVP with backend + dashboards: £50,000–£90,000

The final cost depends on what you’re building—like a web app, mobile app, or both—the design’s complexity, and whether your team is based in the UK or abroad.

What’s Typically Included in MVP Development

• • Product strategy & business analysis
  • User journey mapping and wireframes
  • Frontend and backend development
  • API integrations (if any)
  • Core functionality only (e.g. login, dashboard, one main feature)
  • QA testing and bug fixes
  • Basic admin panel (optional)

Want to launch quickly? Emvigo can build a working MVP in just 4–8 weeks using agile sprints and close collaboration.

Don’t Forget Maintenance & Post-Launch Costs

The initial build is only part of the story. You’ll need to budget for:

• • Ongoing maintenance and updates (15–20% of annual budget)
  • Hosting, third-party services, and licensing
  • Security patches and GDPR compliance
  • Feature enhancements and user-driven updates

Check out Budgeting for AI Tools: Agency Costs & What to Expect for future-proofing your software finances.

How Emvigo Helps You Stay Within Budget

Picking the right development partner is just as important as setting your software budget. The wrong team can lead to delays and rising costs. Emvigo stands out by combining strong technical skills with a clear focus on your business goals.

At Emvigo Technologies, we understand how critical budgeting is when building software. That’s why we offer:

• • Dedicated teams for AI, cloud, mobile, and custom software
  • Transparent and phased pricing models
  • Fast-tracked MVP delivery in 4–8 weeks
  • Support for both startups and enterprise-level clients
  • Experience across industries including fintech, healthtech, education, and e-commerce
  • A proven delivery track record and recognition as a top-performing software development partner

Recognised by Clutch for our software expertise, Emvigo blends global delivery power with local UK knowledge. Our flexible approach helps businesses save money without losing quality or speed.

Ready to build smarter, faster, and more cost-effectively? Talk to Emvigo about your custom software project today.

Frequently Asked Questions (FAQs)

1. What influences the cost of custom software the most?

The main things that affect cost are the size of the project, the tech you use, and your team setup. More complex features or tight deadlines can make the project more expensive.

2. How much should I budget for maintenance and upgrades?

Each year, you can expect to spend about 15–20% of your original development budget on ongoing costs. This covers updates, bug fixes, and improvements based on user feedback.

3. Does Emvigo offer AI-powered software solutions?

Yes, Emvigo has a skilled AI team that creates smart, data-driven solutions — like chatbots and tools for predicting trends. Check out our blog How AI and Automation Transform Custom Software Development for real-world examples.