How Much Does Custom Software Development Cost in 2026?

You have an idea. Maybe it is a SaaS platform, an internal tool, or a mobile app that could change your industry. The first thing you Google? "How much does it cost to build custom software?"

And every single result gives you the same useless answer: "It depends."

Cool. Thanks. Very helpful.

Let's actually break this down with real numbers, real scenarios, and zero fluff.

The Short Answer

Here is the range most companies will quote you:

• Simple MVP (3-6 features): $8,000 to $25,000
• Mid-complexity app (10-20 features): $25,000 to $80,000
• Full-scale platform (enterprise-level): $80,000 to $300,000+

But these numbers mean nothing without context. A "simple" app for one company might be a nightmare for another. So let's talk about what actually drives the price up or down.

What Makes Custom Software Expensive?

1. Scope Creep is the Silent Killer

You start with "I just need a dashboard." Then it becomes "actually, add user roles." Then "we need real-time notifications." Then "can we integrate with Stripe, Slack, and our CRM?"

Every feature you add is time. Every hour is money. This is how a $20k project becomes a $60k project before you even launch.

The fix? Start with an MVP. Build the core. Launch it. Then add features based on what your actual users need, not what you think they might want.

2. Where Your Development Team is Based

This is the single biggest factor in pricing. Here is what hourly rates look like around the world:

• US/Canada/Australia: $150 to $250/hour
• Western Europe (UK, Germany): $100 to $200/hour
• Eastern Europe (Poland, Ukraine): $40 to $80/hour
• South Asia (India, Pakistan): $20 to $50/hour
• Turkey and surrounding region: $30 to $70/hour

A 500-hour project with a US agency? That is $75,000 to $125,000. The same project with a skilled international team? $15,000 to $35,000. Same quality. Fraction of the price.

3. Design Complexity

A clean, functional UI is one thing. A fully custom design system with animations, micro-interactions, and pixel-perfect responsiveness? That adds 20-40% to your total cost.

Most MVPs do not need award-winning design on day one. They need clarity, speed, and something that does not look like it was built in 2012.

4. Integrations and Third-Party Services

Every API integration takes time. Payment processing, email services, analytics, CRMs, maps, authentication providers. Each one is anywhere from 8 to 40 hours of development depending on complexity.

A project with 2-3 integrations? Normal. A project with 10+ integrations? Budget accordingly.

5. Not Starting with an MVP

This is where most people burn money. They want the full vision on day one. Every feature, every edge case, every nice-to-have.

Here is the reality:

Building the full thing without validation is like printing 10,000 copies of a book nobody has read yet. Start small. Validate. Scale.

Real Cost Breakdown: What Are You Actually Paying For?

Let's say you are building a SaaS platform with user authentication, a dashboard, payment processing, and an admin panel. Here is roughly where the hours go:

Total: 245 to 470 hours

At US rates ($175/hr average), that is $43,000 to $82,000.

At international rates with the right team ($45/hr average), that is $11,000 to $21,000.

Same deliverable. Same tech stack. Massive price difference.

The $20,000+ Problem with Most Companies

Here is something most agencies will not tell you. A huge chunk of what you pay does not go toward building your product. It goes toward:

• Fancy office rent in San Francisco or London
• Layers of project managers and account executives
• Bloated timelines because more hours equals more revenue
• Sales teams, marketing budgets, and overhead you are funding

When you hire a large agency, you are not just paying for developers. You are paying for their entire operation.

That is why most companies will not even look at your project for less than $20,000 to $30,000. And that is for something basic.

How Kentel Does It Differently

At Kentel, we built our process around one idea: you should only pay for what actually gets built.

Here is why our clients get more for less:

International team, global talent. Our developers and designers work across time zones, which means competitive rates without sacrificing quality. You get senior-level talent at a fraction of the US or Western European price.

No bloat. No account managers. No unnecessary meetings. You talk directly to the people building your product. Every dollar goes toward actual development.

Speed matters. Our process is built for velocity. What takes other agencies 3-4 months, we deliver in 4-8 weeks. Less time means less cost and faster time to market.

MVP-first approach. We will talk you out of building features you do not need yet. Seriously. We would rather you launch fast, get users, and then invest in the features that actually matter.

The result? Projects that would cost $40,000+ at a traditional agency, delivered at a fraction of that. With weekly updates, milestone approvals, and zero surprises.

How to Get an Accurate Quote

Stop guessing. Here is what you should have ready before talking to any development company:

1. Core features list. What does your software absolutely need to do on day one? Keep it to 3-6 features max for an MVP.

2. User types. Who is using this? Admins? End users? Both? Each user type adds complexity.

3. Integrations. What existing tools does this need to connect with? Payment gateways, email providers, CRMs, analytics?

4. Design expectations. Do you have a brand guide? Existing designs? Or starting from zero?

5. Timeline. When do you need this live? Rush jobs cost more. Plan ahead if you can.

The more clarity you bring, the more accurate (and lower) your quote will be.

Should You Build Custom Software at All?

Honest answer: not always.

If an off-the-shelf tool does 90% of what you need for $50/month, use it. Custom software makes sense when:

• No existing tool fits your workflow
• You need to own your data and infrastructure
• Per-user SaaS pricing will cost more than building your own over 2-3 years
• Your software IS your product (SaaS, marketplace, platform)
• You need a competitive advantage that templates cannot give you

If any of those apply, custom development is worth every penny.

Bottom Line

Custom software development in 2026 does not have to drain your budget. The cost depends on scope, team location, complexity, and whether you start smart with an MVP or try to build everything at once.

The companies that win are the ones who launch fast, learn from users, and iterate. Not the ones who spend 8 months and $150k building something nobody asked for.

If you are thinking about building something and want real numbers (not "it depends"), let's have a quick conversation. No pitch, no pressure. Just an honest breakdown of what your project would actually cost.

Book a free 15-minute call and let's figure it out together.