What Does Custom Software Cost? An Honest Pricing Guide for SMEs
"So what does it cost?" is the first question in almost every conversation about a custom app or piece of software – and the most honest answer, at first, is: it depends. That's not an excuse; it's because custom software is as varied as the problems it solves. This guide makes the cost tangible: which factors drive the price, which ranges are realistic, and how to scope a project so it stays affordable.
Why there's no off-the-shelf fixed price
With custom software, the scope drives the price – not a fixed catalogue. A simple internal form and a customer portal with login, roles and several integrations don't differ by a few percent; they differ by an order of magnitude. A blanket "app = X euros" would therefore be misleading. The good news: once you know a handful of factors, the effort is easy to estimate – and those are exactly what we'll walk through now.
The 6 factors that determine the price
- Scope of features: how many functions, and how complex the logic behind them? Every extra view, rule and special case costs time.
- Integrations: every connection – SharePoint, Google Drive, CRM, ERP, accounting – means its own interface, authentication and edge cases. Integrations are often the biggest hidden item.
- Users, roles & permissions: a tool for three people is cheaper than a portal with login, multiple roles and external customers who may only see their own data.
- Data & migration: the data model, importing legacy records and data quality – "just import the old spreadsheets" is rarely trivial.
- Design & UX: standard components are cheap; a custom-designed, polished interface costs more – but pays off where customers see it every day.
- Operation: hosting, security, maintenance and further development are ongoing, not one-off. More on that below.
Realistic ranges
The table below gives rough guide values for small and mid-sized companies – not an offer. The actual price emerges only from your scope. It still helps you get a feel for the order of magnitude.
| Project size | Typical range | Timeline |
|---|---|---|
| Prototype / proof of concept Clickable, one core feature |
approx. €1,500–5,000 | 1–3 weeks |
| Small app / internal tool Admin/form tool, 1–2 integrations |
approx. €5,000–15,000 | 3–8 weeks |
| Mid-size portal / SaaS MVP Login, roles, several integrations, dashboard |
approx. €15,000–40,000 | 2–4 months |
| Larger platform Complex logic, many users, high requirements |
from €40,000 | from 4 months |
A single integration – say "connect SharePoint with Google Drive" – often lands in the small-app range in practice, because the real work sits in the interfaces and edge cases, not in the user interface.
One-off or ongoing? Keep total cost in view
The most common planning mistake: budgeting only for the build. Software is alive once it runs – it needs hosting, security updates, maintenance and usually further development, because requirements change. As a rule of thumb, budget around 15–25% of the build cost per year for running and upkeep. That's not a hidden fee; it's the price of the software still running securely and growing with you two years from now.
Build, buy or rent? When custom is worth it
Custom software isn't always the right answer. Off-the-shelf software or a SaaS subscription is cheap to start with and available immediately – but you adapt to the tool, pay monthly per user, and often end up in yet another data silo. Custom software costs more up front, but fits exactly, has no per-user license, and belongs to you.
Rule of thumb: custom is worth it when …
- check the process is part of your core business and no standard tool captures it properly.
- check per-user license costs get out of hand as the team grows.
- check you need to connect several systems in a way no off-the-shelf product offers.
- check owning your data and staying independent of one vendor matters to you.
For purely standard needs – accounting, email, office – off-the-shelf software is almost always the better choice.
How to lower the cost – without cutting quality
- Start small (MVP): build the one function that delivers the most value first – rather than everything at once from day one.
- Prototype first: validate cheaply whether the idea holds up before the big budget flows.
- Build in phases: spread the budget over time and decide again after each phase.
- Reuse what exists: reuse existing interfaces, automations and building blocks instead of building everything new.
- Keep scope disciplined: deliberately push "nice to have" to later – that keeps the first version lean.
How Lyron prices
We keep it transparent: a free initial call in which we narrow down the scope, then a fixed price per clearly scoped phase – often starting with a prototype. So you know where you stand up front, and the first step stays small. For ongoing automation packages you'll find fixed prices on our pricing page; for a custom app we prepare an individual quote after the initial call. Why we offer automation and software from one team is explained in "We build software now, too".
Want to know what your idea would cost?
In a free initial call we narrow down the scope and give you a realistic ballpark – no obligation.
Frequently asked questions
How much does a simple app cost, roughly?
Small internal tools often start in the low five figures, and a clickable prototype well below that. The exact number depends mostly on the integrations and the number of users – in a free initial call we give you a realistic range.
Fixed price or time and materials?
We prefer fixed prices per clearly scoped phase, so you have planning certainty. If we start with a prototype, the first step stays small and the risk manageable.
Is custom software worth it compared to off-the-shelf?
When no standard tool really fits, per-user license costs explode over time, or you need to connect many systems, custom software pays off. For purely standard needs like accounting or email, off-the-shelf is cheaper.
Note: The price ranges given are non-binding guide values for typical SME projects in German-speaking markets (as of 2026) and do not constitute an offer. The actual price depends on the specific scope.
About Lyron: Lyron is an automation and software consultancy based in the Düsseldorf/Neuss area of Germany. We help small and mid-sized companies automate processes and put custom software to work – productive, integrated and GDPR-compliant.