"Can't I just buy something?" – This is what many entrepreneurs ask themselves before thinking about custom software development. Sometimes the answer is yes. But in many cases there is no standard software that perfectly fits your processes.
This guide honestly explains what custom software costs – and when it's worth it.
When Is Custom Software Worth It?
Custom software is worth it when:
1. No suitable product exists: Your processes are too specific for standard software
2. Integration required: You need to connect various systems
3. Scaling needed: You want to grow without exploding license costs
4. Competitive advantage: The software is part of your unique selling proposition
5. Data security: You don't want sensitive data with third-party providers
Price Overview by Project Size
Small Tools and Automations (€5,000 – €25,000)
What you get:
- Simple web applications
- Data import/export tools
- Reporting dashboards
- Basic CRMs or customer portals
- Workflow automations
Timeline: 1-3 months
Team: 1-2 developers
Example project: A craft business needs a time-tracking application with project assignment and automatic reports. Cost: approx. €12,000.
Medium Business Applications (€25,000 – €100,000)
What you get:
- Complete web applications with user login
- ERP modules
- E-commerce platforms
- Customer portals with self-service
- Mobile apps (iOS + Android)
- API integrations
Timeline: 3-9 months
Team: 2-4 developers
Example project: A logistics company needs a portal for supplier management with order management, document upload and automatic invoice processing. Cost: approx. €65,000.
Complex Enterprise Solutions (€100,000 – €500,000+)
What you get:
- Complete ERP/CRM systems
- Scalable cloud platforms
- SaaS products
- Complex e-commerce with B2B features
- AI-powered applications
Timeline: 6-18 months
Team: 4-10+ people
What Drives Costs?
1. Business Logic Complexity
The more complex your processes and rules, the more development time is needed. A simple CRUD application is cheaper than one with complex calculations, approval processes and exception rules.
2. Integrations
Every system integration (ERP, CRM, payment gateway, external API) costs €3,000 – €15,000 extra. Old systems without modern APIs are more expensive to integrate.
3. User Count and Scalability
Software for 10 internal users is built differently than for 10,000 external customers. Scalability has its price.
4. Security Requirements
Medical software (GDPR, MDR), financial applications (BaFin) or critical infrastructure have higher security and compliance requirements.
5. Quality Level
- Automated tests: +20-30% development time, but significantly fewer bugs
- Performance optimization: +10-20%
- Accessibility (WCAG): +10-15%
- Extensive documentation: +10-20%
Ongoing Costs After Development
Many companies forget the ongoing costs:
Hosting and Infrastructure
- Simple application: €50 – €200/month
- Medium application: €200 – €1,000/month
- Scalable platform: €500 – €5,000/month
Maintenance and Further Development
Calculate 15-20% of development costs per year for:
- Security updates
- Bug fixes
- Small improvements
- Performance optimizations
Support
- Level-1 support (FAQ, documentation): Often internal
- Level-2 support (bug fixes): €500 – €3,000/month with the developer
Standard Software vs. Custom Development: Break-Even
An important consideration: At what point does custom development make sense over standard software?
Example: You're looking at a CRM for €150/user/month.
- With 20 users: €36,000/year
- Custom CRM alternative: approx. €60,000 development + €10,000/year maintenance
- Break-even: Year 2
From year 3 you save money with custom software – and have exactly the features you need.
Softwara: Transparent Prices, High Quality
We at Softwara believe in price transparency. That's why we offer:
- **Free requirements workshop**: We estimate your project together
- **Fixed-price offers** for clearly defined projects
- **Time & Material** for exploratory projects with growing requirements
- **Nearshore advantage**: 40-60% cheaper than purely German development, same quality
[Request a free quote](/kontakt) – we respond within 24 hours.