Custom software has a reputation for costing more than expected. Usually that is because nobody explained what the cost depends on. Here is how UK pricing works, what moves the number, and worked examples so you can budget realistically.
How developers charge
Day rates. UK agencies charge per developer day, with rates that vary by location, seniority and specialism. London agencies sit at the top; regional agencies lower; freelancers lower again but with less capacity. Offshore teams in South Asia or Eastern Europe charge a fraction of UK rates, with the trade-offs we describe in offshore vs UK development. A UK company with its own overseas engineering team, which is our model, sits between the two: UK contract, UK project management, offshore engineering cost.
Fixed price. For defined scope, most agencies convert their day estimate into a fixed price. You get certainty; they take the risk of estimating well.
Retainers. A fixed number of days per month for ongoing development after launch.
Rough project ranges
These are the bands we see in the UK market, not quotes.
Small internal tool. A form-based application that replaces a spreadsheet: a few screens, a database, simple reporting, a handful of users. Low thousands of pounds.
Customer portal. Login, view orders and invoices, download documents, submit requests, integrated with your accounts or ERP. Tens of thousands, depending on integrations and design. See customer portal benefits.
Mobile app. A consumer or field app on iOS and Android with a back end, user accounts and notifications. Tens of thousands upwards. Our mobile app cost guide goes deeper.
SaaS platform or complex system. Multi-tenant, subscription billing, roles and permissions, integrations, reporting, high availability. Well into six figures over its first year, usually built in phases starting with an MVP.
What drives the price
- Scope. The number of screens, features and workflows. The largest factor by far.
- Integrations. Each external system (accounts, CRM, payment, courier) adds design, build and testing.
- Design. A polished, custom interface costs more than a functional one built with standard components. Both are legitimate choices.
- Users and roles. Different permissions for different people multiply the testing.
- Data migration. Bringing existing data in cleanly is a project in itself.
- Platforms. Web only, or web plus native mobile apps.
- Quality requirements. Security reviews, accessibility, high availability and audit trails all add work.
- Vagueness. The single biggest driver. Unclear requirements mean rework, and rework is paid for twice.
What keeps it down
- A clear written brief. See how to write a software brief.
- Starting with the smallest version that delivers value, then improving it.
- Using standard components and platforms where the function is not differentiating. See custom vs off-the-shelf.
- Making decisions quickly during the project.
- Having one person on your side with authority to sign things off.
The costs after launch
Software is not finished when it launches. Budget for hosting, monitoring, security updates, bug fixes, and the improvements you will want once real users are on it. A common guide is 15 to 20 percent of the build cost per year. Our projects include a 30 day warranty, then a support plan sized to the system.
Getting a real number
We do not publish prices because every project is different, but we will give you a fixed price for defined scope after a free discovery call, normally within two working days. Read about our custom software service or request a quote.
Key takeaways
- UK agency day rates vary widely; offshore teams are cheaper per day, and a UK company with its own overseas team sits in between with UK accountability.
- Simple tools sit in the low thousands; portals and apps in the tens of thousands; complex platforms beyond that.
- Scope, integrations, design, user roles and data migration drive the number. Vagueness drives it most of all.
- Budget for what happens after launch: hosting, support and improvements.
Frequently asked questions
Need help with custom software?
eSolution Hub is a UK company with its own engineering team in Lahore. Every project starts with a free 30 minute discovery call and a written quote. Read about our custom software service or request a quote.
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