Updated 9 min read

How much does custom software development cost?

Daniel Cherman Co-founder & CEO

In short

Our custom software projects typically cost €30,000–150,000 (about 330,000–1,650,000 kr, excl. VAT), with a fixed price agreed after a short discovery phase. A focused MVP or customer portal sits at €30,000–60,000; a system with many integrations, roles and reporting moves toward €150,000. After launch, budget for hosting, updates and further development: from €4,200 a month if a team keeps it running for you.

Custom software for a small or mid-sized Nordic company typically costs €30,000–150,000 (about 330,000–1,650,000 kr, excl. VAT). That is the range our custom software development projects land in, and we agree a fixed price after a short discovery phase. A focused MVP or customer portal usually costs €30,000–60,000. An internal system with several integrations, user roles and reporting moves toward the top of the range. This guide is for founders, CEOs and IT managers who need a realistic budget before they talk to vendors.

We are Smoother Development AB, a Swedish company with an engineering team in Ukraine. The prices below are the ones we publish. Where we talk about the wider market, we say so and name the source.

How much does custom software cost by project type?

Custom software is software built for your workflow and owned by you, as opposed to a standard product you subscribe to. The table shows what we charge for the project types we are asked about most.

Project typeTypical scopeOur price (excl. VAT)Typical timeline
Online storeStorefront, checkout, product and inventory managementFixed packages: €6,000, €16,000 or €38,0004–20 weeks
Customer or partner portalLogin, dashboard, documents, one or two integrations€30,000–50,0006–8 weeks
SaaS MVP or new productOne core workflow, billing, admin tool€30,000–60,0008–12 weeks
Internal business systemProjects, time and invoicing, e.g. a construction ERP linked to FortnoxFixed price after discovery, within €30,000–150,000First version in 8–12 weeks
Platform with many integrationsSeveral connected systems, roles, reporting, audit logs€80,000–150,0004–8 months
One AI workflow in productionE.g. answers from company documents, orders routed into the ERP€3,500 audit + €20,000–35,000 fixed-price launch5 days + up to 6 weeks
Existing or AI-built appCode audit, then stabilization or phased modernizationAudit from €1,900; stabilization from €6,000Days to months
Ongoing developmentA senior-led team at a fixed monthly price€4,200–23,000 per monthMonthly

The AI row is our AI Production Launch: one to three AI workflows connected to your systems and data, at a fixed price set by scope after the audit, paid 30/40/30 at signing, the mid-point demo and production acceptance. Larger AI programs with more workflows are quoted separately.

What drives the cost of custom software?

Five things decide most of the price:

  1. The core workflow. A form that saves data is cheap. A workflow with approvals, pricing rules, exceptions and several user types is not.
  2. Integrations. Each system you connect (Fortnox, Visma, Business Central, HubSpot, a payment provider, BankID) adds work. Reading data is simpler than two-way sync, and migrating history is its own task.
  3. Users and permissions. One user type is simple. Customers, partners, admins and per-customer roles each need their own flows and access rules.
  4. Interface polish. A clean internal tool costs much less than a branded consumer product with custom interactions.
  5. Compliance and data. GDPR, audit logs, accessibility for public-sector buyers and EU hosting are cheaper to build in from day one than to retrofit.

Team seniority sits on top of all five. A low hourly rate with weeks of rework is not a saving.

What a first release is made of

Here is how a typical first release breaks down. Effort is in person-weeks (one engineer for one week, including testing and review). At our rates a person-week is roughly €1,800–2,400 (40 hours at €45–60), which is a useful way to sanity-check any quote, ours included.

Building blockWhat it coversTypical effortWhat makes it bigger
DiscoveryUser journeys, scope, acceptance criteria, architecture1–2 person-weeksMany stakeholders, an undocumented process
Login, roles, organizationsUsers, invites, roles, password reset or simple SSO1–3Multi-tenant SaaS, custom roles per customer, SAML SSO
Core workflowThe screens and rules that do the actual job4–12Complex rules, several user types, offline use
Each integrationFortnox, Visma, Business Central, HubSpot, Stripe1–4 per systemTwo-way sync, poor API documentation, historical data
Payments and billingPlans, invoices, webhooks1–3Usage-based pricing, payouts, several countries and VAT rules
Admin and support toolsInternal admin, impersonation, feature flags1–2Approval flows, bulk import
ReportingDashboards and exports1–3Near-real-time data, role-specific metrics
InfrastructureCI/CD, staging, monitoring, backups, EU hosting1–2High availability, compliance evidence

A focused product with one core workflow and two integrations usually adds up to 15–25 person-weeks, which is how it ends up at €30,000–60,000. Add three more integrations, SSO and reporting, and you are heading toward €100,000.

Why do software quotes differ so much?

The wider market is hard to pin down. Clutch, which collects verified reviews of development firms, reports an average project cost of about $132,000 over roughly 13 months, and hourly rates of $25–49 for firms in Ukraine and $50–99 in Poland and Spain (Clutch pricing guide, updated September 2026). It publishes no Nordic figure; Swedish rates follow Swedish salaries, which you can see in the in-house section below.

Two quotes for “the same” project differ because the vendors assumed different things. Before you compare totals, check each quote against this list:

  1. A written list of assumptions and exclusions (design, content, data migration, app store accounts).
  2. Acceptance criteria for each milestone, not just a feature list.
  3. Who is on the team, and which senior engineer is responsible for architecture and code quality.
  4. What is included: testing, deployment, documentation, handover.
  5. What happens after launch: warranty, maintenance price, response times.
  6. Who owns the code, and when. With us you own it once it is paid.
  7. Where data is hosted and whether a data processing agreement (DPA) is in place.

A fixed quote given without discovery, or a vendor who can’t explain how they estimated, is a red flag regardless of the number.

Should you choose fixed price or time and materials?

Fixed price means an agreed scope, price and acceptance criteria. Time and materials (T&M) means you pay for the hours used and steer as you go. We cover both, plus monthly teams, in software development pricing models.

For projects we work like this. Discovery maps the workflow, the integrations and what done means. Then you get a written scope and a fixed price, paid against milestones in the proposal. Changes go through a written change request with their cost and effect on the timeline, so nothing grows silently.

The first sprint is covered by our first-sprint guarantee: before we start, we agree in writing what the first two-week sprint must deliver. If the sprint-1 demo doesn’t meet those acceptance criteria, you can stop and you don’t pay for that sprint.

T&M suits work where the scope can’t be written down yet, such as an inherited codebase or an internal team that needs more hands. Our engineers cost from €45/hour (mid-level) and €60/hour (senior), roughly €7,500–10,000 a month full time.

What does an in-house team in Sweden cost compared with a nearshore team?

Nearshore means your engineers work from a nearby country in a similar time zone. Ours are in Ukraine, one hour ahead of Sweden, and you sign a Swedish contract with Smoother Development AB.

In-house developer in SwedenEngineer through Smoother Development
Monthly costAverage salary 55,500 kr (SCB, 2024) + 31.42% employer contributions (Skatteverket) ≈ 72,900 kr (about €6,600), before pension, holiday pay, equipment and recruitmentFrom €45/hour mid-level, €60/hour senior: about €7,500–10,000 full time
Time to startTypically 2–4 months to recruit1–2 weeks
CommitmentEmployment contract and notice periodsSwedish contract, flexible terms from one month
Senior oversightDepends on who you hireA senior engineer responsible for architecture and code quality on every team
If someone leavesYou recruit againA second engineer knows the code, and it lives in your repository
Personal dataStays inside your companyDPA with Standard Contractual Clauses before anyone in Ukraine touches it; EU hosting by default

On paper the monthly numbers are close, and an average employee who is fully busy looks cheaper. But SCB’s figure is an average across experience levels, and senior developers earn more. Pension, holiday pay, equipment, recruitment and management time all come on top. The real comparison is usually not one engineer against one employee. It is a working team next month against a hire several months away, and whether you need someone senior to own the architecture.

What does custom software cost after launch?

Ongoing costs are where budgets go wrong, because they are left out of the first quote.

Ongoing costWhat it coversTypical cost
Hosting and servicesEU cloud hosting, database, backups, monitoring, email, error trackingA few hundred to around €1,500 a month at modest traffic
Usage-based servicesMaps, SMS, BankID, payment fees, AI model usageScales with use; set budget alerts
MaintenanceSecurity and dependency updates, monitoring, small fixesCare Lite €4,200 a month with us, or your own developer
Further developmentNew features and improvementsDelivery Pods: Start €8,200, Scale €14,000, Build €23,000 a month

A Delivery Pod is a team at a fixed monthly price with a senior engineer responsible for architecture and code quality. Start and Scale run month to month after the first month, Build has a three-month minimum, and every pod has 30 days’ notice. If you would rather take the system in-house, you can: you own the code.

How do you reduce the cost without cutting corners?

  • Build one workflow first. Ship the smallest version that does real work, put it in front of users, then decide what comes next.
  • Buy the commodity parts. Use proven services for login, payments, email and hosting, and spend the budget on what is unique to your business.
  • Timebox discovery. One or two weeks of structured work beats two months of open-ended meetings.
  • Decide integrations early. A late “can it also sync with Visma?” costs more than the same request in week one.
  • Measure from day one. Logging and monitoring are cheap to add at the start and expensive to add during an outage.

What to do next

If you have a project in mind, send us a short description of the workflow, the systems it must connect to and your deadline through the custom software development page. A founder replies, usually within one business day, with questions and a time for a call. After discovery you get a fixed price, and the first sprint is covered by written acceptance criteria. If your project is an AI workflow, start with the AI Production Audit (€3,500, 5 business days, credited in full if the launch starts within 60 days).

Frequently asked questions

How much does a simple custom web application cost?
A focused application with login, a handful of core screens and one or two integrations typically costs €30,000–50,000 with us and takes 6–8 weeks. A SaaS MVP with billing and an admin tool is typically €30,000–60,000 over 8–12 weeks.
Why do quotes for the same project differ so much?
Vendors assume different scope, seniority and risk, and hourly rates vary widely by country: Clutch lists $25–49 an hour for Ukraine and $50–99 for Poland and Spain. Ask every vendor for a written list of assumptions, exclusions and acceptance criteria, and compare those rather than the totals.
Is fixed price or time and materials cheaper?
Neither is cheaper by default. Fixed price caps your exposure but includes the vendor's risk; time and materials costs less when you have a product owner who steers every week. We give projects a fixed price after discovery and offer team extension from €45/hour (mid-level) and €60/hour (senior).
What does custom software cost to run after launch?
Hosting and third-party services for a business application with modest traffic usually cost from a few hundred to around €1,500 a month. Maintenance with us (security updates, monitoring, small fixes) is Care Lite at €4,200 a month, and continued development runs through a Delivery Pod from €8,200 a month.
How much does an in-house developer cost in Sweden?
Statistics Sweden (SCB) puts the average monthly salary for software and system developers at 55,500 kr (2024). With 31.42% employer contributions that is about 72,900 kr a month, before occupational pension, holiday pay, equipment and recruitment.
What is the first-sprint guarantee?
Before we start, we agree in writing what the first two-week sprint must deliver. If the sprint-1 demo does not meet those acceptance criteria, you can stop and you do not pay for that sprint.
Daniel Cherman
Written by Daniel Cherman Co-founder & CEO

Daniel co-founded Smoother Development and leads client work, delivery and the company's AI launches. Before that he was a tech lead at Nordicfeel, a Nordic online beauty retailer.

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