How Much Does Custom Software Cost in the UK? [2025 Guide]

One of the first questions businesses ask when considering custom software is "how much will it cost?" The honest answer is: it depends. But this guide will help you understand what factors affect pricing and what budget ranges to expect.

Quick Answer: UK Software Development Cost Ranges

| Project Type | Typical Cost Range | Timeline |

|-------------|-------------------|----------|

| MVP / Prototype | £15,000 - £50,000 | 2-4 months |

| Simple Web App | £30,000 - £80,000 | 3-6 months |

| Medium Complexity App | £80,000 - £200,000 | 6-12 months |

| Enterprise Solution | £200,000+ | 12+ months |

These are ballpark figures. Your actual costs depend on many factors we'll explore below.

Factors That Affect Software Development Costs

1. Complexity and Features

The more features your software needs, the more it will cost. A simple CRUD application costs significantly less than a system with:

• Complex business logic
• Third-party integrations
• Real-time functionality
• AI/ML capabilities
• Advanced reporting

2. Design Requirements

Custom UI/UX design adds cost but significantly improves user adoption. Budget for:

• User research and personas
• Wireframing and prototyping
• Visual design
• Responsive mobile layouts

3. Technology Stack

Some technologies require more specialised (and expensive) developers:

• Standard web technologies: Most affordable
• Mobile development: Higher costs, especially for native iOS/Android
• AI/ML integration: Premium pricing for specialist skills
• Legacy system integration: Can add significant complexity

4. Development Team Location

UK-based developers typically charge £400-800 per day. Options include:

• UK agencies (£500-1000/day): Higher cost but easier communication, legal protection
• Nearshore (£250-400/day): Eastern Europe offers good balance of cost and quality
• Offshore (£100-250/day): Lowest cost but higher management overhead

How to Budget for Your Project

Start with the Problem, Not the Solution

Define the business problem you're solving and its value. If custom software could save you £100,000 per year in efficiency gains, spending £80,000 on development makes sense.

Consider Total Cost of Ownership

Development is just the beginning. Factor in:

• Hosting and infrastructure (£100-2000/month)
• Ongoing maintenance (15-20% of build cost annually)
• Future enhancements
• Support and training

Get Multiple Quotes

We recommend getting 3-4 quotes from different providers. Be wary of quotes that are significantly lower than others—there's usually a reason.

How LKM Software Ltd Approaches Pricing

We believe in transparent, fair pricing:

1. Free initial consultation to understand your requirements
2. Detailed written quote with breakdown of costs
3. Fixed-price or time-and-materials options available
4. No hidden fees or surprise charges
5. Flexible payment schedules for larger projects

Ready to Get a Quote?

Contact us for a free, no-obligation consultation. We'll discuss your requirements and provide an honest assessment of costs and timelines.