How Much Does Custom Software Development Cost? Three Scenarios Ranging from 10,000 to 230,000 Euros


Cover image: Custom Software Costs – Three Scenarios Ranging from 10,000 to 230,000 Euros

The question of custom software costs cannot be answered with a single figure, but rather with three scenarios that reflect the actual range. Small automation tools cost significantly less than complex platforms, and anyone who compares the two using the same metric is making an incorrect calculation. We present three real-world examples from industry and retail, each with its own cost structure.

In a nutshell

Custom software costs between 10,000 and well over 150,000 euros, depending on its scope. Small Automation Tools range from 10,000 to 30,000 euros; mid-range business applications range from 50,000 to 150,000 euros; and complex platforms start at 150,000 euros. In addition, annual maintenance costs amount to 15 to 20 percent of the development costs.

An Overview of Three Scenarios; Sources: Artezio via Prowedo 05/2026, Smartbetrieb 03/2026, Jans IT 02/2026
Scenario A typical example Budget
Small Automation Tool Automatically generate delivery slips from an inventory list 10,000 to 30,000 euros
Mid-range business application Customer Portal, Inventory Management, or CRM with Multiple Roles 50,000 to 150,000 euros, in some cases up to 230,000 euros
Complex Platform Production planning across multiple locations, deeply integrated into the ERP system starting at 150,000 euros

Scenario 1: The Small Automation Tool

An internal tool that replaces a manual process—such as the automated generation of delivery slips from an inventory list—costs between 10,000 and 30,000 euros (Artezio via Prowedo, 05/2026). The effort involved primarily lies in integrating the system with an existing one and in a few, clearly defined functions. At agencies in Germany, Austria, and Switzerland (DACH), hourly rates range from 90 to 150 euros (milkycode, 07/2026), so a project like this can be completed in just a few weeks.

Programming is rarely the most time-consuming part of this process. Most of the time is spent clarifying exactly what needs to be automated. An ambiguously defined goal can quickly turn a four-week project into a three-month one. To learn how to address this issue in advance, see the article on requirements specification.

Scenario 2: The Average Business Application

CRM systems, customer portals, or warehouse management systems with multiple user roles range in price from 50,000 to 150,000 euros (Smartbetrieb, 03/2026), and in some cases up to 230,000 euros for systems with a broader range of features (Artezio via Prowedo, 05/2026). Several cost components come into play here: conceptualization and design, the actual development, testing phases, and initial user training.

In one of our projects, a retail company wanted to digitize its returns management process, integrating it with its existing inventory management system and creating a dedicated interface for warehouse staff. Projects like this almost always fall into the mid-range cost bracket because, while their scope of functionality is manageable, they require significant integration work.

Scenario 3: The Complex Platform

Platforms with multiple modules, a large user base, and deep integration with existing ERP or MES systems start at 150,000 euros (Jans IT, 02/2026) and can cost significantly more. This category includes, for example, enterprise-wide production planning systems or platforms that serve multiple locations simultaneously.

Given the scope of this project, it’s worth setting aside a risk buffer of 20 to 30 percent of the planned costs (Jans IT, 02/2026). Complex projects almost always encounter unexpected dependencies—such as an outdated interface or an undocumented system—and sometimes a requirement that only becomes apparent during testing. Those who factor this buffer into their planning from the start won’t have to renegotiate under time pressure later on.

Additional costs for custom software after launch

Development costs are only part of the equation. Maintenance accounts for 15 to 20 percent of the original development costs each year (milkycode, 07/2026).

78 %

of the total cost of custom software can arise over its service life after launch. Anyone who budgets only up to go-live is planning for the smaller part.

BrotCode via milkycode, 2026

One effect is currently shifting this calculation. AI-supported development shortens project timelines by 40 to 60 percent (Prowedo, 05/2026), which mainly reduces development costs but not the maintenance effort. So anyone who develops more cheaply with AI support should still budget realistically for the share of operating costs. That is exactly where the costs arise that are often missing from the first quote, as we show in detail in our article on hidden costs in software projects .

What These Numbers Don't ShowNone of the three scenarios can be applied directly to another company. The ranges mentioned are based on industry data and our own project experience; they are not a substitute for a cost estimate tailored to a specific case. A reliable quote can only be provided after the requirements have been clarified—not based on a table found online.

Assign Your Project to a ScenarioSend us two sentences describing the project. We'll let you know what price range it falls into and what factors influence the price within that range.

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Frequently Asked Questions

What is the biggest driver of custom software costs?

The most significant factor is the clarity of requirements at the start of the project. Unclear or changing requirements prolong projects and increase the workload far more than the sheer complexity of the functions. The second most important factor is the number and quality of interfaces to legacy systems.

How reliable are fixed-price quotes?

Fixed prices are reliable when they are based on a detailed requirements specification. Without this foundation, fixed prices are estimates that carry a high risk of renegotiation. A risk buffer of 20 to 30 percent (Jans IT, 02/2026) should be included in every serious calculation, whether as a buffer within the fixed price or as a budgeted reserve on the client’s side.

How much will it cost to operate the system after launch?

Expect maintenance costs to amount to 15 to 20 percent of development costs per year (milkycode, 07/2026). For a 100,000-euro project, that amounts to 15,000 to 20,000 euros annually for bug fixes, security updates, and minor adjustments—not including major enhancements.

The Next Step

For every quote, torck factors in the costs over five years, not just development alone. Our development teams in Maxhütte-Haidhof, Vienna, and Rabat have been building custom software for industry and retail for years and know the maintenance and operating costs from their own projects. You enter into contracts with the German torck GmbH. In the Initial Consultation we work out together which scenario fits your project.

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Florian Blischke
Managing Director of torck GmbH · Over 20 years of software development experience
Florian Blischke is the managing director of torck GmbH and has been working in software development for over 20 years. He is responsible for custom software solutions for industry and retail, ranging from the integration of physical processes and IoT to cloud architecture and data- and AI-driven systems. At torck, he oversees, among other projects, the Jouvoli energy platform and the KVM Fleet fleet management product. torck develops software at its locations in Maxhütte-Haidhof, Vienna, and Rabat, and places a strong emphasis on software that actually works in real-world operations.

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