Key takeaways
- The main cost driver is scope, so the cheapest way to save money is to build less in the first version.
- Day rates vary widely between freelancers, offshore teams and UK agencies, and the cheapest rate is rarely the cheapest project.
- AI-assisted development lowers the cost of building, but not the need for experienced review.
- Budget for running costs after launch, typically hosting plus a maintenance plan.
"How much will it cost?" is the first question almost every client asks, and the honest answer is that it depends. That is not very helpful on its own, so this guide explains what it depends on, gives realistic ranges and shows how to keep the cost under control.
What drives the cost
Custom software is priced by the time it takes to design, build, test and launch. Four things decide how much time that is.
Scope. How many types of user, screens, features and rules the software has. This is by far the biggest factor.
Integrations. Each connection to another system, such as payments, accounting, a CRM or an AI model, adds work, and some third-party systems are much easier to work with than others.
Complexity of the rules. A booking system with simple time slots is very different from one with resources, discounts, cancellation rules and multiple locations.
Quality expectations. Accessibility, performance targets, security reviews, audit trails and high availability are all worth having, and all take time.
Typical ranges
These are rough guides for UK businesses, assuming a competent team and a reasonably clear brief. Your project could be smaller or larger.
| Type of project | Typical scope | Indicative time |
|---|---|---|
| Internal tool or admin panel | A few user roles, forms, reports, one or two integrations | 3 to 8 weeks |
| Customer portal | Logins, account management, documents, notifications, integration with your systems | 6 to 12 weeks |
| SaaS product, first release | Multi-tenant accounts, billing, onboarding, core feature set, admin panel | 8 to 16 weeks |
| Marketplace or platform | Several user types, payments between users, reviews, search, mobile app API | 4 to 9 months |
To turn time into money, multiply by the team's rate. At Larasoft, that is £20 per hour for engineers and £25 per hour for senior engineers, excluding VAT. Many UK agencies charge several hundred pounds per day or more, so the same weeks of work can cost very different amounts.
Why the cheapest rate is rarely the cheapest project
A low hourly rate does not help if the work takes twice as long, needs redoing or leaves you with code nobody else can maintain. When comparing quotes, look at:
- Who does the work. Ask who will write and review the code, and how experienced they are.
- What is included. Testing, project management, deployment and documentation are sometimes extra.
- Who owns the result. You should own the code and every account from day one.
- What happens after launch. Ask about support, response times and the cost of changes.
Our guide on how to choose a Laravel agency has a full list of questions to ask.
How AI changes the numbers
AI coding tools have genuinely changed the economics of software. Experienced teams using them well can deliver the same scope in less time, especially the repetitive parts: forms, admin screens, tests, integrations with well-documented APIs and documentation.
What AI has not changed is the need for judgement. Someone still has to design the system, decide what to build, check that the code is secure and correct, and take responsibility for it. Projects that skip that step tend to cost more later, often in a rescue.
That is why we pair AI-assisted delivery with senior review on every change. It is how we keep our rates low without passing risk on to clients.
How to keep the cost down
- Build less first. Launch the smallest version that is genuinely useful, then add features based on what users actually do. This is the single most effective way to save money.
- Use what exists. Well-maintained packages and services for login, payments, email and admin panels are cheaper than building your own.
- Be clear about rules. The more precisely you can describe how things should work, the less time is spent on rework.
- Choose fixed prices for well-defined work and time-based billing for discovery and changing requirements.
- Make decisions quickly. Waiting for decisions is one of the hidden costs of any project.
Running costs after launch
Software needs looking after once it is live. Budget for:
- Hosting, which for most business applications is tens to a few hundred pounds a month. See our hosting comparison.
- Third-party services, such as email sending, error tracking, payments and any AI usage.
- Maintenance, to keep the framework, packages and servers up to date and secure. Our support plans start at £200 per month.
- Improvements, because once people use the software, they will have ideas.
Getting an accurate figure
The fastest way to an accurate number is a short conversation about what you need. Book a free call and we will give you either a fixed price or an estimate range for each milestone, with the assumptions written down. See our bespoke software development service and our pricing for more.