How much does bespoke software cost in the UK? (2025 guide)
· Kat Korson
Quick answer: Bespoke software development in the UK typically costs between £10,000 and £500,000+ depending on complexity. Simple internal tools start from £10,000-£30,000, customer-facing web applications range from £30,000-£100,000, and enterprise systems can exceed £500,000. Developer day rates range from £300-£900 depending on seniority and specialism.
If you're searching for honest answers about software development costs, you've probably noticed that most agencies dodge the question entirely. "It depends" is the standard response, followed by "contact us for a quote."
We think that's frustrating - and frankly, a bit unfair to business owners trying to plan their budgets.
At Red Eagle Tech, we take a different approach. This guide provides real numbers, honest explanations, and our actual pricing approach - including the fixed-price model that protects you from budget overruns. Whether you're budgeting for your first custom application or evaluating quotes from multiple agencies, this guide will help you understand what you're paying for.
Quick cost estimates by project type
Before we dive into the details, here's a straightforward breakdown of typical UK software development costs in 2025. These ranges are based on our experience delivering projects for SMEs across the UK, combined with current market data.
| Project Type | Typical Cost Range | Typical Timeline |
|---|---|---|
| MVP / Proof of Concept | £10,000 - £35,000 | 4-10 weeks |
| Simple Internal Tool | £10,000 - £30,000 | 4-8 weeks |
| Customer Portal / Web App | £30,000 - £80,000 | 3-6 months |
| Mobile App (Cross-Platform) | £25,000 - £75,000 | 3-6 months |
| Mobile App (Native iOS + Android) | £50,000 - £125,000 | 4-8 months |
| E-commerce Platform (Custom) | £50,000 - £150,000 | 4-9 months |
| Business Intelligence / Power BI | £5,000 - £50,000 | 2-12 weeks |
| API / System Integration | £5,000 - £50,000 | 2-8 weeks |
| Bespoke CRM System | £35,000 - £100,000 | 3-6 months |
| Enterprise-Scale System | £100,000 - £500,000+ | 6-18 months |
Interactive cost estimator
Get a ballpark estimate for your project in under 2 minutes. This tool provides indicative ranges based on typical UK market rates - your actual quote may differ based on specific requirements.
Step 1: What type of project are you planning?
Internal tool
Staff portal, workflow tool, admin system
Web application
Customer portal, SaaS platform, booking system
Mobile app
iOS, Android or cross-platform
E-commerce platform
Custom online store, marketplace
Integration / API
Connect existing systems, build APIs
Enterprise system
Large-scale business platform
Step 2: How complex is your project?
Standard functionality, minimal customisation, few integrations, single user type
Custom workflows, 2-4 integrations, multiple user roles, standard reporting
Complex business logic, 5+ integrations, advanced security, real-time features, AI/ML components
Step 3: Select features you need
Choose all that apply - each adds to your estimate
Your estimated project cost
Based on your selections, this is a typical range for UK agencies in 2025.
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Red Eagle Tech's fixed-price promise
Unlike most agencies, we offer fixed-price quotes on most projects. This means:
- You know the exact cost upfront - no surprises
- If development takes longer than expected, we absorb the cost
- You pay for delivered outcomes, not time spent
This estimate is for guidance only. Actual costs depend on detailed requirements analysis. Contact us for a proper assessment and fixed-price quote.
UK software developer rates (2025)
Understanding developer rates helps you evaluate quotes and understand where your money goes. Here are current UK market rates for 2025:
| Role | Day Rate | Hourly Rate |
|---|---|---|
| Junior Developer (0-2 years) | £250 - £350 | £30 - £45 |
| Mid-Level Developer (2-5 years) | £400 - £550 | £50 - £70 |
| Senior Developer (5+ years) | £550 - £750 | £70 - £95 |
| Technical Architect / Lead | £600 - £900 | £75 - £115 |
| UX/UI Designer | £350 - £550 | £45 - £70 |
| Project Manager | £500 - £600 | £65 - £80 |
| AI/ML Engineer | £800 - £1,200 | £100 - £150 |
| DevOps Engineer | £500 - £700 | £65 - £90 |
Regional variations
Rates vary across the UK:
- London: 10-20% premium above national average
- Manchester, Leeds, Bristol: Close to national average
- Scotland, Wales, Northern Ireland: Often 10-20% below London rates
- Remote agencies: Can offer competitive rates regardless of location
Agency vs freelancer
Agency
Typical rate: £80 - £150/hour
- Full team (developers, designers, project managers)
- Established processes and quality assurance
- Continuity if team members leave
- Ongoing support and maintenance
Freelancer
Typical rate: £40 - £100/hour
- Lower hourly rates
- Direct communication
- Single point of failure risk
- May lack full project management
Detailed project cost breakdown
Let's look at what you actually get at different budget levels, with real examples of the type of solutions each budget can deliver.
£10,000 - £30,000: Small business essentials
What you can build:
- Simple internal staff portal with user authentication
- Basic inventory management system
- Customer enquiry tracking tool
- Single-purpose automation workflow
- MVP to test a business idea
Typical scope: 4-8 weeks development, 1-2 developers, basic design
Example: A regional estate agent needed a simple property viewing scheduler. We built a web-based system that syncs with their existing CRM, sends automated reminders to clients, and provides a dashboard for agents - delivered for £18,000 in 6 weeks.
£30,000 - £80,000: Business-grade applications
What you can build:
- Customer-facing portal with secure login and personalised dashboards
- Multi-user business application with role-based permissions
- Booking or reservation system with payment integration
- Cross-platform mobile app (iOS and Android)
- Custom CRM tailored to your business processes
Typical scope: 3-6 months development, 2-4 team members, professional UI/UX design
Example: A training company required a complete learning management system with course creation, student tracking, certificate generation, and Stripe payments. The project cost £52,000 and took 4 months.
£80,000 - £150,000: Complex business platforms
What you can build:
- Full e-commerce platform with custom features and multiple payment gateways
- Marketplace connecting buyers and sellers
- Comprehensive operations management system
- Multi-tenant SaaS application
- Integration hub connecting 5+ business systems
Typical scope: 6-12 months development, 3-5 team members, extensive testing and documentation
Example: A wholesale distributor needed a B2B ordering platform with real-time stock levels, custom pricing tiers, credit account management, and ERP integration. Delivered at £115,000 over 8 months.
£150,000+: Enterprise-scale solutions
What you can build:
- Complete digital transformation of business operations
- AI-powered analytics and automation platforms
- High-traffic, high-availability public platforms
- Regulated industry solutions (healthcare, finance)
- Multi-geography, multi-language systems
Typical scope: 12-24 months, 5-10+ team members, phased delivery, ongoing development
Example: Projects at this level typically involve transforming core business operations or creating platforms that become central to the business model.
Fixed price vs time and materials: Which is right for you?
How you're charged for development can significantly impact your total cost and risk exposure. Understanding these models is essential before signing any contract.
Fixed price
How it works: You agree a total price upfront based on a detailed specification. The agency delivers the agreed scope for that price - regardless of how long it actually takes.
Advantages
- Budget certainty - know your total cost before starting
- Risk transferred to agency - they absorb overruns
- Focus on outcomes, not hours
- Easier to get internal approval
Considerations
- Requires clear, detailed specification upfront
- Changes to scope may require new quotes
- Agencies may build in contingency
Best for: Projects with clear requirements, budget-conscious clients, first-time software buyers
Time and materials (T&M)
How it works: You pay for actual time spent at agreed day/hourly rates. The final cost depends on how long the project actually takes.
Advantages
- Flexibility to change direction as you learn
- No need for perfect specification upfront
- Pay only for what you use
- Easier to start quickly
Considerations
- Open-ended cost commitment
- You carry the risk of overruns
- Harder to budget accurately
- Requires close project oversight
Best for: R&D projects, evolving requirements, long-term development partnerships
Our recommendation
For most SME projects, fixed price provides better value and peace of mind. You know exactly what you'll pay, and the agency is incentivised to work efficiently. This is why Red Eagle Tech offers fixed-price quotes as our standard approach - we're confident in our ability to estimate accurately and deliver on our promises.
Our approach: Fixed-price confidence
At Red Eagle Tech, we've built our software engineering business around giving clients budget certainty. Here's how our approach differs:
Fixed-price quotes
After our discovery phase, you get a fixed price for the agreed scope. If we underestimate the work, that's our problem - not yours.
100% UK team
Every developer on your project is a permanent UK-based team member. No offshore subcontracting, no contractors - just experienced professionals.
Quality confidence
We're confident offering fixed prices because we only hire exceptional engineers. High quality means accurate estimates and reliable delivery.
Example fixed-price projects
To give you a sense of what different investments deliver, here are representative examples:
| Project Type | Fixed Price | What's Included |
|---|---|---|
| Staff Scheduling Tool | £18,000 | Shift management, availability tracking, notifications, manager dashboard, mobile-responsive |
| Customer Portal | £35,000 | Secure login, order history, document library, support tickets, account management |
| Inventory Management | £45,000 | Stock tracking, barcode scanning, supplier integration, low-stock alerts, reporting |
| B2B Ordering Platform | £75,000 | Trade accounts, custom pricing, credit limits, ERP sync, repeat ordering, delivery tracking |
Note: These are illustrative examples. Your project will be quoted based on your specific requirements after our discovery process.
Calculating your return on investment
Custom software is an investment that pays back over time. Here's how to think about the return:
Common ROI drivers
- Time savings: Automating manual processes typically saves 10-40 hours per week
- Error reduction: Eliminating manual data entry can reduce errors by 90%+
- Revenue enablement: New capabilities that weren't possible before
- Customer retention: Better service through self-service portals
- Scalability: Handle growth without proportional staff increases
Simple ROI calculation
Consider a £50,000 system that saves your team 20 hours per week:
- Annual time saved: 20 hours × 48 weeks = 960 hours
- Value at £30/hour (loaded cost): £28,800 per year
- Payback period: £50,000 ÷ £28,800 = 1.7 years
- 5-year ROI: (£144,000 - £50,000) ÷ £50,000 = 188%
And this doesn't account for error reduction, improved customer satisfaction, or capacity to scale.
Industry benchmark: According to research by Forrester, custom software projects typically deliver 200-300% ROI over 5 years. The key is choosing the right project to automate - one that addresses a genuine bottleneck in your operations.
Frequently asked questions
Yes, when it solves a genuine business problem that off-the-shelf software can't address. The key questions are:
- Are you spending significant time on workarounds with your current tools?
- Is your business process genuinely different from standard approaches?
- Could automation save meaningful hours each week?
If you answered yes to any of these, bespoke software could deliver strong ROI. Start with a smaller project to prove the value before committing to larger investments.
This depends entirely on your pricing model:
- Fixed price: The agency absorbs overruns. Your cost stays the same regardless of how long development takes.
- Time and materials: You pay for actual time, so overruns increase your cost.
This is precisely why we recommend fixed-price contracts for most projects. At Red Eagle Tech, if our estimate is wrong, we absorb the difference - that's our risk, not yours.
Typical timelines:
- Simple tools: 4-8 weeks
- Business applications: 3-6 months
- Complex platforms: 6-12 months
- Enterprise systems: 12-24 months
These include discovery, design, development, testing, and deployment. Rushing typically leads to problems - quality software takes time to build properly.
Offshore development can be 40-60% cheaper on paper, but the total cost often ends up higher due to:
- Communication overhead and timezone challenges
- More revision cycles due to misunderstandings
- Quality issues requiring rework
- Difficulty enforcing contracts internationally
For business-critical applications, we recommend UK agencies. The premium is typically 20-40% for significantly reduced risk and better outcomes.
Plan for these annual costs after launch:
- Hosting: £600-£6,000+ per year depending on scale
- Maintenance: 15-25% of original build cost annually
- Third-party services: Variable based on usage
- Enhancements: Budget 20-30% of build cost for Year 1 additions
A £50,000 project typically costs £10,000-£20,000 per year to maintain and host properly.
Consider bespoke software when:
- Your business process is genuinely unique
- Off-the-shelf solutions require too many workarounds
- You need to integrate multiple systems that don't talk to each other
- You're paying for features you don't use in existing software
- Your competitive advantage depends on unique capabilities
Stick with off-the-shelf when standard processes work for you, budget is very limited, or you need something immediately.
Key factors to evaluate:
- Relevant experience: Have they built similar systems before?
- Team composition: Who will actually work on your project?
- Communication: Are they responsive and clear in their explanations?
- Pricing model: Do they offer fixed-price for budget certainty?
- References: Can they provide client testimonials?
- Post-launch support: What happens after go-live?
The cheapest quote is rarely the best value. Focus on total cost of ownership and confidence in delivery.
Absolutely - and we often recommend this approach. Benefits include:
- Lower initial investment and risk
- Faster time to value
- Learning what you actually need through real usage
- Spreading costs over time
The key is building with future expansion in mind. A well-architected MVP can grow into a comprehensive platform without requiring a complete rebuild.
Change is normal in software projects. How it's handled depends on the pricing model:
- Fixed price: Changes outside the agreed scope are quoted separately. Minor clarifications are typically absorbed.
- Time and materials: Changes are accommodated flexibly but add to the total cost.
We recommend a thorough discovery phase to minimise surprises. When changes do arise, we provide clear options and costs before proceeding.
Ready to get a fixed-price quote?
Stop guessing what your project will cost. Get a clear, fixed-price quote from a UK team you can trust.
Free consultation
30-minute call to understand your needs
Fixed-price quote
Clear costs with no hidden surprises
No obligation
Take your time to decide
Final thoughts
Software development costs vary enormously because every project is different. But with the right information and the right partner, you can make confident decisions about your technology investments.
The key takeaways from this guide:
- UK bespoke software typically costs £10,000-£500,000+ depending on complexity
- Fixed-price contracts transfer risk to the agency and provide budget certainty
- Plan for ongoing costs of 15-25% of build cost annually
- ROI typically exceeds 200% over 5 years for well-chosen projects
- Start small, prove value, then expand
At Red Eagle Tech, we believe in radical transparency about pricing. We hope this guide has given you the information you need to make informed decisions about your software investment.
If you'd like to discuss your project and get a fixed-price quote, we're here to help.
