"What will it cost?" is usually the first question, and the honest answer is often a disappointing "it depends". This article makes that concrete: what the cost of custom software is made of, which amounts are typical for different kinds of projects in the Netherlands and Western Europe, which costs continue after launch, and how to compare quotes fairly.
The amounts below are indicative market ranges (excluding VAT) to give a sense of scale. They are not a quote; your project may fall outside them.
What are you actually paying for?
With custom software you mostly pay for the time of experienced people. So the price is roughly: number of hours × hourly rate. Those hours don't only go into programming:
- Analysis and design: working out exactly what needs to happen, which systems are involved and what the edge cases are.
- Building: the software itself, including integrations with existing systems.
- Testing: automated tests plus testing with real data and real users.
- Go-live: setting up hosting, migrating data, monitoring and backups.
- Project management and communication: alignment, demos, course corrections.
A rule of thumb from practice: actual programming is often only half the work. A quote that only lists "build hours" is usually too optimistic.
Hourly rates in the Netherlands
| Type of provider | Typical range per hour (excl. VAT) |
|---|---|
| Freelance developer | €70 – €120 |
| Software agency (team, project lead, continuity) | €90 – €150 |
| Specialist (e.g. trading systems, Rust, security, architecture) | €110 – €175 |
| Offshore teams | €25 – €60, plus extra coordination and communication costs |
A lower hourly rate doesn't automatically mean a lower project price. An experienced team that builds something well in 200 hours is cheaper than a cheap team that needs 500 hours and then still requires fixes.
Indicative project prices
| Type of project | Examples | Indication |
|---|---|---|
| Integration or automation | Web shop ↔ accounting, orders flowing automatically into Exact Online or AFAS, automated reporting | €3,000 – €15,000 |
| Internal tool or dashboard | Planning tool, stock overview, customer portal with limited features | €15,000 – €50,000 |
| Web application or MVP | First version of a SaaS product, platform with user management and payments | €30,000 – €100,000 |
| Complex platform | Multiple user roles, many integrations, high demands on speed, security or availability | €100,000+ |
What makes a project more expensive?
- Number and quality of integrations. A well-documented API is connected quickly; an old system without an API can become the most expensive part of the project.
- Unclear or changing requirements. Every change of direction halfway costs rework.
- Requirements for speed, availability and security. Software that must run 24/7 or processes sensitive data needs more design, testing and infrastructure.
- Data migration. Moving years of data out of an old system is often underestimated.
- Multiple platforms. Web and iOS and Android is roughly three times as much interface.
Don't forget the running costs
Software is never "done". After launch, plan for:
- Hosting and services: from a few tens to a few hundred euros per month for most business applications.
- Maintenance: updates of underlying software, security patches, changes when connected systems change. A common rule of thumb is 15–20% of the build cost per year.
- Further development: new requests from users. Budget for this deliberately instead of treating it as a setback.
Fixed price or time and materials?
Fixed price gives certainty, but only if the scope is truly fixed. The supplier prices in the risk, and every change becomes extra work. Time and materials (paying per hour) is more flexible and often fairer for projects that are still taking shape, provided you see what was delivered every sprint and can adjust course.
A good middle ground: a fixed price for a short analysis phase, after which you get a well-founded budget for the build.
How to keep costs under control
- Start with the core. First build the smallest version that delivers real value (an MVP) and expand based on actual use.
- Buy what's standard, build what sets you apart. Accounting, CRM and payments already exist; integrate them rather than rebuilding them. A build vs. buy evaluation prevents expensive mistakes.
- Have one decision-maker on your side who can answer quickly.
- Look at R&D incentives. In the Netherlands, technically novel software development may qualify for the WBSO tax credit for R&D work; many other countries have similar schemes. Check with the relevant agency (RVO in the Netherlands) whether your project qualifies.
Comparing quotes: ten questions
- How many hours are included for analysis, testing, go-live and project management?
- What is explicitly out of scope?
- How do you handle changes, and what does extra work cost?
- Who owns the source code and the data?
- Where will it be hosted, and what does that cost per month?
- What does maintenance cost per year, and what does it cover?
- How often will I see working software (demo every sprint)?
- Which comparable projects have you done?
- What happens if the developer gets ill or leaves?
- How is the software tested, and do I get those tests?
A provider that answers these questions clearly is usually also one that budgets realistically.
Need help with an estimate?
We build custom web applications, APIs and integrations for companies that need fast, reliable software. Describe briefly what you want to achieve and you'll get an honest first estimate, even if the answer is that an off-the-shelf package fits better.