How Much Does it Cost to Hire a Software Developer in 2025?
Published On August 12th, 2025 Engineering
The software development industry seems to be on an upward trend with respect to growth. Projections say that the industry is expected to hit $896.20 billion by 2029 at a rate of 5.01%.
So, what’s fuelling this growth?
The rising demand for innovation, especially automation, in all sectors has led to an ever-increasing market for software developers. Businesses are looking to upgrade or revamp their existing systems to improve operational efficiency, enhance customer relations, and reduce costs.
All such businesses have one question in common: “How much does it cost to hire software developer?”
This blog answers that question. It talks about the cost of hiring a software developer, the factors that influence the cost, and the types of teams businesses can leverage for software development. It also details the costs based on numerous criteria. Read on!
Table of Contents
How Much Does It Cost to Hire Software Developer?
The cost to hire a software developer usually ranges between $20 and $250 per hour. Numerous factors are considered when estimating the cost. The most common ones include the developer’s experience and expertise, the developer’s location, and the complexity and scope of the software project.
The sections below dive deeper into these factors that impact the cost to hire software developer.
Cost Depending on the Location and Developer’s Experience
The developer’s experience and locations have a major influence on the cost to hire software engineers. Factors like economic conditions and the demand for skilled developers play a role in the final cost.
Developers from countries like India and Ukraine are affordable due to the large pool of available talent. On the other hand, developers from countries like the United States and the United Kingdom are expensive, mainly because of the higher living costs.
Experience also plays a part. Junior developers are cheaper to hire, but they lack the necessary experience and knowledge. Mid-level developers are slightly more expensive than junior developers and offer the right balance of experience and skill. Senior developers are the most expensive, but they come with plenty of experience and knowledge, which is ideal for complex projects.
The table below shows the cost of hiring software developers of varying experience levels from 6 countries.
| Country | 0 – 2 Years (Junior Developer) | 2 – 5 Years (Mid-Level Developer) | 5+ Years (Senior Developer) |
|---|---|---|---|
| India | $20 – $35 | $30 – $60 | $55 – $90+ |
| United States | $30 – $45 | $50 – $75 | $90 – $200+ |
| United Kingdom | $35 – $50 | $60 – $85 | $80 – $250+ |
| Canada | $30 – $45 | $45 – $75 | $70 – $150+ |
| Australia | $30 – $40 | $45 – $55 | $80 – $120+ |
| Germany | $20 – $30 | $50 – $75 | $70 – $160+ |
Cost Based on Project Complexity and Scope
The complexity and scope of the project is also vital when businesses consider the cost to hire software development team.
Basic projects require minimal resources and a smaller team. The cost of developing such a project will be on the lower side. The development time is also less.
Projects with multiple modules, dashboards, and third-party integrations are expensive to develop due to the resources and time required. The need to adhere to industry-specific regulations when integrating third-party elements, like payment gateways, also adds to the final cost.
Some software development projects require the use of advanced tech like AI, ML, and blockchain. Specialists with expertise in technologies are expensive to hire, which will be included in the final cost.
| Complexity Level | Software Type | Features | Approximate Cost | Estimated Timeframe |
|---|---|---|---|---|
| Basic | Landing Pages, Company Portfolios, Applications with a Single Core Functionality | Contact forms, Basic UI, Minimal Animations, Static Pages | $4000 – $8000 | < 4 Weeks |
| Intermediate | eCommerce MVPs, CRM Modules, Supply Chain Platforms, Corporate Websites | Dashboards, User Authentication, Payment Gateway, Product Listing, Advanced Analytics | $15,000 – $60,000 | < 4 Months |
| Advanced | Custom Software, SaaS Applications, Social Media Apps, Enterprise Resource Planning Software | Third-party Integrations, Real-Time Features, Role-Based Access, Privacy Control, Advanced User Analytics | $75,000 – $150,000 | < 6 Months |
Cost Based on Experience and Expertise of Software Developers
The expertise and experience of the developers in the team play a crucial part in the cost to hire a software development team. It helps to have a mix of junior, mid-level, and senior developers for a smooth development process.
Developers with little to no experience are easy to find and hire. They have a basic understanding of essential concepts and tools and are usually assigned minor tasks under the supervision of mid-level or senior developers.
Mid-level developers have the experience of being part of a few projects and sufficient expertise to handle complex tasks and monitor junior developers. Mid-level developers are expensive, but their expertise and experience make them an essential part of a software development team.
Experienced developers are a critical part of any software development team, guiding team members with their expertise and experience of working in numerous projects. Senior developers are often the first point of contact when complex challenges arise.
Leads and architects are responsible for making crucial project-related decisions. They manage teams and ensure everything is working as intended. They are also the most expensive resources to hire.
| Level | Years of Experience | Expertise | Approximate Cost/Hour |
|---|---|---|---|
| Entry-Level | 0 – 2 Years | Basic programming skills, Bug fixing, Basic understanding of tools, Small feature development | $20 – $45 |
| Mid-Level | 2 – 5 Years | Full-cycle development, Database design, Good understanding of programming fundamentals, Knowledge of key tools, Code optimization, API integrations | $35 – $75 |
| Experienced | 5+ Years | Proficiency in specialized tech, Architecture design, System optimization, Analyzing complex software issues, Proficient in microservices and serverless architectures, Strong problem solving skills | $75 – $120 |
| Lead/Architect | 8+ Years | System architecture, Mentoring, Making decisions on tech stack, Scalability planning | $100 – $170 |
Factors Affecting The Cost Of Hiring Software Developers
The cost to hire software developers depends on numerous factors, including the location, the experience and expertise of the developer, the complexity and scope of the project, the hiring approach, the chosen tech stack, the timeframe of the project, and the support and maintenance required. These factors are briefly explained below.
Team Location
The location of the development team has a major influence on the cost to hire software developer. Developers from North America and the UK are on the expensive side, while those from countries like India, Ukraine, and the Philippines are on the affordable side due to their economic conditions and the demand for talent.
Developer Experience & Skill Level
The higher the developer’s skill and experience level, the more they cost. Developers specializing in a specific technology cost even more. It helps to look for a team with a mix of experienced and junior developers and specialists.
Project Complexity & Scope
Basic projects, like a web application with a core functionality or a landing page, are inexpensive to make. Advanced software projects that require third-party integrations, payment gateways, and other similar modules demand time, specialized talent, and resources, leading to a higher cost.
Hiring Model
Businesses can choose between building an in-house team, partnering with a software development outsourcing company like CONTUS Tech, or hiring a freelancer. All models have their pros and cons, so it helps to research each model before finalizing one.
Technology Stack
A project’s tech stack decides its scalability and the resources and talent required for development. The tools utilized and their licenses can all add up to the final development cost.
Timeframe
Software development projects where the business sets the deadline will cost more, as development teams will have to work round the clock to meet it.
Ongoing Support & Maintenance
The deployed software will have to be regularly monitored for bugs and performance issues. The technical support team may be needed to offer assistance in deploying the software and solve end-user issues. These expenses have an impact on the final software development cost.
Different Types of Software Developers You Can Hire for Your Project
Businesses have multiple options when it comes to hiring software development team, namely building an in-house team, opting for a software product development company, and hiring freelancers. Each option comes with its own set of advantages and disadvantages.
In-House Team
Building an in-house team is the most expensive of the three options. The average software development team has multiple members with unique specializations to carry out a specific task. Each member has to be hired and trained individually before they start working on a project. The project will be on hold during this time period, which can lead to delayed TTMs. The infrastructure that the software development project demands is another expense.
Salaries take up the major portion in this approach. The pay for developers, especially mid-level and senior developers, runs into hundreds of thousands of dollars. The company will also have to provide additional benefits and yearly/half-yearly appraisals.
The expenses aside, an in-house team provides unparalleled control and communication when compared to other approaches. The team members usually work on-site, making it easy to make clarifications, get updates on project development status, and stretch as per project requirements.
CONTUS Tech
Businesses looking to hire software developers should consider partnering with a third-party service provider, like CONTUS Tech. The company has close to two decades of experience in the software development industry. They come with the expertise and experience required to develop scalable, high-performing software for some of the top brands across the globe.
CONTUS Tech eliminates all the challenges involved in a software development project. They handle all aspects of software development, from strategizing to building, testing, and deployment. They also provide the technical assistance required to deal with installation challenges and end-user-related issues.
Third-party service providers allocate a dedicated team to each project, ensuring timely delivery and unmatched quality. They also provide flexible engagement models based on the budget and project requirements. Reputable companies like CONTUS Tech also let businesses hire software engineers to fill gaps in the development team. A software development company is the recommended option when businesses want to hire a software development team.
Freelancers
Freelancers are the most cost-efficient option among the three. They usually work in a remote setup and require zero to minimal management. But the disadvantages of freelancers outweigh the advantages.
A successful software development project is a team effort. Expecting freelancers from different countries to work together is unrealistic. The team often runs into timezone and language issues. Even if the businesses hire freelancers from the same country, disagreements over working methods may arise. Then there’s the issue with freelancer availability. They may juggle between projects, making it difficult to complete tasks within the specified deadline.
Communication issues are also common when working with freelancers. As the mode of communication is usually via mail, response times may be longer than usual. The quality of work may also be inconsistent if the task demands expertise that is outside the freelancer’s skill level.
Here is a comparison of the three development approaches.
| Criteria | In-House Team | CONTUS Tech | Freelancers |
|---|---|---|---|
| Price | $750,000+ per year | $30 – $80+ per hour depending on complexity | $20 – $60 per hour |
| Quality | Depends on management | High | Inconsistent |
| Location | On-site | Remote or on-site | Remote |
| Flexibility | Limited | Based on project schedules | Based on freelancer schedule |
| Team | Full-time team with dedicated designations | Dedicated team | Individual developer |
| Control Over Project | Full control | Full control | Limited control |
| Level of Communication | Direct face-to-face communication | Remote communication and project management | Limited remote communication |
Wrapping Up
Building software from scratch is a tedious task. It demands the expertise of multiple individuals, working together as a team to achieve a common goal. Skill, experience, and teamwork are vital parts of a successful software development project.
Businesses can choose to hire an in-house team for their projects. Although an in-house team offers better control, the initial investment required is high. Developer salaries, benefits, and infrastructure can make it a very expensive option.
Partnering with a software development outsourcing company, on the other hand, is extremely beneficial. They offer multiple engagement models and stick to deadlines. CONTUS Tech is an experienced software development partner with an impressive portfolio of successful projects across domains. They have the expertise required to handle industry-specific challenges and sculpt innovative solutions that scale to evolving market demands.
The ideal software development partner ensures timely project delivery, extended support, and software that meets all industry and business requirements. Make the right choice today!!
